John,
I am going to open the usual can of worms but there is allways some one cheaper than you. And of course it depends where you live.
I think you are too cheap generally apart from the £200, thats a good price.
Get yourself on a course or 2, get some diplomas etc, it allways helps, and if you are near enough, go and quote. I nearly allways do, and have found that if they like you, you will usually get the job, you can allways drop a bit if you know the other guys price but don't get into a price war, that way you will lose.
Tell them your not VAT registered and not a franchise, if they want a real scare get them to ring SMaster or Chemdry.
Regards
Murky