If you can get away with unreasonably high sounding prices, it's only because there's a demand for your service and not enough suppliers with your level of quality. As such, it's only a matter of time before someone comes by and undersells you with a similar service.

So it's not just "more fair" to set reasonable prices -- like your gut suggests -- but they also discourage competitors from appearing.

I guess the real question is whether or not you're willing to risk future competition for the short term benefits of increased profits.