A local baker, who works out of her home as well and has been "on the scene" longer than I have has been using intimidation and threats to get me and others to try and close my business. Using phrases like "you don't want to piss me off" and "I would watch your back". She goes so far as to tell me (and others) that our work isn't comparable to hers and we should consider shutting down before making fools of ourselves. Apparently, she offers her cakes for less than $1.50/serving (she insisted she charges less than I do, and that is the lowest I will charge).
The icing, so to speak, is that she has stolen at least 3 of my clients by underpricing me, then uses my designs to create their cakes. While I understand that my ideas aren't protected in any way, her complete lack of integrity and the sheer pettiness of this is what lead me here. So, for those who have experienced this before, how do I handle this situation? I'm more than sure, because this is a smaller, rural community, that she'll pop up again. Thanks in advanced!