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If you're hands on, you know what you want, you know the text and layout you want, you can go cheaper. If however, you're looking for a full service design/marketing/theme creation then a bigger company may be the way to go.
Don't always be governed by price though, as alot of designers have to price with the outsourced/ I can do it in 3 days for $300 people.
There's some good designers around in the $600 mark for reality style, but there's some serious shit about aswell. But if the crap designers deliver on time when the client wants it in 2-3 days. Then it's the clients fault.
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