You are a Designer if you have Photoshop

I just got a copy of Photoshop CS4 about 2 months ago and going hand in hand with my art classes at school, I have built up enough experience to design your professional corporate logo and brand identity. I have experience in the design and art field and have a great understanding of the history of art and its principles.
Client: Do you at least have some work to show us?
I have a few painting I can show you and a couple of sketches, but I don’t really have any logo designs for you at the moment simply because my other projects have been keeping me way to busy. I can do the entire branding project for you within a budget of $50.
Have you ever come across anyone like this? I know I have and I do constantly and it drives me up the walls. Not only do these people over promise, they under price design. It’s because of them that a client sometimes states, “I can get the work done much cheaper with XXX,” and that’s when I say, “why do you keep bothering me then?”
Am I wrong when doing this? I know everyone started out somewhere, but I mean we put in a few years worth of practice before we even started looking towards any payment for our designs.
I don’t know if I’m the only one that look at it this way or do you too sit with the same problem as I do? What do you do when you come across people like this?
Would love to hear your opinion on this.