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You may have done this already but look for allies or sponsors who are not necessarily other studios. Whether they are DJs, Clubs, Barbershops, restaurants, caterers, wedding planners, etc. You'll be amazed at how these resources can be a postive addition to your business. Even doing shows just to introduce your dance studio at a restaurant once in a while can make a big difference. People react to what they see moreso than what they hear sometimes. This is a good way to fight.

Picture this: Students show up to this one studio and the director of that studio goes into daily negative speech about how that "new studio" sucks. This can easily be counteracted by the student saying either out loud or in their own mind, "Are you kidding me! I just saw that studio perform last night at my favorite restaurant and it was the most beautiful dancing that I have ever seen!"

Result: Students old and new go to new school.
That's what I mean, let your product speak for itself.

Hang in there, Yola. It will get better. Anyone else?