"We just give them what they want"
It's true in a way.
I'm in IT support/repair/consulting for a bit more than 10 years now.
I started cheap because I thought with my little experience on the job this is the way to attract customers. (And I had no business plan since I kind of slided into this business while I was actually pursuing another career which turned out to be a castle in the air.)
Over the years I repeatedly raised my price quotes a bit because I experienced that I'm doing better and more honest work than a lot of my competition that was operating with twice or thrice (Does this word even exist? It should...) the rates.
(Unfortunately I had to learn: A lot of the competition is either incompetent or fraudsters. Sometimes both.)
Now with the higher rates do I attract more complex cases that need more skill? Not really. I'm just attracting another segment of customers.
I'd even say the customers I attract now are the "better" customers. The value my service more. They are less often trying to get free work done or to cut prices. They are less often calling me at 10 pm or sundays. They are more reliable when it comes to pay the bills I send them.
But they don't have the more difficult tasks. Maybe even the contrary.
Thinking about it. I'm still in the medium (maybe even lower midfield) price range. Probably I should raise my rates further and see what happens then