Word of mouth and telling them how good you are are good strategies - but be careful competing solely on price - some people don't quibble on price. They equate high price with high quality and vice versa.
If you compete on price, what message could you be sending to potential customers? If you don't value your services, how do you espect your customers to? "I don't think I'm as good as Joe down the road, so I charge you less." "I'm a beginner so I charge less while I learn on your job" Not the message you want your customers to get.
It can be difficult to increase prices once you have established a lower rate for the job.
If you compete on price, you risk attracting only those customers who base their buying decisions on price. I'd like to have at least some of those who buy on quality.
(If everyone bought on price, we'd all be driving Skodas - some folk want a Porsche - and are prepared to pay for it)
So be talkative, find out about customer needs before quoting a price first (as I'm sure you do anyay) - Convince them that you are the best person for the job and price becomes less of an issue.
One way to move to the next level may be t attract more customers - another may be to attract different customers.
Of course you may be unlucky and be in a very price sensitive market - but a lot of markets may be less price sensitive than you think. It's always a judgement call - part of the joy of being self employed.
If you are interested in a bit more about what could get people to buy, can I recommend "Influence" by Psychologist Robert Cialdini. Readable and should prompt some thoughts.
Your 20 business cards strategy shows you know the power of referrals and are open to different strategies - Always a good sign.
Good Luck in your business.
Neil Chambers
ProjectCoach.com
Bristol, England