Correct!

Sell your grandma's special candies. If you open a service station, the price of your product (gasoline) is going to be controlled by what other operators sell for on the same corner. As Warren Buffett has said, "You're only as smart as your dumbest competitor." In other words, you are in a commodity business and must have the lowest cost in order to survive. On the other hand, if grandma's candies are really good, then over time you can build a brand name and achieve pricing power. Your candy customers won't be taking price bids on candy when the buy it for their sweethearts!