I’ve been taught:

Value = Benefits received / Costs incurred

Costs can be price, time, energy, etc.

Benefits can be a physical product, an experience, a feature, or less tangible like peace of mind or security.

If you increase price, other costs must go down OR benefits must go up; otherwise value is lost.

And yes, it’s all perception. Benefits don’t affect all customers equally, and people place different value on their time, etc.

Your comment is spot on. I have just found this equation consistently holds up.