Hi...
I definitely can understand how frustrating it is to be in such a competitive market and industry, especially when people seem to be using blue/gray/blackhat type of strategies that seem to be pushing them ahead.
My best advice is to stay the course and know that these get to the top quick schemes will eventually be dealt with by the major search engines.
In the meantime, try to learn as much as you can about:
Organic SEO techniques
Local SEO techniques
Social Media Marketing
Genuine link building, which includes building relationships with local businesses, communities, and blogs.
Building relationships with your customer base
You have to start somewhere, and like I have said before, Rome was not built in a day. So work on each strategy, and move on to the next. By the time you are done many of the search engines will have caught up to your work and your rankings should improve.
SEOmoz is a fantastic place to start, from the beginner seo guides, to the forum posts. If you think this will take too much time, consider becoming a client of one of the pros.
Best of luck