This happens A LOT in the creative arts, people expect freebies or other creatives undercut one another. That's always been the problem in engineering consulting (and the reason I left), is that there's some guy in a garage undercutting everyone else and clients expect freebies because they once paid you some nominal amount.
I was talking about this very topic with my niece this weekend. When you make very little money people will exploit you. When you make a lot of money people will think you're valuable and pay you more. What's the difference between a $50 bottle of wine and a $10 one? Not a whole lot except the price and perception that the $50 one is better.
Perception is everything.