The only difference between a LBS and a mail-order place is the service, and any owner that doesn't recognize that is going to run himself out of business.
I have a shop right up the block from where I park for work. They work on anything, but their forte is small parts. There's one 6 1/2 miles from my house, and they NEVER have a part I am looking for -- unless I'm looking for a water bottle. I'll occasionally take a wheel problem to them, although only if I don't need it done quickly; because they will have to order even spokes or bearings. Finally, there's a shop about 9 miles from my house, but I never go there because although it's in a highly-visible location, it's also impossible to get in and out of their lot. Apparently they pay a premium for the location, because their prices are out of sight. Finally, there's one about 20 miles away. The shop is clean, they'll often work on something while I wait, they automatically give me a club discount, and they're the only shop in the area to carry recumbents and recumbent-oriented parts.
Guess which shop I like to use?