Anyone create a no-frills version, reduce the price point, and achieve greater success?

Our product/service offering was considered quite premium, we landed a few clients, got great reviews but it's been an uphill getting new clients, especially in this economy,

However we recently had a new idea to create a no-frills version of our product/service. Still maintain a premium feel, but remove all the extra bells & whistles, creating a budget-priced offering.

Anyone else make a change like this and find greater success?

Additional Context: All the pieces of our product/service have different profit margins, the stripped down no-frills version is our core product with the highest margin (and least support needed). All the addons (bells & whistles) have significantly less profit margin, and require a lot of support. Selling 2 no-frills has more profit than 1 premium.