Bingo! If a LBS wants to be competitive --at least with the mid to high end market -- they need to focus on service and attention to detail. They certainly can't compete on price...
In the classic sales book, "How to Master the Art of Selling," Tom Hopkins goes into great detail about what he calls the 'itch cycle.' As the name implies, the itch cycle is the average time a customer waits before purchasing something new. In the book, he outlines how this would work with boat sales, but the exact same mechanism works in bike sales.
Send personalized notes...even make phone calls to established customers to let them know when new models arrive so they can swing by and take a test ride. Let's face it, high end bike purchasers love new equipment, so why not take a minute and invite Joe Client down to take a look at the new Di2, for example.
Trust me....no one else is. And you think he's going to buy it online after you have reached out to him like this? Not likely.
Another interesting book that uses an auto dealership as a model is Customers For Life by Carl Sewall.
I know creating a data base and reaching out to clients may seem like a pain -- and most won't do it -- but people really respond to this level of treatment when it comes to their passions.
Itch cycle blog post
Short itch cycle video