Perhaps they know they can’t offer a cost that makes sense / is competitive for those customers and would rather devote resources to a product that is competitive?
Love these strategy discussions
Having an noncompetitive product means fewer and fewer customers so the cost keeps going up per customer.
It also looks really bad. I know when I'm shopping around if I see sticker shock for some service even when it isn't exactly what I"m buying that is a big turn off for me as I assume that's how they price things ...