I'd think that just making better home goods isn't really enough. She need to make contracts with other stores to sell her goods to balance her budget.
For example, my favorite bath towel company used to be sold at Target, but they are now exclusive to JC Penney's stores and cost $15+ more per item than before. So, unless she wants to be a full blown high price low volume artisanal product maker, she is gonna need too work as a wholesaler.