I'm in line with visiting the craigslist seller, too, but for different reasons.
GO buy a dozen of those $1.50 eggs find out what sort of conditions they are produced under. Smile and be friendly and get them to tell you all about their operation. See what is the reason for the low price. Chances are good there's something low grade going on in order to offer eggs for $1.50/dozen. Then decide to compete on those grounds.
Can I offer a few thoughts off the top of my head? Then I'll get my coat.
- First, I'd steer clear of craigslist. The folks who buy $1.50 eggs off of the "rag sheet" will often beat you up for that same $1.50 and aren't liable to be very loyal. So don't attract them.
You are interested in a "select clientele," so to speak, ones who look for value.
(Think about it - with all the cars to buy, SOMEONE chooses Lexus and Cadillac. These are the people you want.)
- It seems like a good idea to put a little into the packaging of your package, too, so it is attractive and distinctly yours. Make it look like its worth your price.
- Work to create a loyal following of consumers. Without bashing this other seller, let these loyalists know why your difference is better for them.
- Look at this as selling in a niche market. Decide who your best customers would be... then go after them with good promo materials.
In short, I guess I'm recommending you respect what you have as valued - and those of the same mind will come round in time to do the same. There is always someone to buy off the dollar rack - and someone to sell to them. But are these really the customers you want, or the seller you want to be?
I'll get my coat, now...
Good Luck.