Price versioning in fact means that you develop a lowest possible cost base price model which will capture the more price sensitive people in your market while at the same time ensuring fine margins. Then the twist is when you want to offer a better featured version of that product at a higher price, mostly designed for customers who are not price sensitive.
A few of the biggest examples of price versioning are Korean and Japanese car manufacturers, who do this on a regular basis. Even today these manufacturers will offer car models that have no radios and air conditioning but with a twist. High end car manufacturers such as BMW, Ferrari and Porsche will also charge much more for their special edition cars that have no radios or ACs.