To your point and having sold for a bunch of years I decided I'll never lead with discounting. What I've done is to let my customers be my sales force. For every referral they make I discount 10% toward their next service visit. The value of a 100% discount is limited to $300.
Also, from a market standpoint I've refocused in hi rises, condos, and apartments (for apt I work directly with the client not the apt mgr to get paid immediately). These are places TM/HWE guys can't service (easily). Also, I've networked with real estate heavy hitters and moving companies to help with "make readies" and "move outs".
This redirection/increased focus has help me win new business that I'm certain will sustain me for years to come. And just like you I get calls from young families with babies who want an organically cleaned carpet. They find me on the web/twitter/facebook and I believe over time will be the rule and not the exception.
Best of Luck My Friend,
Mike
www.centexgreen.com
PS - Doctors' offices have also been a good target
