How important is it to you to maintain your margins?

I'm about a year and half into my business and still learning. I've figured out my hard costs and where I need to be in my margins, fee schedule, and payroll. My question is, how hard should I stick to my margins? If I am able to bring on a new client by lowering my hourly rate or per job fee, is it worth it? Will they then expect that price next year? This is a festival and I provide event services. If my labor margins (not including taxes or insurances) are in the low 40% range, and the job is a 43 hour job at $35 per hour, would it be better to knock that rate down to $30? $25? in order to gain the business and take a "hit"? Seeking advice for my situation and also curious to hear about your own experiences.

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