Truthfully, the best way for a business to STAY in business, even during the rough times (and I'm not saying it's foolproof by any means) is to diversify and to set yourself apart in some way other than price.
A place that only sells quilting notions, supplies and fabrics in a brick and mortar shop will feel the brunt much worse than a place that sells all of those and offers classes, or also sells online, or also sell and repair sewing machines, or also sell other crafting supplies, or also does long-arm quilting, etc.
Having something else to fall back on apart from just the one thing can mean the extra revenue is enough to offset higher prices somewhat, and it can mean the difference between keeping your doors open and closing them forever.