Karan's answer is definitely in the direction I would recommend heading.
Except for the most commoditized markets (ie: phone service, purified water, car tires, etc), there's always an angle to take to go up-market. It requires you to improve your messaging and closing skills (or conversion funnel), but it's definitely worth the investment.
Two books come to mind that are really great at unlocking ventures from the low-price trap:
1. Blue Ocean Strategy: This is a very thorough study on differentiating and the step-by-step process to identifying the variables to focus on to really stand out. It's so good that I used it as the textbook for a semester-long feasibility class at Fresno State.
2. Pitch Anything: This helps you frame your offering in a way that's compelling and not battling over the lowest common denominator items the market thinks are important.
Obviously, this is very general since the market and business model is unknown at this point, so feel free to follow up with any clarifying questions.
