I only wish Airbnb increased our prices. They suggest nightly rates as low as $16!!!
If you use Smart Pricing, you should see fluctuations in price. You can set a min. and a max. For instance, if you want to charge $175 and use Smart Pricing, you can set a min. at let's say $150, and max. of $250, that way you're still getting what you want, and the guests can pay a fair price based on demand.
(Un)Fortunately where I live, there are so few Airbnb hosts and even fewer quality Airbnbs, ours is an anomaly. Our amanties and number of reviews blows all our competition out of the water. We've got 300+ reviews (about 100/year), and the next top review-getter is 13, with one review describing the place as smelling like urine. Yet, Airbnb wants us to practically let guests stay for free. We don't set Smart Pricing to their suggested low, it's insulting.