We all have experienced competition, in some form or another. In business you can undo any worries of competition, but for most of us competition is a reality (and in most cases a painful one). It is not a good idea to worry greatly about your competitors, largely due to the fact that it is up to you how good and successful your business will be - your competitors don't control your business operations.
If you sell any products or services, you have probably came across a few people who have seen your prices and then immediately said, "I can't afford it". This surely does not make you feel good, who wants to hear their products or services are not worth it the price. Think about it, if a person is considering your products or service but is turned away because of your price - there is a good chance they think the deal is not worth it. So one thing you can do is lower your prices, but once you do so - you will probably get similar people saying the old sentence "I can't afford it" and this will become a cycle. Rather than worrying and lowering your prices you may want to consider targeting better people and telling these "better" people that what you are selling is actually worth it and a great deal. You want to make what you are selling worth paying for, that is the goal.