Seeing the dirt cheap ads for detailing used to bug me and I would think to myself, "Those guys are ruining the market!". Now it doesn't bother me at all.
I like analogies so here is one I use to explain to people who want to know why my prices are what they are.
The restaurant industry is the best comparison I can make to help people see my value. Tunnel car washes are like fast food restaurants. Your car will get clean just like a ff restaurant will fill your stomach. The consequences of a tunnel car wash are poor quality, harsh ingredients/chemicals causing damage either right away or over time. The consequences of a fast food joint are pretty much the same. Anytime detailers price themselves cheap they are trying to be a "fast food restaurant".
Do they have their place? Yes. Are they the best for the health of you car? Certainly not.
I don't try to be a ff restaurant anymore. To most of my customers I try to be an Outback or Chilis. Good food with friendly service at a reasonable price. That's my target customer although I can be a five star restaurant for those who want the best work possible but that's not my bread and butter.