My view on their pricing was only that "simply dropping the price" isn't always the answer. I've been in companies where that's all the sales team wants to do ... discount, then discount, then discount again. It got to a point where people thought the products were complete crap, losing money and then it was hard to get the price back up.
Could they adjust the price? Probably. But it's not always as simple as just drop your price to the lowest possible and the customers will come. For example, I remember a sales initiative in stores that saw a heavy rebate yet no meaningful demand in revenue increase from the higher price or unit volume increase from the higher price. They crowed and crowed about how it needed to be done and it would be made up on volume. Except the volume never happened and we left money on the table.
Price elasticity of demand - Wikipedia, the free encyclopedia
I actually think your proposal makes sense to try it at that price. Rather than whole-sale reducing it though, I'd probably do some special tests to see if it spikes the demand, then lower the price.