Yep, this incredibly low price is just for creating a rough prototype (which the client is typically never interested in). As I said, once the client comes to discussion table, I then bring the topics of well-maintained and commented source code, unit and integration testing, benefits of cloud hosting on AWS, etc. and then we start forming real estimates.

Saying that skilled services are a "commodity" implies that the work produced by two people across the globe would be interchangeable or "fungible". This is not true in most cases. There exists a considerable difference in the service quality when working with a team located closer to your place of business. This is mostly due to the differences in communication and cultural understanding when talking about the business goals, requirements, and changes after the fact. Repeating the mistakes of outsourcing made during the 80s and 90s will lead to similar outcomes.