There will always be this scenario, which you have to get past and definitely don’t let it effect your aims.
You get this in almost any industry, its just competition which will come in many forms, the "why's" are rarely important as there is always a way round it you just have to find it.
Try perhaps raising your profile, increase your marketing, try different area's, offer a different service or try a buy one get something else free, perhaps another service you can eventually sell them.
Sometimes you have to invest in your market to be able to work and grow in it. Once you have a good client base, you will find that these people simply don’t matter.
If you find that you really cant compete at their level, then don’t be at their level, somehow find the way to be better.
The above is meant to encourage not offend, sorry if it may sound a little critical.
DP