When is it time to raise prices vs. when are you just avoiding the real problem (churn/positioning)?

I see a lot of "raise your prices" advice, and I mostly agree with it, but I think it's hiding a harder question: sometimes raising prices is the right move, and sometimes it's a way of avoiding the fact that your positioning is wrong and churn is telling you so.

The distinction I'm trying to draw: raising prices to capture value you're already delivering is good. Raising prices to fix a conversion or retention problem is rearranging deck chairs.

The tell, I think, is whether your existing customers would pay the new price. If yes, you were underpriced. If no, you have a different problem.

Curious how others have told the difference especially anyone who raised prices and then realized the real issue was something else entirely.