A couple of thoughts - when you start dropping rates, you are signaling that price is negotiable. If you'll come down $10, someone will sooner or later ask you to come down $20.
The focus on price, price, price sends a signal that you have nothing, nothing, nothing else to offer. When I lose a sale based on price, that is a lick on me because I did not do a good enough job of showing the value that the customer would get. People will pay for value; otherwise, no one would ever drive a Lexus or other quality vehicle.
I used to work for a company (totally different industry) that put a premium on price, ahead of anything else. That approach set a tone of "joe's discount house of whatever"; no emphasis on the quality of the service, nothing that would make a customer want to refer new business, nothing more than saving bottom-feeders a few bucks a month. That type customer will be the first to leave when he/she finds someone else who's a dollar below your price.
Finally, don't be afraid of trends. Brand new ideas are virtually impossible; variations of existing ideas, however, are another matter. Though it is closing some stores, Starbucks remains a successful enterprise having convinced Americans to drop $4 and more for a cup of coffee. The iPhone is a variation of something that has been around for years. What is the variation in your market?