Well, if the answer is yes. I would still send them an estimate of what it really would cost you to do the job. Don’t undercut yourself. You would wonder why waste the time? It’s simple, explain what they are getting, explain the resulting value in your photography, they are in no position to say your fee is too high. When they get a bunch of estimates from other photographers. They might still find that your service is still worth the money. And end up hiring you. Because you never know what other photographer’s estimates will be-chances are they’ll probably get the same or slightly cheaper but not half of what you are charging.
I think the fundamental idea behind this question is this: You need to try, even if it means you know you are more expensive. Because without trying, you have already lost the bid. The key idea here is to establish a system in terms of creating those estimates quickly and efficiently, so that you don’t spend too much time doing them. So you’ll never run into a situation where you think you’ll be wasting your time creating those estimates.