Looking at it purely from a business point of view (this is The Business of Photography area after all) rather than from the artist/creative point of view I find it short-sighted verging on arrogant to say that Sears, et. al., aren't your competition. Any company or person that shoots a photo for someone else is your competition. They have an impact on your market, and they have an impact on prospective client's perception of the industry as a whole.
I paid $3000 for basic wedding coverage but for our Christmas photo and our Christmas Cards there we were at Portrait Innovations.
Now, it wasn't my idea. I had been contacting many of the portrait photographers in our area but my wife made the appointment. I figured, what's the harm. $159 (shocker, not the $9.95 that my wife was initially interested in) later we have more pictures than we know what to do with, the the 50 Christmas cards we needed, all images on CD (hi-rez on the way) and a print release. The local photographers who would have actually given us better results than PI wouldn't cross the street for less than $450. Yea, I could have gone with CL for $100 but compared to the images and service from PI there was no value there.
Yea, Sears may be the Sears of the photo world and you might want to be Nordstroms or a small boutique but their business plans are strong and their market influence huge.
There are several folks out there, CDI comes to mind, that have a very business-minded point of view, but far too many that put themselves out to be pure artists who function in their own world of non-competition.
-F
Fuji convert - Ping me if you have any Fuji gear or legacy glass you're moving.