How to compete with chiromatrix for chiropractor web design business

I met with a chiropractor that started a new practice in my city last week. We went through what he wanted in a website and I upsold him on SEO and ORM services. We decided on a package that included about $1700 in fixed costs (not all due up front) and about $700 in monthly costs--this included a mobile site too.

He had to talk it over with his "finance person" before signing a contract. The finance person found http://chiromatrix.com. They apparently found a deal on there for about $350 for the site and $100 monthly.

Now there's no way I can compete with that and have it be worth my time.

They gave me a few days to come up with another proposal. My question is, how the hell do I compete with these prices. I know I can use the local person, better service, etc argument. Does anyone have any advice or been in this position? I'd be willing to take a hit on the fixed cost since monthly packages seem to be where the money is actually made.

I've encountered a similar predicament before but in my case I target the lower end stuff so I'm up against crap like Wix... Basically, I use the argument that my sites can support additional features (I use CMS solutions so I can add stuff via plugins etc.). That same argument might work although likewise, they have some stuff you can't really offer as they do seem to have some decent turnkey info for that niche.

I imagine you can probably win over the monthly contract argument though as for $100 I highly doubt they are offering as much as you are unless your markup is really high. Maybe contact the company yourself and see what they are offering and counter like that, best way to handle it IMO. As right now it's just a price comparison, not a true service one.