I think you can create a healthy balance between service, support and price if you are in the position to do so.
For example to keep costs down, a large portion of our company is totally automated using technology developed in-house and we use the money saved to pay for staff in customer support. As the technology is bespoke - the servers operate well with it ensuring high uptime. The combination keep customers happy and they often buy another domain with us.
So although were classed as a "budget host", we often attract SME's, religious organisations, charitites.etc
just my $0.02