This is a pretty common sales & negotiation technique. Anchor high, with a much higher profit margin than you actually need. Do your best to get the customer to buy at the high price. Periodically, when you want to seem benevolent, offer a "sale" or "concession" that gets you down to what you were willing & able to do in the first place.

Every time you buy stuff on sale at the grocery store, you're seeing it in action, but you probably don't think much about it.