Yes, but an awful lot of small businesses (plumber, dog walker, restaurant, transmission shop, barber, etc) just need a basic brochure-ware site with some text, a few photos, an address, phone number and hours and maybe a contact form or hosted email. 1&1, Wix, Webs, Weebly, Wordpress.com, GoDaddy, Homestead/Intuit, Vistaprint, and probably 100 other places offer that DIY/lightly configured site offering. If that's the thing your (non-)client needs, why should they pay 100x that for something no functionally better for them? They don't want a website. They want more revenue, and they want their customers to be able to find, learn about, and choose them; a website is just a means to that end...

Disclaimer: I work for Vistaprint, who also owns Webs, and I always speak only for myself on news.yc, never for my employer.