Hardy
I have been tempted to get into this conversation and now the time may be right. I teach for the School of Business of saint Leo Univ. and have had a little marketing so as to keep myself from being a complete idiot.
Here is my take.
You can't compete with Cabela's because their product is mainstream, you can't match their volume, therefore it would be hard to beat them on prices. If you could find a source that allows you to buy the product at a reduced price, everyone would be doing it including Cabela's and the price would be even lower.
You might try to put together a "buyer's club" with a featured product each quarter. Find shops that because they are not near you are not your competition and then organize a bulk buy of one or two popular products.
I like Joe's recommendation to bring the customers in on a loss leader and then sell them the "stuff" that goes with it.
A technique that has kept hobby shops in business is employing folks who are sharp on the hobby. You can go and buy all of the crap you need to build and fly an RC plane on the Internet. But you can't buy the expertise that is available in a hobby shop assumng the shop is staffed by some knowledgable excentrics.
Hook up with some local groups which are into the product line such as re-enactment groups or hunting clubs.
Offer something that Cabela's has deliberately declined to touch such as customized/accurized,or otherwise fiddled with revolvers. (Cimmaron may be the model here). You may be able to offer the wares of local craftsmen. I am thnking, possible's bags, custom holsters, and such. I used to turn out a pretty good powder horn from the horn of the Guamanian "caribou" which was really a cross between a black angus and a water buffalo. Beautiful jet black horns that polished up like a highly shined shoe.
Sell good condition used stuff. Or sell a reliable supply of parts. Frames are exceedingly hard to come by.
I think a lot of guys (myself included) have to drive quite a distance to go shooting. Purchase of a revolver could come with range time if you have access to a range.
I wish you luck in the endeavor. Two factors are working against you as, I am sure, you well know.
1. You can get good advise and information very quickly on the internet.
2. You can get great prices at the "big box" stores.
I don't envy you.