So Im in the process of building a new bike. Yesterday I went out to spend some money at some LBS cause I like to keep my money in the local community. But what I found was that the first two places had more money then they needed and didnt want mine. Im not one to beg someone to take my business, so I walked out and went to the next one.
The first shop was Cupertino Bikes. I wanted to see about having them build my bike. Before I could even bring it up, the employee had a bad attitude and just said, "what can I do for you". That was his response to my " Hey, how ya doing today". So I said nothing, have a nice day.
Next was the new Trek Superstore in San Jose. I walked in, checked out the entire store, twice. Stood at the customer service counter for 3 minutes. In the mean time 2 other customers came in and got helped right away, friends of the employee's I guessed. So Im in the store for about 7 minutes. There are 7 employees that I counted, including the owner who just walks right by me without even a hello. Did I mention there was only 3 customers in the place?

So I can see that they dont need my business either.

I guess the $5000 I spent there last year was nothing. I wont spend anymore.
Store 3 in Summit in Los Gatos. Bingo, immediate service from 2 different employee's. I also went to Performance and got help right away.
Today, Im off to Mikes Bikes in Palo Alto which has always been a great shop for me. Last week I was very pleased with Bicycle Outfitters in Los Altos, they also had great service.
So I think its not always the internet business's that take business from the LBS, I think it is the poor service and attitudes that some of the LBS portray.