Putting on my sociologist cap (which I took off when I didn't go into academe...): there are so many variables at play here to draw a meaningful conclusion, especially during a worldwide pandemic where people's decision points are out of whack. But I do remember an adage I learned working at graphic design studios many years ago: when you compete on price there is always someone who will do it cheaper than you. Always.

As you rightly concluded, it's better to focus on how you most effectively solve a client's business problems. Perhaps in describing your packages, you could add a testimonial, or even better, stats on how your design solution resulted in: more customers, revenue, visibility, etc. Genuine clients aren't really looking for "pretty logos"; they're looking for help in building their business or brand.