If they can’t keep the price low then a lot of consumers will go for cheaper/lower quality goods anyway,

Even for high-end enthusiast items, consumer sensitivity to price is pretty high. Just look at how bitter people have been about the NVidia RTX 4 series GPUs.

I know someone who buys groceries from Target because it’s significantly cheaper than other grocery stores in their area. This seems due to Target still implementing a kind of national pricing. Possible unexciting arbitrage opportunity there, I suppose?