While working as a business develoment manager in the DC branch of a web development company headquartered in California, I was assigned to the non-profit sector.  The company President and COO pushed profitability to a degree which prevented selling a website for less than $15k and they ultimately wanted the baseline site to actually begin at $20k.  Basically, instead of looking to streamline internal processes for profitability, their path of least resistence was to raise the client cost.  As an example, EVERY website with a cms is built upon a database such as MySQL.  For the novice following written instruction, it takes all of 5 minutes to set up a MySQL database, yet regardless of its simplicity, they wanted to charge 10 hours at $125/hr to non-profits, and have me sell the worth/labor.  I had respect for this company as they were doing a purported $3Million+ /yr, however, I simply could not continue to morally support their business practice as it severely reduced the volume of potential business in the non-profit sector (my sector).  For reference, I far exceeded their goals and quotas for me.

The last straw was a situation where I sold a local church a website for $17k.  This church had 8 sister churches, all eventually needing websites.  Before even finalizing the first church's web design, the second one contacted me to have their website built.  They asked for the same $17k contract; same technology, just a different design/look.  When I presented this awesome opportunity to the President and COO, they would not approve the second contract, stating that I needed to "up the price" to $19k as they just raised all of the client pricing.  Can you believe that?  I couldn't either.

After arguing unsuccessfully with the powers that be, I presented the increased price to the second church.  Rightfully, we lost them and nearly lost the first church.

The second church contacted me personally and asked if I could help them.  That was the beginning of Design B Studios - our first client, and I saved them $7k.

Humorously but sadly, once I left, the President and COO attempted to raise the price charged to the first church and ended up loosing their business as well (DesignB later finished their site).

Although that company is still in business, they lost over 40 employees since that time.  Which brings up another interesting point... it does not take a staff of 40 to create a website, or even 10 websites at a time.  It takes a handful of dedicated, best-in-thier-field staff to get the job done.