I would reply with this post:

Thanks for the heads up on your fantastic deal.  I am aware of the reduced fees being charged in this parish by one individual.  This was a result of his/her loss of most of their clients after trying to go out on their own with only 9 month of abstracting experience.  I heard the major complaint was failure to return orders in a timely manner and not returning phone calls.  After missing several items (the client did not find out until after closing, 3-6 months later) this discount abstractor was forced to lower their prices to try to drum up business after the devastating loss he suffered. 

If you decide to use this abstractor, you may save a few dollars in the short run, but everntually you will be spending more time on the phone and with your underwriter to justify any implied savings.

We are confident that you will either stay with us (as we know you are happy with the service) or you will eventually resume using our services as our prices are in line with local professional abstracting services.  Please be advised that we will have to charge extra fees to  update any title work done by this individual as we want to be certain you are receiving a product free of defects.

Again, we will be unable to match that price, as we currently employ abstractors with 7+ years of experience (on average) and they would be unwilling to take a 50% paycut to meet your prices.

Something along these lines.  Plus I have learned that a cheap client is a client you want to get rid of.  If you lose them its someone elses problem now.

C.