I don't agree with this–or maybe I do. It's hard to tell without knowing what he means by "testing your price with customers".

I think asking customers "what would you expect to pay for this?" should be part of your initial usability or beta test with potential customers. 2 Reasons for this: (a) your target market has certain price expectations for products and (b) you might "tell them" what to pay and still be too low.

I just did this with a new product we launched. My lowest plan was priced at $9/month. We did a usability test with our target market and ask them (at the end) what they expected to pay for a product like this. Only 1 person said a number lower than $20/month–and they went as high as $100/month.