From an LBS point of view.
Over the last couple of years I have seen my trade bias shift far more towards servicing than sales.
There is little point in me stocking anything much high end as if I did I’d still have most of it a year later and only be able to sell it for less than I’d have bought it for. I regularly have to apologise to customers for only being able to show them catalogue pictures of the products that would fit their requirements. I’d love to have a shop full of all the best stuff but if I did I’d eventually have a museum rather than a shop.
The big online retailers are always going to be able to offer the cheapest prices because they have the buying power to get their stock cheaply — just like Tesco. Also, how much do they have to pay the staff who put your shiny new parts in cardboard boxes and tape them up?
The majority of my customers think £500 is a lot to spend on a bike and as long as the supermarkets etc continue to to sell cheap bikes I’ll continue to make a living patching them up. It’s always refreshing to have more enthusiastic and discerning customers in the shop but round here they are too few to be a significant part of my business model.