> My standard practice has always been to apply a high local preference
> on customer-announced routes, medium local pref on peer-announced
> routes, and low (but still higher than the system default of 100)
> local pref on upstream-announced routes.  The logic behind this is:
> "I'd rather get paid for traffic than exchange traffic for free than
> pay for traffic."

Which is good design, but still falls apart if, as per the OP, your customer is 
deaggregating towards their other provider.  Longest-match happends before you 
even get into the BGP best-path algorithm, local-pref doesn't get a look-in.

Regards,
Tim.
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