Too cheap to be worth it?

I hate my job. I don't mean I don't like it - I genuinely hate it.

The job has made me ill, it conflicts with my own moral code and it is pointless in the extreme. If I actually do the job I'm employed to do, I will be over-ruled by people with 'friends in high places'.

Without going into detail, the job has opened my eyes to the type of corruption that is apparently acceptable in local government.

In short - I want out!!!!

Some of you may recall my attempt to find self employment as a photographer. Well, I want to try again as part of a wider range of employment options. I'm also undertaking a proofreading course as part two of 'The Plan'.

The problem I seem to be currently experiencing is pricing. I live in an area with a lot of photography students looking to earn a few pounds to top up their income. This means the customer is swamped with cheap (not inexpensive, which implies quality at a lower price) photographers offering cheap, or even free, wedding shoots.

This, obviously, makes it difficult to find work.

I recently read an article that suggested I should charge a higher price as this makes you stand out from the crowd and implies a higher quality standard of work. Now, I'm always happy to earn more, but will it take me out of consideration for most potential clients?

Do I need to find a new way to market myself to the higher spending clients? If so, what is this marketing method? I hate the sales side of things, but I know I'm going to have to push hard to break away from the herd. 

I intend carrying out a few model shoots during the upcoming weeks and will update my portfolio with the type of images my competitors seem unable to offer (I visit opposition websites to assess quality). Hopefully this will give me the slight edge I need to get moving forwards.

As far as the pricing goes, I need to give this a lot of thought and get feedback from everyone I know. Does price reflect quality in your eyes when seeking a photographer? Is it better to do inexpensive packages and hope someone wants a better service, or do I charge more on the basis I'm better than the 'Uncle Bob'* photographers out there?

The next few weeks are going to involve a lot of market research in the hope of answering this question. If you have any thoughts, please let me know.

Thanks

* Uncle Bob was the subject of an article I wrote for a national photography magazine last year.