Pricing is not as simple as "charge more" because it increases the premium factor by applying a this costs to much for me so it must be good factor.
There are hundreds of other factors you need to consider and I don't think applying a double my price equals success to your pricing schema always makes sense.
I think you missed the point. Walmart absolutely has negotiated deals in the past for products that appear to be the same but are not. Levi's jeans is one example. They tried to do the same thing with Snapper, as I recall, but were rebuffed.
If that's okay with you, great, you are matching the price of the product with the quality. But as a result of them doing it and not being completely transparent about it, I question what other products they've done the same thing with.
Even Wal-Mart plays on this by stocking name brands here and there.
I tend to think that they mostly sell cheap crap, that even their brand-name stuff has been renegotiated with the manufacturer so they can sell you a lower quality version in order to have the lowest price. They have definitely done this with some products, and at least attempted it on others.
So yeah, their pricing definitely affects my perception of their products. I avoid Walmart.
Office 365 has the clout of Microsoft behind it. I don't know that the general rule applies as well as it does to some new SaaS company I have never heard of before.