My wife and I used to get our stuff off of amazon simply because of price. About a year ago, we started getting our stuff from our flgs instead of amazon because the prices were similair, i didn't have to wait on shipping, and i met a nice large gaming group at the store and thus wanted to make sure my money keeps the environment going.
I've got 4 FLGS within about 30 minutes of me in the orlando area.
I only frequent one of them for DnD needs.
Store 1) Big mega gaming store. Everything you could ever want, all at full retail for most of it. They run a lot of 40k stuff. I go there for metal minis for the wife to paint and some older stuff. They also have anime and networked video games. Staff is mostly there to ring me up. It's the super market of gaming.
Store 2) Mostly a comic store with some nice out of print 3.5 stuff. I scooped up most of thier dungeon tile stock a while back. They run dnd encounters, but are a bit far and are in a part of town you wont catch me in at night.
Store 3) Small place in a shopping center. Looks to be mostly 40k and flames of war. I get my wife vallejo paints and some gale force 9 terrain stuff here. Small amount of DnD selection. Not very much room, staff are friendly enough, but not that engaging in my opinion. They just started dnd encounters.
Store 4) This is the store i go to for most of my rp needs. Nice amount of space (in fact, just moved to a bigger unit with even more space). Very friendly staff that are engaging and join in for rpga and other stuff. Most of the store is play area with some nice product display areas. Don't see something you want, check one of the in store computers and they get it for you from in back. This store looks to be a heavy MtG store, as you can find at least 1 or 2 full tables at any given time. I get my DnD stuff here with only pennies of difference between amazon prices, and i don't have to wait on shipping. I also get my wotc minis for dnd and star wars here, as they are significantly cheaper than anywhere else. They sell snacks and drinks at reasonable prices (and i'm sure there is a decent prfit on snacks and drinks). I both play and dm rpga lfr games there. Sadly, no DnD encounters as it conflicts with a wednesday board game night that is PACKED and wotc does not want to budge on wednesdays. And yes, they have a cute geek game girl as an employee. The groups of ppl i play with there are varied widely in age, from teens to those in their 50/60s. Some ppl have been mentioned trying to setup some pathfinder games, but there just isn't the interest from the players and no one seems to want to DM it. Myself, i'd like to run some Star Wars Saga Edition games.
As for the view that wizards is trying to drum up sales, good for them! Whether 4e is selling good or not (and i hope it is), it only makes sense bring in as many new faces as possible to your product.
I feel DnD Encounters is trying to add more people the community. Especially younger players. With the short attention span rug rats, it's hard to get them to stay focused for 4+ hours. I want to strangle my little brother whenever i DM him and his gf because they wont pay attention. With this being a single enounter, 1-2 hours, you have a better chance of hooking them. Hook them, they buy product, make money, which goes towards making more product, and everyone gains. You also have quick rewards via renown to keep them wanting more.
Additionally, if this program can drive business into a store, store owners have the opportunity to expose that player to other product. "Hi, did you enjoy the encounter? We offer a fine selection of DnD books, dice, game mats, etc if you need anything. You should also come check out our board game nights and CCG nights! I've got some starter sets that can get you right specifc into those CCG games as well! Why don't you bring some friends and try some of the board games we offer free to play? If you like it, why not get a copy for home!"
It's all about the upsell.
I was also hesitant about the direction wotc is taking for the essentials product line. But you know what, they are doing the right thing. The economy is tough, not going to get any easier any time soon, and everyone is tightening thier belts. If you can bundle your game in a cheaper fashion and make boxed sets with everything a small group will need to play cheaply, you are going to bring in new customers who would have walked away from the expensive 3 book core set. At a lower price point, parents are more inclined to give it a chance with their money. More new customers that you hook, your business unit stays alive and you get to make more products for your core audience.
"But they will loose my business bc i don't want n00b products".
Apparently they thought of that and are making sure the essentials have new material in them. Of course some people are just stubborn for stubborn's sake, and well, you can't please everyone(zomg, new edition, i have to buy all new books bc my old ones will cease to exist on launch day! Stupid evil corporation trying to make money while offering a new type of play experience! boooooo!).
What it basically boils down to: for some ppl, it's all about cost, which is perfectly fine when you are hurting for cash. For others, especially as one grows up, you learn that camaraderie, pleasent experiences, and mood are worth a little bit more of your hard earned money. If your store doesn't create such an environment, perhaps it should. A customer that feels welcomed will revisit. You don't need to be an expert on any given product, but you do need to help find what the customer is looking for or answer their questions.
-J