My guy (who runs a business at his house) is 2x cheaper than anyone else in the valley. I've had time to verify his quality, and it cant be better. The first time I used him, I brought him some "mostly" blasted parts that a friend did for me. He looked them over and said that he would do some additional blasting before powder coating. That's how I know he cares about prep.
Many coaters won't do piece work, either. For my latest project, I blasted all the parts myself (16 hours of work) and I got them 100% perfect. Blasting is the real time sink and money adder. The act of powder coating is easy and cheap (there is an art involved though). If I didn't blast these parts, he probably would have charged me upwards of $300. Since I blasted them, he's charging me under $100.
So I use him because he has fantastic quality, accepts piece work, and is cheap (and fast).
I couldn't blast the frame myself, so I had to rely on him to do it. That was nearly $200, but it was absolutely perfect. He sprayed around the Vin tag (you can't even tell that it was masked), kept the powder out of the important spots. Check out my CB450 (Sunrise) thread to see his work.
Point being, if they are cheap, they could be cheap because (a) they work from home and they want to get started with business and are just as high quality as anyone else, or (b) they skimp on the blasting.
Powder-coating without proper prep is as good as no powder coating at all. The best thing you can do is prep them yourself so that you can be SURE that the prep was taken care of properly, and then take it to the lowest bidder. This is where connections are handy and knowing your blaster.