Not really, just like any industry there are quality ''products'' and cheap ''products''. If there were no amateur doing the work for $100, people who cant afford $1000 shoots would still not buy it...
Are the cheap Ipod replicas killing the Ipod market...I dont think so.
You simply connot equate cheap products, with cheap services. They are not the same. I provide a service. I design, fabricate, and repair jewelry.
I am predominately on the wholesale side of the industry, meaning I do work for the retail stores. I work in a building that has 4 other jewelers that do the same thing, wholsale repair for retailers. I am the best of the bunch. If you want quality work, done right the first time, you come to me. I am doing quite well in my first 5 months of business, because of my reputation. My biggest problem is dealing with complaints about my prices. Retailers are more than willing to use me, but they want my quality work, at the prices of the lesser qualified trade shops. To compete, I am forced to undervalue my labor. Mind you, I don't meet there prices, and often when someone complains, I refer them to the other shops.
Furthermore, I receeve plenty of work that was done by those shops to fix, and redo the job right. I am expected to give the customer a break too! I smile and tell them how much money they would have saved, coming to me first.
They slowly come around. But I am still limited in my pricing. It seems to me the reason why the other shops are still in business, is because the customers are driven by price, and will accept lower quality work because they are getting it at a low price. This is something that is very hard to overcome. Slowly I am seeing where I can raise my prices, an I am making adjustments gradually.
This is the same all over in any service industry. Prices become tied to the lowest player.
The way I see the art photo field, is you can sell a matted print for $25. You have plenty of cheap venues to sell in as well. What the artist will find, as his work gets better, and he/she is selling a ton at $25, the price can start going up. As your quality and prices rise, you move yourself out of the street vender arena, and move towards local small art galleries. If you are doing well there, again, you go up the ladder. Raise your price per print, and move into a better market for it.