How can we charge £60 or £70 to clean a lounge when we're competing with £15 or £20???
Rant over....
You dont COMPETE with them, you compete with those offering a similar service, not those far removed.
A top professional Upholsterer does not compete with DFC etc, because he produces a far superior product, it is the same with everything.
You are looking at the cheap operator as the same as you, when he isn't.
That's why you have to present your business as being different and that's not only in the quality of the job but how your business appears to the potential customer.
If your looks the same as theirs, everyone will think it is, and will only see a difference in prices you both charge, in which case they will probably win.
Dave.