Salty, I feel your pain. I have had to adjust my business practices several times over the years due to what I considered unfair practices. For example, I have a wholesale soft plastic hand pouring/injecting business in Mexico (domestic only, no exports). Several US factories sell their seconds by the pound for recycling (they use the stuff to make shoes and such down here). A few guys go through the "garbage" and pull out tens of thousands of usable baits (Strike King, BPS, ZOOM, Culprit, ETC) repackage and sell them for pennies. Naturally, I informed the brand owners of what was going on as I am sure their legit sales must be affected. No action was ever taken. I raised my prices and started making more unusual shapes and colors. Sticks used to be my bread and butter, now it is creature baits.
One thing I learned from that is that price is never a good way to compete. It isn't easy to find a customer base that appreciates consistency and quality, but once you do, you have a client list that is pretty inflexible (meaning they won't leave the brand for a few pennies.
Right now I am recovering from a car accident and shoulder surgery (that is why I have been hanging out quite a bit here) and looking into getting into a crankbait building business. I considered buying blank bodies, then making resin baits, now I am thinking of going to wood, maybe balsa. Right now, my price is a secondary concern. I have customers who trust me do make something worth the money. I have to ensure I fulfill the expectation. It might take a few months, but I believe I can apply the same practices that have made us successful in soft plastics to making wooden cranks. Most important, I need to to it in a way that others will have difficulty imitating. I am not worried about the Chinese plastic imports, I want to compete on quality and value. Hope something comes of it.