I like to be competitive, but I still need to charge what I'm worth ... which is usually at least a LITTLE more than the pack. I expect to loose a few jobs a year to price - that's fine by me. Better that, than being unhappy at work. I need to make a living, but I also need to be taken seriously. If a potential client tells me that "so and so" charges less then I do, I always reply ... then get THEM. I charge more, because I am worth more.
BTW - I loose very few offers, and most times, it's not due to money - it's style, preference, or personal reasons.