I agree that all LHSs have to make a profit to stay in business but the question is how to make that profit?
Lets compare the 2 LHS I have recently bought fuel from.
LHS with $23 fuel= I was going to buy 2 gallons but once I saw the price I only bought one. The shop was more conveniently located. I was the only customer in the store. I bought the gallon of fuel and nothing else.
LHS with $15 fuel= I bought a gallon of fuel and spent $120 on other stuff (most of his stuff is competatively priced. The shop is a bit out of the way but is packed with people every time I go there.
LHS no.1 trys to profit well on most items but sells few items.
LHS no.2 makes smaller profits per item but sells alot of items.
I don't know which shop makes better profit but the lower priced shop is also the shop that donates items to area clubs for their Fun Flys.