The answer to this question is extremely important for anyone wanting to do business on the web. Unlike a physical location, all your internet based competitors are right next door. Right now, make a check list of the advantages or insights your customers will gain by doing business with you.
Nothing sells like a testimonial.
You should strive to constantly collect testimonials from your favorite customers. Then include a short testimonial at the top of your index page with a link to additional testimonials. Offer your current customers a discount coupon or something for free to encourage their submissions. Unless you have deeper pockets than the big guys you shouldn't attempt to compete on price. Instead, concentrate on unique products or services that offer good profit margins.