By your claim, the competition is generally of low quality. We're talking about value for money, get what you pay for.
Let them try the alternative, find that it is poor, and regret not paying for quality. That's how markets work, its basic economics. It IS that simple.
I don't get your last paragraph. How do you mean, "maintain the value of the service"? I never argued that you shouldn't maintain value, I'm saying exactly that - you set the prices, if they don't like it, they can go elsewhere. It's about how you market yourself.