Very important. Always acknowledge everyone who walks in the door. Make them feel welcome and respected. Even if they don't buy something, there is a very good chance that person will return and spend money in the future. I've walked into stores where not one person said 'Hello, how can I help you?'. I may go back to that store to LOOK, but I will not be opening my wallet. I spend money at stores who make me feel welcome, and I recommend that store to others.

A well educated staff is important. If they are on the floor selling, they should study up on brands and technologies to answer just about any question thrown their way. I've been to different LBS where I'll ask the employee about the history of a particular bike brand and they rattled it off like they were saying the ABC's. I've been to other LBS and asked why a particular frame was designed in such a way, and they could not give me an answer.

Selection is always a good thing. If my LBS has a particular Park Tool I need, or good clothing selection, I gladly go there and spend a little more money than ordering it off the internet for cheaper.

In all, I believe excellent customer service, good employees, and good selection are the most important things. If you have these, it justifies having higher prices than what you may find on the internet.