To answer your question it's one of the most basic ways to compete against other businesses. Generally speaking you can compete by either offering lower prices(think walmart), or you offer higher quality for a higher price(think starbucks). You also have hybrid strategies like simultaneously providing low-cost and higher quality but these are extremely rare due to conflicting circumstances, and you usually need to have a near monopoly/loads of resources to pull something off like that where you basically outclass all your competitors on every level yet never sustain huge losses.
Bottom line different people have different needs so they either don't mind risking their account to low fb people others not so much.
I like the opposite approach where I charge a premium for my services. But I paid my dues once upon a time and have high rep so I guess I can get away with that :Noah: MFW I did monkey madness for 10m