If he is charging such low prices and using a puzzi, id expect he will be out of business within 6 months anyway, so don't let it bother you.
As others said, focus on your own customers.
I'm a firm believer that many customers are created, by your own marketing skills. I know I have created customers who would otherwise maybe not had their carpets done for another few years perhaps, by having good leaflets with my own before and after pictures on, or by word of mouth of the good job I can do.
The guy with the crazy low prices, is creating customers, more likely than stealing the one's already on the market, as these people who are booking him, are bargain basement hunting types anyway.
hope that makes sense.