I hear ya Gary and your right. What I volunteer for effects no other entertainers. The VFW never paid for entertainment for the picnic and probably never will even if both myself and the regular guy turned them down. I make it known when I do this sort of thing its a special donation and not my regular mode of business.
BTW I'm doing NYE at the VFW for a girl who runs a benefit for her Horse Farm. She takes in unwanted horses along with her regular business. I've done a few benefits for her and she will not let me do them or NYE for free. She understands business and pays me more than I would ask for if I were booking it normally. She also knows I do the picnics for free. Last year I tried to donate some money back and she said "No, its your business and you do a great job" She gets it.
I never have or would try to undercut another performer. We had a name for them back in the day.
And you are right about "Perception"
People associate price with quality. Sadly for some groups or "committes" its all about the price.