The reason I think I'm competing with Wordpress is this...
One of my clients is a digital marketing agency, they specialised in SEO and Marketing but started offering websites. They've been using my CMS in some shape or form for the past 3-4 year. They are keen to compete with other web designers etc in the local area and as a result the have to keep their prices around the same level as their competitors in order to ensure they're not losing work. They have mentioned on numerous occassions that they're keen to start using Wordpress because 1) sometimes their clients are asking for it and 2) they have this misconception that because it's free to download it's a cheaper solution. If that particular agency decided to stop using our CMS completely and jumped over to Wordpress, our business would lose around 35% of it income. (yes, I know, having a single client take up a large chunk of our income is another issue which we're working on).
We've been working with them and other agencies for a number of years now, and the way we've been doing things has been cost effective for our clients, and it's worked well. My issue is that I'm finding that the more and more sites we're doing the more we're supporting them, and as we didn't specify any support arrangements I'm finding large chunks of my day are being dedicated to supporting sites rather than working on sites that earn us new money. That's why I've started to looking providing a support package, so the client has the option, but if they choose not to have the support package, then it's clear to them that the site won't be supported after X period (1-3 month for example). This way, clients we have now can still operate in the same way and still be competitive, while also having the option to purchase a support package.
I just have to be careful with costings. Let's look at a simple 2 template website, with a blog. Using our CMS a client would pay us around £500 to create the HTML and integrate it into our CMS and activate our blogging module. Our client has to create a design for the site, insert the content on behalf of the client and manage the project. They might charge £250 for the design, another £150 to insert the content, and £50 to host the site for a year. That brings the cost to the client to around £950, for a fairly basic but well put together website with no SEO. Yet one of their competitors is offering almost the same product (with SEO) for £600 (I have no idea how they're offering stuff at that price)!! So you can see why that particular client is raising questions with me, because they want to compete with their closest competitor.
On the other hand, when you download something like wordpress, that's it, there's no support, and having looked at the wordpress site they're charging $15,000 a year for it.