That argument doesn't fly.... I am in a town of 2200 people here, with the "big city" (80,000) 10 miles away... I used to think like you do, and almost went belly up. Now that I have changed my pricing, and the way I do business, I have more work than I can handle, and grossed well over $120K this year with a net of over $50K. I run an honest business, I hide nothing from my insurance companies, or the IRS. When I went to "flat rate", my average ticket went from $125 to $311, I only lost 2% of my customers(that I really didn't want anyway), and picked up almost 100 service agreements as a "one man band". 2007 will be another banner year, and I will have to hire a tech just to keep up with the demand.
Its not about doing it cheap, its about being the best. period. Most people really don't care what it costs if they are getting the very best possible service, and installation with top quality equipment.
I only did about half that this year... but give me another year or 2.....