The most I've ever paid for something I actually wear is about L$2000 for a skin from the Abyss. I don't suppose I'd ever pay more for that for any item of fashion/clothing/so on. Mostly, I realize that impulse buys are <L$200, which is of course why most impulse buys end up being Bare Rose outfits while browsing the store with Freyja. Over that, a little bit of thought goes into it, but not necessarily a lot -- I didn't hesitate to buy an Elizabethean costume from Adam n Eve for L$1200, or a 17th century cavalier outfit from Medieval Designs for L$800, or one of Silent Sparrow's creations for L$800, because historical/historical-flavored fantasy wear is a favorite thing of mine and finding quality items in that area is not that easy when you're a guy and aren't interested in wearing massive shoulder pads attached to massive capes and so on.
It's all pretty difficult to sort out, really, just what pricing is the "sweet spot". Annyka Bekkers of Blowpop has some interesting discussion of her pricing experiments
here, which I think provides some food for thought.
Here's something that crossed my mind while chatting with Freyja:
Japanese designers often have very low prices for some really quite good designs. Japan is not a cheap place to live. Is this a sign that it's more of a game/hobby for many Japanese designers and residents, or are they selling enough volume to make it worthwhile monetarily?
SL has a significant Japanese community, as evidenced by SLMaMe.com, so I've always wondered what cultural differences (if any) there are in terms of purchasing and creating, and whether any lessons can be taken out of that.