[dkokelley]

Another thing you can do in both this situation and for your company in general is plan on raising your prices.

You've said that you are operating on razor thin margins. Raise your price and possibly get the attention of the clients of the higher-level competitors.

It's also a kick in the rear to your current potential client that "you are worth it," showing them that this is a good deal for them and that what you're offering is clearly a steal at the present time.

Whatever you do though, don't "threaten" to raise prices on them if they don't call in the next 10 minutes. Just let them know, "We're planning on raising our prices about 15% (made up) next year (quarter, month, whatever), but if you decide the other guy isn't what you need we'd be happy to work something out for you. Just let us know soon."

Goodluck!