Low Price: "Race to the bottom"

I have learnt over the years that even if low pricing gets me more customers It doesn't guarantee profit making. 

Let me explain:

If I charge 50,000naira for  a job with a profit of 1000naira....

Because it is cheap I am likely to get 10clients, and make a total of 10,000naira profit. 

Now serving 10 clients will put me under tremendous pressure and I won't be able to hire assistants since my profit margin is very low. 

Most times I am worn out and not able to satisfy all my customers.

So I decided I rather charge one customer 60,000 and make all the profit from that premium customer, that way I can deliver premium service. 

And yes it has worked for me. 

I understand that people who are into buying and selling can do low profit margin since they sell to the masses, but for a service oriented business like mine, low pricing leads to zero profit, which in turn leads to bankruptcy(RACE TO THE BOTTOM).

Let me know what works for you.