While at the surface, that seems rational, it is seldom a good business practice. Generally, when someone suggests I meet some internet price, I smile and say, "Ok, I'll meet that price then lets add $6 for shipping. Pay me now and come back in 2 or 3 days, it will be ready".

The main problem with the aforementioned example is that someone was treated differently. In your example, they are from another town, and presumably are not a regular, and therefore have probably contributed very little to our cause. I am fair to a fault. I cannot afford to have my most loyal customers feel that they are somehow paying a penalty to do business with me. My prices are not random-I watch the "going rate" like a hawk. We are seldom more than a few $$ over anything but blowout (or stolen) stuff on ebay... But to reward someone who takes up more of my time haggling with a concession...time I could be spending more productively...well that doesn't make much sense. I do, however, reward people who help my shop by doing local volunteer work with a shop shirt on, or who help with trail maintenance. They get discounts based on hours worked.

There's that emphasis on relationship again!