This is a tough situation. Unfortunate for the LBS as we know it. Talk about out-sourcing. As much as we wouldn't like it to happen to us, the way we buy goods is simply changing in a big way. However, the fact remains that if I had to pay LBS prices for everything cycling related, I would simply not be financially able to participate in cycling anywere near as completely as I do.
Take cycle wear for instance. If there is anything as overpriced as lycra shorts and jerseys I am not aware of it. There is absolutely no way that I can afford to drop $200 plus dollars on ONE cycling outfit (shoes, shorts and jersey). This is where I apologize to no one for being a dedicated bottom-feeder, blow-out internet sale shopper. As a matter of fact, I was so jazzed when I found suitable socker jerseys at WallMart for like, 12 dollars apiece. All they were missing was a couple pockets in back. $50 dollars or so is a high price to pay for a couple pockets. I'll put my stuff in my bargain basement trunk. Thanks very much.
Don't get me wrong. I like to pick something up, pay for it and take it right home as much as the next guy. But more often than not, I regreat paying 20-30% more, plus sales tax, for parts and accessories at the LBS.
Then again, one thing most LBS have, that most .com stores don't, is a parts bin for traded out, but nearly new components. This is where I have no problem holding up a virtually new but technically used handle bar, stem, etc. and really haggling - to the point of putting it back down and starting for the door. After all, the bike owner probably just gave it to the shop, so in most cases it is pure profit for them. Last week I got a NICE pair of aluminum risers for $10.
DanO