What price for service

We had recently a very interesting debate on the issue of pricing and service and reached the following conclusion:
As a commodity, service should not be price sensitive or even price related. It is an integral part of any offering or product and consumers should be able to expect it and obtain it regardless of segment or price paid. What is more is that suppliers will need to ensure that within the range that a product sits they will need to deliver to the highest standard in order to remain competitive.
Operators that remove services with discounts and promotions are playing a dangerous game. It may have been a trend in the 80’s but is becoming more and more unacceptable unless effectively managed and controlled.
It is important that businesses be confident as to where the important touch points are within the fabric of their offering, at any price, and to excel at making it happen in that regard. Budget to luxury is exactly the same although naturally the touch points will differ. Service is not about luxury it is about delivery.
Technology has helped in this regard to deliver through process but we still need to find ways of getting over how we seamlessly overcome issues. Very often it appears to depend on human interaction or intervention to overcome difficulties. The real problem appears to be when such intervention does not occur and the technology says no! In those cases the consumer can find themselves going round and round in ever increasing circles.
For us, service is what makes a product do what it is intended to do for the customer. Get that right consistently and you are well on the way to success.
Organizations that do not spend enough time identifying and getting these fundamentals correct will in our view risk failure as markets become ever more discerning and demanding.
Occasionally, we do come across organizations and individuals that maintain this is all very obvious and it is unnecessary to focus, train and develop. Our answer is that if that is the case why do some hotels make it difficult to sleep, why sometimes in hospitality are people not hospitable and why are some restaurants non experiential?
The list is endless. When did you last check the fundamentals being offered in your business?