Judging by the sucess and failure of certain websites and experience in the non-electronic world: customer service is expensive.
For instance, I bought a formal set at Neiman Marcusm, jeez, musta been three years ago. Well, a stich fell out of the bow tie. I took it back today, no receipt, broken tie: they just gave me a new one, no questions asked. Granted, we're talking about THE upscale store in America today, but still, that type of service is a lost art.
You take a look at companies like Buy.com or the late, great Boo.com: these are companies that really try (tried) to please the customer. At the other end: Fry's and their ilk. These companies are doing great. It's sad to see, sad to see.