It is true — people tend to automatically assume that higher price is equal to higher quality, especially when they haven’t experienced a lot of that kind of service.
I have, for example, experienced a lot of business coaching myself, and I can tell you for sure: some of the worst business coaches whose services I’ve used, charge a lot more than some of the better ones. So I’ve gotten wiser in terms of this type of service. In my industry of business/marketing coaching, there is a lot of greed and some of my peers charge ridiculously high rates, for not very good service.
Unfortunately people often need to waste some money with higher-price things before they realize that sometimes, the lower price options do just as good of a job, sometimes even better.
On the other hand, if you build your credibility through content and caring for your audience, your service will become to them the only option they want, among a sea of competitors. In other words, personal branding tends to eviscerate the price differentials, no matter if you charge less or more.