You can sell the exact same product (or service) and some people are willing to pay $1000 for it while others aren't even willing to pay more than $10 for it.
For the exact same thing!
And the reason is very simple...
Because the value for the people who are willing to pay up to $1000 obviously exceeds the price of $1000.
Whereas the value for the people who aren't even willing to pay more than $10 obviously doesn't exceed the price of $10.
So at the end of the day the challenge isn't really to build a product/service that people are willing to buy.
The challenge is to find the people who get the most out of what you have on offer.
And that's a whole different story than to just find a group of people who are willing to buy.
It takes a lot more time, energy and resources.
Which is why the race to the bottom is so tempting.
P.S. Not surprisingly, the people who get the most out of your offer also get the most out of your offer. And the people who don't get any value out of your offer also don't get any value out of your offer. No matter how cheap you make it...