Image by Wade From Oklahoma via Flickr
The Babe of Business has a good article on how you overcome cheap imports by showing value and quality.
This is another area were your network can come in handy. While your big time competitors have big money to advertise their cheap products, you can use your network to get the word out about your products and the value and quality they have.
For example if someone in your group hears that a customer is planning to head to store “A” to buy a product, they can inform them that your store has a better quality product on sale that will last longer and you can do the same for them.
What you must remember is that you are not selling to the majority who think they are saving some money by buying something for a couple of dollars less but are getting far worse quality. You are marketing toward those who can see the value for the dollar, that they will be getting a better product for there money.
This is why it is so important to stake out your niche and take advantage of it.