I have to strongly disagree with what you've said.
If the only way for you to be competitive is to offer your services for cheap - you're not good enough.

No offense to anyone, but in the internet market, I've found that "non-price" competition ranks well above priced competition.
If you can deliver articles in 24 hours with perfect grammar, interesting style, and a smile on your face, somebody will pay you $20 for it. The best part? That somebody will refer you to somebody else who will also pay you $20
and give you regular work so you build an income stream.
Instead of being cheap - offer a one-time discount
Offering a discount to new customers is an alternative to being cheaper. I personally offer a 50% discount for new clients to give them a sample of my work and still get paid. So if they want a one-time deal, they get it cheap, and if they want to consider repeat work, they don't waste cash.
Even if you're new, having the ability to offer a discount makes you look much more professional than pricing yourself at say, $0.004 per word or $10 for a logo design. Who would you want to buy a service from? The guy who writes 1,000 words for a dollar and returns it to you a week later with crappy grammar, or the $10 guy who writes 800 words of information-packed, well written, unique content optimized for search engines?
Just sayin'

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