Very true, while customer service should be your number one focus low prices shouldnt be ignored.
If for example an item in your store is the same price as Target I'm more likely to go get it from Target purely because A. I can have it in my hands today B. No excess costs like postage C. I can return it if I change my mind.
It's a balance that you need to look at getting just right, both for the customers and for yourself (because you dont want to put yourself out of pocket either).
So will we pay more then PC and dodgy ebay sellers charge for things? Yep. Will we pay a lot above what other stores charge just for good customer service? Not as likely.
It all comes down to personal preference (as well as income) at the end of the day. I know that there are people that refuse to shop anywhere but Myer or Toys R Us even though things are cheaper everywhere else, purely because of their preference, so I wont say that low prices are important to everyone, just that it's something that is worth looking at