was working with a friend today and had a situation that is relevant.
Working at one house and the neighbour comes over and asks what he would charge to clean a syn 5x8 area carpet. Since it was on laminate he figured we could just "knock it off" on the drive way. My friend has a very clean, very immaculate looking TM (Cleanco in a GM Savana) and his view is he isn't cleaning carpets in someone's driveway. His min is 150, with syn area rugs he takes them to a local shop and charges $2.50/sf, immersion washed. Of course the guy didn't have it done.
My friend's viewpoint is that it gives the wrong posture/appearance to his current client who is being charged 55cents/sf for his carpet and his neighbour gets his carpet cleaned for $40 in the drive. Even though its more price per sf, its the appearance.
Now cue David or whoever that would have knocked it off and pocketed the $40.
But when this neighbour thinks of my friend, he's not thinking fly by night, or cheap cleaner, etc, he's thinking this guy might be too expensive and he might be too proud to clean my rug, but he'll know that his neighbour had an awesome cleaning by a trustable company. The neighbour may call a cheap company in the future, but the first bad cleaning he gets he'll be thinking of the cleaner that cleaned next door and did a great job, expensive but great job. Its all about positioning.
Oh, on a separate thought, something Steve Marsh told me, the challenge with dropping your price to clean for someone that really doesn't appreciate you is that while you're cleaning that cheap client, a good client may call and you miss out.