The industry is a mess and the traditional LBS is getting a poor deal.
They dont have the cash flow or buying power to get bulk deals, they have to go through UK distributors for key stock. (warranty backup being one reason)
I see the rise of big companies like CRC, wiggle etc dominating the high end market and the LBS being lost apart from the shops where selling bikes isnt the main business model, or selling cheap family bikes is profitable.
Im re-evaluating our approach to our shops and looking into possibilities of dealing direct with manufacturers in the far east, and selling our onw branded kit, amongst other things.
One thing is for sure, that a lot of people are merely driven by price and the LBS will do ok if it can compete on key items.
Also CRC often only discount 8-10% and matching this is ok.
And this is often from their wildly over inflated RRPs anyway.
(Yeti ASX RRP £1899, it never cost more than a grand.)
Its a realy tough business to be in.
But Im lucky, the guys in our shops have politeness and customer service by the bucketful.