Here is a post where the LBS actually outclasses the online merchants.

Being a recucmbent rider with 650c wheels, it is difficult for me to find kevlar belted tires locally, well today at the lbs near my work (Landis Cyclery in Chandler, Az) I found they had these rather hard to find tires that weren't even stocked by Supergo/Performance. Anyway, chalk one up for the LBS. Gonna get my tires there from now on (650c Gatorskins by the way). Oh, and I should mention the price was actually cheaper too.

I ALWAYS check out the LBS first.

I have a good relationship with my LBS owner. I regularly --as in weekly-- buy components from spokes to headsets to tires. He's Shimano-based, so I hesitated to ask him to price a Campy BB last week. I need not have worried, as he got one for me for about the same price I'd have paid online with shipping considered.

The Campy BB's, I must add, are incredible. There is so little friction that the crank is able to rock back and forth like a pendulum for a good 10 seconds after a little push.

I always check on line for anything I want to buy. Sort the product and find the price. Then go to my LBS and they "Pricematch" whenever they can. When you take postage into account they can normally come somewhere near, and if they can't I normally still get a sensible deal.
Just to give an example- I wanted a set of wheels for the Tandem. From online at a wheel builder they were £280. Got one pair from them and they were great. Next year went to my LBS and the best price they quoted were £320. This was with a later, stronger rim though so not exactly the same. Went to check online price and for the same spec wheel it was £320. Bought from the LBS and the new wheels are better. The LBS used a better spoke and first service on them was free. (Just retrue and check). That was 4 years ago and my LBS will always give me a good deal- but then I probably spend about £1500 with them each year.

Other thing is that my LBS want me to come back. They tell me if I am about to buy rubbish and suggest something more suitable, or if a cheaper item is just as good. Then there is warranty- No problems whatsoever. Then there is the Experience thay have, and the knowledge, and the Skills and.... The list will will go on. On top of that- How many times have you had to ask a technical question of an online dealer and had to wait for the "Owner " to come back to get an answer- or been told a load of rubbish by a Lad just out of nappies. Example- Wanted a set of bearings for my Mavic hubs. Can't get them as they are Factory fitted. My LBS wanted to know the serial no of the wheels and they had them in stock. Took the wheels in to check they were the right ones and 5 minutes later they had replaced them --Oh and bring the back wheel in next week and we'll have the new spokes in to replace the damaged ones that I had not spotted.

On line merchants are not dummies. They know the price point for every item at which too many people would turn to a local bike shop. They are OK for people out in the middle of nowhere like Artic Circle, Alaska or Darwin, California. Or for people who can not stand someone in the LBS. Some things can't be obtained mail-order unless you have a resale permit or a contract with the maker. That is where you need your LBS. My favorite shop has enough staff that Roadie mechanics deal with roadies and geezer mechanics or young women on their racing team deal with the likes of me.

My LBS prices are always cheaper than on-line.
The shop doesn't even have a Web Page.
Minimal profit + huge turnover = success.

Steve.

If you have an odd item that you use more than one a year of, like small tires, ask you shop to stock it. We have a guy that is a chair racer and he uses a particular brand of 24x1 tire, so we keep three in stock for him.

As much as the LBS takes on this forum its the stories like these that are good to hear as I think they are more the Norm, and when service is bad we tend to speak out loader.