I have started multiple companies that began pricing web solutions in the price range you quoted. It's tough and it takes time.

My recommendation is to focus on word of mouth. You already have an existing install base so send them a survey and identify how they found you and why they like you. Armed with this market data, start creating profiles of the type of customer that would buy your services. Track more people who fit that profile--websites they visit, schools they attended, age demographic, type of solution they want built, etcetera.

The fact that you have high costs is a bit of a concern, but without knowing the specifics, I would say that you should aim for a 3-5% cost of sales figure. If you are not investing that much into your sales, you are probably under investing in your sales process. At this price point, volume is your best friend.

There is no short cut to get to your next stage. I have worked past this by asking my existing clients for referrals, really understanding the profile of my customers so that I can find them online, and understanding that its a numbers game--you get more clients when you try more prospects.

Meeting face-to-face is important, but certainly not the only way to do business. You just need to find the right profile customer that will appreciate your service offering and highlight the benefits without getting stuck on your remote location, or high costs.