I agree, you may have to look harder to find work but it is out there, if that guy can charge so little it is most likely because he is doing so little, and probably working alone, or even worse as a second job. Most of those guys don't last long. what I do when someone tells me that someone else is doing it for less than it would cost me to do it, is politley ask them if they like his work, is he insured, and do they know that he is cleaning everything. Most people will say yes to those questions even if they don't really know, but I have planted the seed in there head, and maybe they will look closer the next time.
Don't get discouraged, and don't sell yourself short. You didn't get in this business to scrape buy on the bare minumum, so don't charge that.