Affordable products that had relatively decent quality in a market where there wasn't a ton of choice. Though in the time since, a number of competitors in this field have sprung up, but not all have survived.
I'd try to go upmarket, that's the thing you have the stability and client list to do and he can't, he's trying to cement himself in the market, you have both feet on it. So you can capitalize on it.
Premium if done right can't go wrong if you have a bigger margin on it. It's like those guys with a lot of money that go into a store to buy a TV,
when in doubt pay more. Must be their unsung motto. Those types exist everywhere, in regards to materials as well.
Look at the things 3M offers in particular. 3M has turned upmarket as hell since the 1990's. Because people pay for it. The fact they patent so much is part of it, of course, I'm not even comparing the scale of the companies here.
But if done right premium is all about having a line that costs double uses the same production line and only improves like 20% upon the original product. Diminishing returns for whoever's buying, yes... But still better. It's like that reinforced umbrella.
In fact, did you know daily contact lenses are the same as monthly ones? I use daily ones for a month with no problem (dipping them in the same liquids, etc) it's the same thing or rather, there's no other way to do it using the same material.
But people still buy monthly lenses and pay a huge load of money for them. It's merely a "when in doubt..." catch 22 - there's no difference.
Don't leave the market you're exploiting of course (a lot of brands do that and somewhat fail, like Sendo, Huawei, Asus), price/quality is where the money is, but sometimes you need flagship to be taken seriously, Graphics cards are all about this, have a board that has 2 GPU's, huge cooling so the clocks and be insane and a shitload of RAM to entice people to buy your midrange thing that performs like any other. Same for cars (a Dacia is still a Renault), tyre brands (buying a lower range Bridgestone is better than buying a brand you never heard of)... etc.
I just don't advise creating a separate brand for it or focusing on these more expensive products as if your prices soared now, you keep emphasis on your price / quality range thing, but if extra quality is something you can built-in with a few more passes or using a different material on the same machines (for I don't know, bricks) then offer it as well. If you get big orders or not... market will tell, but you offer it.
Top range product shouldn't be your priority to sell, it should be suggested to a client you think appreciates it. That's like running a restaurant and recommending the most expensive dish.
You don't do it because it's your only good dish, it's because you know that client will appreciate you for it.
Look at Apple, they don't recommend you customise or buy the most expensive model, but they allow you to do it. It's not about having 50 products, it's about maximising your production pipeline. If you can offer something higher quality then do. But don't leave the sweet spot for a second. (but when doing higher quality sometimes you can decide something you were doing before that costed extra is now mature or cheap enough so you can apply to the cheaper product, and if that happens advertise it for all it's worth - being good at premium also means knowhow for budget products.
And yeah, build a company culture, opendays, conferences or teaching other people stuff about your product and the like promote that. That's also the thing he can't do at this point, you know that feeling of working on a company with space to grow, on a good place and known for the segment it's in? Even people working there are happier than the ones chasing after. I bet if you did a survey people working at Coca Cola are happier and stay more years in the company than the ones on Pepsi, and that's a situation where they're eternally chasing after... it's still the second best place to be if you sell soda. And the real issue is that the gap is not getting any smaller.
He's chasing after you, so he's not happy, trust me - there's an unbelievable amount of pressure when chasing after someone. And his objective is probably making it so that you aren't happy as well. Happy costumers, workers and in this case "you" being happy is also a way to keep people from your flanks from deflecting because it's an easy environment to work in, for that your workers have to feel they are not stagnated and are instrumental to the company, a piece of the puzzle if you will.
One thing that has been implemented on some industries with huge success was that people working on assembly lines or the products can ship in and give ideas of how to make it more effective, if their idea goes ahead and improves the product (or lowers costs/take it takes to build, dry, etc) they have a prize money. Sometimes it's the prize money that makes them think about it for a long time until they pitch it.
That keeps them engaged and a part of the company, even if you're the one that reaps the gains. That's very entranced in the car manufacturer business, probably the second reason the time it takes to build cars dropped so swiftly since the 80's after better machinery comes into play.