I use my laptop, and a MOTU896HD, with a handful of mics to do demo recordings for £10 per hour, it's waaaaaayy less than half what a studio in this area costs and most people say the results are comparible. Better in some circumstances.
Bands often feel happier playing in their houses or rehearsal rooms than in studios.
I don't pretend to be a studio, or profess to being able to offer what a good studio can, but people still tell me I should charge more for what I do. But I won't.