PC repair is a low volume, high touch, high skill business. If you set aside a single $100 customer for a $500 one, it can work since both exist.

Hamburgers of the Wendy's grade are a volume and convenience game. For every thousand $4 customers, can they replace them with 667 $6 customers?

I've noticed an interesting phenomenon in the last couple years. The cheapest options and biggest chains ramped their prices much faster than the places a notch or two better. The gap has closed enough that suddenly those "notch or two better" places are more competitive than before-- if it will be $50 instead of $30 to take the family to Wendy's, why not stretch to $65 for get Five Guys or a local place instead.