Do you mean potential client? Did they open a contract?
That's one way to flex getting someone to work for free. Very unprofessional. If they don't want to work, no need to write an essay about your pricing. I'd block someone like that and be lucky I didn't work with them.
As for the competition, good luck to that freelancer getting paid at all. The client will just use him and never pay. It's not a sustainable way to work.