1.) Don't knock the Wal-Mart steaks. Paying $3.75 for 17 pounds of meat makes me not care where it came from.
2.) I actually think that raising prices might help things out. It may or may not be the right thing to do from WiS's profit perspective, but as mentioned before, making it cheaper to play is just going to make it easier to drop teams.
An anecdote from my business experience. I work part-time as a personal trainer to pay for grad school. To try to generate more business, I offered people a few training sessions for free. People wound up signing up for the free sessions but then canceling or half-assing and really not getting anything out of it. Business went down.
At the advice of a mentor, I raised prices significantly this spring and client attendance went up to nearly 100% and people were actually happier with the product because they were determined to make their more expensive sessions "worth the cost." Business went up.
Just a thought.