Why only charge 50% though? You only need to lower the prices to the point where the alternative is less desirable. That being said the point about getting lower quality customers remains.
In my personal experience, I once chose a host for a game server for my friend group because it was by far the cheapest option. However, one day with only a couple hours warning the host shut down. I didn't even have a chance to download a backup. Had I been running a for-profit server, my entire business would have vanished overnight and choosing the cheapest option would have shot me in the foot. Often paying more is worth the guarantee that stuff you depend on won't vanish overnight.
50% was just an example, but it has a nice round number about it that makes a compelling pitch. The key to making this idea work is to have much lower costs so that quality of the service doesn't suffer.
In my personal experience, I once chose a host for a game server for my friend group because it was by far the cheapest option. However, one day with only a couple hours warning the host shut down. I didn't even have a chance to download a backup. Had I been running a for-profit server, my entire business would have vanished overnight and choosing the cheapest option would have shot me in the foot. Often paying more is worth the guarantee that stuff you depend on won't vanish overnight.