There seems to be some misunderstanding going around on all sides about the point of my prediction of the internet vs. small business post and the discount cap. But that's neither here nor there.
What I'm seeing all of us agreeing on is:
Regardless of political and economic views, we all agree that the LGS needs to diversify deeper into service and capitalize on convenience.
So if we all agree on that, then there's no point to discussing economics any further. It serves no purpose and has therefore become irrelevant to the thread. The point is had. Let's get back to the topic about how best to make this model work.
In my area, the FLGS (Dragon's Keep) is great. They are very friendly. Whenever I go in with my 5 and 7 year old, they usually give them free stuff. My kids also get an allowance and if the price is close enough, the owner will sometimes discount the stuff enough so that my sons can afford it. It's kept us going there for the last few years.
Do I buy from amazon? Sure do. Do I buy from Dragon's Keep? YES. Several years ago, there used to be a lot of creeps there. Then the store came under new ownership, moved down the street to a place that was cleaner, brighter, and more accessible, they also branched out to board games and other stuff.
There seems to be tournaments and other stuff going on and once in a while they will have some comic book artist come in and work there. It's really neat watching how he draws stuff. They've even had some painting classes to teach you how to paint miniatures and terrain and stuff.
They do have 1 or 2 tables to play at on the first floor and some tables in the basement. After the change in ownership the crowd has changed too, I see more women especially mothers and fathers there buying games or getting comic books for their kids.
You want success, make mom and dad feel comfortable. Don't throw up the fantasy sci-fi porn posters on the wall. A few years ago, I would not bring my kids to the store because of that, now, I have no problems. Offer other things for those playing the games there (candy, snacks, soda, paper, etc.)
Oh, one big turn off from the previous owner, they would shrink wrap everything and then charge 25 cents to open the shrink wrap. That 25 cents was waived if you bought the product. I'm not going to pay any amount of money for the privilage of deciding if I want the product or not. It was at this time that I usually went to B&N, borders, or amazon.
Throw out the people that are afraid of soap. Nothing like walking into a store and being confronted by an invisible wall of stench.
Just my 2 cents.