There is a shop near where I live that is similar to the one in this article. I bought two new tires and tubes for $20 but thats about it. If I was looking for tubes and tires cheap, for an old bike, I would stop in, but otherwise, I dont. If it was a combination old/new shop, with some availability of slightly higher priced items, plus availability to have things I needed ordered, I would go more often. As things stand, I stop in the shop where I bought my mtb, to have things adjusted, or if I wanted to look at the bianchis or fujis. If I need something like koolstops, I got to another LBS, as the other shop doesn have them, or I order online.

As it stands, I often feel guilty for not buying a more expensive bike at the shop I stop in at. I was asking about road bikes once, and asked about getting used, but the guy at the LBS said I should get a new one fitted to me, so I know what its like riding a properly fitted bike. He pointed me at $1000+ bikes. I would think he realized that I wasn't spending that much, after my purchase of a mtb was sub $400. They still show me very expensive bikes whenever I stop in. I feel like a cheapskate every time I go to that specific shop.

I guess what im saying is the guys idea is good, but that he is missing out on other possibilities. I think you can sell used and inexpensive bikes, as well as more expensive ones, and make sure to give people the feeling that you appreciate them even when they buy the less expensive bikes.