Neil
As the great Bill Shankley once said " I never worry about what the other team are doing - if my team play the way I know they can - no one can beat them"
I know that is a very one dimensional way of looking at business but have confidence in your pricing structure , I personally would hate to be known as the cheapest , I would prefer to be known as the most professionally.
Also I never quote on the phone - meet the client , see how much work needs to be done - a one bedroom flat may take 2 hrs , it may take 5 hrs, how can you tell on the phone ? and at the end of the day people sell to people, so get in front of someone and you can sell the benifit as opposed to the cost.
Good luck for 2011 Neil (and every one else )