any LBS trying to “price match” on-line retailers is slowly bleeding to death, even if they don’t realise it…yet 🙁
workshop jobs should never be done “for free” especially when customers have asked you to “price match” and then cheekily asked “oh, can you fit it for me for free?”
no one works for free, I am 100% sure the customer asking for price matching and free labour does not work in their job for “free”, bike shops are no different, just like any business with operating costs including payroll
I’ve worked for LBS, distributors, chain stores and even owned a bike brand and dealt directly with Taiwan and Japan
one LBS I used to work for, was ahead of the game, and sources lots of OE kit directly from its import brands (why not “sell” 1000 frames a year instead of the 800 you actually sell) and this allowed us to undercut other retailers buying through official distribution whilst maintaining our margins 😉
there is definitely a place for the LBS, its selling box brands from the big players (Specialized, Trek, Giant, etc.) that support their dealer network and don’t want their bikes sold on-line
and also offering expert advice to new cyclists, and specialist workshop services to both new cyclist and even expert cyclists (who may not have the technical skills, time or tools to perform this work)
at my current employer, 50% of last season’s profitability came from bicycle workshop servicing
“Service Centres” are on the increase, for very good reasons 🙂