Groceries via the Internet are becoming big business with competition growing, particularly on both coasts. In these markets there is often no service charge, but the customer pays full retail for the groceries. Customers will pay more for perceived quality, even if it costs less. The next time you purchase a new stove, notice digital models sell for more than the older knob types, even though the cost to manufacture a digital model is far less, because a complex, mechanical timing mechanism is replaced with a very inexpensive microchip. Consumers are willing to pay a premium for the newer digital models because they perceive the digital models are worth more.
Customers are willing to pay more for perceived convenience.
ATM machines have proliferated into grocery stores, malls, amusement parks and even banks. These automated dispensing safes are far less expensive for the bank to maintain than a teller who receives a salary and benefits. People will pay more if they don't know any better. Basic cable service to your home is usually an analog signal, which is lower quality with graininess and other anomalies. If you want better quality, you can upgrade to sharper image 'digital cable' for an additional monthly fee.