Kind of scared about small area market...

I am in a very small rural area and work out of my home. Lease and rent on spaces 'down town' is rediculous! And this way I can kind of set my own hours. The people I bought out when I began had an emc 10 which I have upgraded to an amaya xt. They charged $1.30 per thousand stitches, so I have always done that on smaller designs with a break on bigger jacket back things etc. And over the past 4 years have had different people tell me different things about how they charge---all of them are in a larger city type area where that goes! I even have been told that as embroiderers we are a 'skilled labor' type thing that our time is worth at least $30 an hour.
Last weekend, I went to a local Christmas craft show/bazaar just to look around. There was a lady with her home machine doing free personalizations on Christmas stockings that she had made and was charging like 4 or 5 dollars for. Another had a table full of hand towels and baby bibs that she had made on her home machine again charging 4 -5 dollars a piece. And yet another who was selling decorated sweat shirts and things for almost less than I can even order them in wholesale! I think on a couple of those that looked at I figured that I would have to eat the cost of the sweat, and shipping and over half the stitching! These people are all using designs from places I get mine from. I am struggling right now, my Christmas rush has not 'rushed' as it has in years past, and am wondering ...HOW IN THE HECK can I compete with 'suzy homemaker' just giving away her stuff! I do offer tackle twill and corporate logos etc. but right now that stuff is kind of at a stand still.
I absolutely love my amaya xt, and know in my heart that the quality of work it produces far out does 'ole suzy' BUT right now the consumer is looking at $$$$$$ and not end product.
ANY suggestions as to how I can bring this out to customers and/or maybe something that I can come up with that may be a little on the unique side??? Looked in to the sequin attatchment, the cost in it is not bad, it is all the othere stuff I would have to add to make it run --compressor, bigger hoops, more room for the stuff and the noise it would bring on, etc etc. now is not the time for a huge investment for me.
We all need to hang together and get this industry to stay on it's feet! I am gonna talk outa both sides of my brain here too. I do believe that more young people need to learn to sew, and not just to make a quilt! 4-H was big when I was young -garment construction and tayloring etc. that is how come I am in this business! Embroidery is becomming a huge part of the home sewing trend, I just want to know how to deal with it......