You just look bad if you can't do what every other software is able to do. Charging for it takes that to another level.
That's how business works...
If such a business competitor doesn't exist, then yes charge extra, and actually do the work correctly.
This isn't some theoretical thing, we do this at $dayjob right now not only guessing the encoding but the file-type as well so that we can make sense out of whatever garbage our users upload. Everything from malformed CSV exports form Excel to PDFs that are just JPEGs of scanned documents. It works, and it works well.
And of course it does, the files our users are handing to us work on their machines. They can open them up and look at them in whatever local software they produced them with, there's no excuse for us to be unable to do the same.