Pofarmer,
We are just in the process of finishing up our new shop on our farm. My wife is a cabinet maker - fine furniture maker and we decided she should be able to pursue something she loves doing in her OWN shop while I am semi-retired (ha ha ha) farming. Basically the idea is to have a few different things (we have some other ideas as well) bringing in residual income while we farm and sort of retire during the winter months.
My wife was concerned about the competition as well but I told her just do the best job you can using your artistic skills and your learned skills and don't worry what people say. Please yourself with your work and the rest will fall into place. So far she cannot keep up to the requests. The odd person that has said "I can buy that cheaper at X" we tell them politely "Then perhaps you should go buy it there." and leave it at that. One of those people we met a time period later and she said she wished she had paid more and bought it from my wife and another asked my wife if she could "repair" the item she had bought. We declined.
Quality has its own merit. Some want it cheap and some want a handmade work of art that is worthy to pass down through the generations. We deal with the later and give the others directions to Wal Mart.
Regards,
Dave.