I had a similar experience with a client a long while back who was trying to sell coffee online. They had a good product, really tasty arabica coffee, but they had too much ego and wouldn't adapt to the market.

They insisted on setting a high price and believed that the market would see the value of the product and be willing to pay even if the package around it wasn't up to standard. Needless to say, they went out of business after 3 years.

It's quite a sad story because I think they could have been a major success if they didn't have too much ego and were willing to listen.