Yes, price yours higher. The quality will speak for itself. There's a thread going on elsewhere on just this topic - would you rather buy a cheap snow shovel or a US Made one that's more expensive. I prefer investing in something that will last. You aren't going to find a hand-stitched stocking made in China. I mostly do woodworking and you can't find anything like what I produce except from another craftsman of the trade. There's no problem with people buying the cheap Chinese shit if all they care about is cost. Think of it as placing your products in a good home. Somebody will prefer quality over price.
The other point to make is that the profit margin on the cheap stuff only works if it is sold in quantity. A higher priced item with a sales commission will bring in more for the store owner than the crap will. And, if it doesn't sell, you can take it back and try elsewhere with no cost to the owner. The Chinese shit just has to be boxed up and stored for the next season - it's already paid for. There are a lot of advantages to commission sales. I've got work in a shop 60 miles from here that didn't sell before Halloween. The store owner wanted to keep them and get them out earlier in the year next season and I agreed (found out about the place too late). I've got the plans (my own) and can make some more for local use.
Basically, I'm saying don't TRY to get the owner to eschew the crap. Put yours up against it. And there's no "hustling" involved - just a persuasive argument to get the opportunity to display your work.
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