I work in another industry where the little "Mom and Pop" stores are competing with large retailers who get a significantly lower Wholesale pricing for the same product. But personal service and "guided" purchasing help are not included at the the Giganto Stores, where they are at the the "Mom and Pop"s.
I realize that when I buy a tool from an LBS, they are looking at a probable loss of repair business that they might otherwise be supplying. How can anyone expect them to subsidize this loss by discounting the tools in the first place. Since there are some tools like headsetting presses or re-facing/re-tapping tools and services, that I couldn't ever justify acquiring for myself, I need an LBS around to provide these services. I think of the higher LBS costs as a sort of "subsidy tax" to keep this resource around for those times when I need them. I try and source stuff through ther local LBS before I look online. if they can't help me, then I feel perfectly justified in using an online retailer.