I've stopped in at a store a bunch of times right near work, which has Merckx, Seven, and all kinds of other ridonkulously expensive bike frames hanging over the counter, no clothes except for Assos, etc. etc.

All I was there for was a few cables, some loose balls to repack bearings, brake shoes/pads, and the guy was absolutely pleasant and helpful about the whole thing. I know there were people there who were paying him more for much more exotic stuff, but he had old beaters in there for repair as well as really expensive gear. You do need to cater to the expensive tastes as well as the pedestrian ones to make a marketplace satisfied.

And, FWIW, you can pick up assorted hybrid bikes for less than 300, which is a reaction to the fact that people starting don't want to buy a road bike, they want flattish bars, and a padded seat with a triple chainring and platform pedals. They may eventually upsell to a road bike (either new or used) and will probably be ready to spend more $ when they do, and will appreciate what they are actually paying for at that point.