I don't know how they do it, but my LHS beats Tower's and Horizon's prices on almost everything, given they cannot beat it if you add on the online coupons. For example, a Mach 427 engine is $150 on Horizon, but $135 at the shop. ARFs are also competitively priced, and 10% Omega fuel is $10 a gallon, and they have at least two dozen different fuels to choose from, including heli, airplane, car, and boat fuel. They also are the only hobby shop within 40 miles, and serve the entire north county, which is full of hundreds of RC pilots and drivers. They also give hundreds of dollars of raffle prizes to our flying club for the huge RC and full scale airshow we put on every year, and are one of our main sponsors. Guess everyone here in the north county lucked out.
The next hobby shop 40 miles away is full of people that want your money, and nothing else. Their stuff is way overpriced, and the staff is anything but knowledgeable. I remember one time this guy was buying a T-Maxx, and the guy at the counter said, "Okay, after you break in the engine, then you can bring it back as soon as you finish and buy a new one. These engines suck anyway. The OS .18TM is a good buy (it is $270 there), but you will need CVDs, better diffs, and a lot more to get your truck to withstand the engine." The next customer that walked in looking for a RC truck I helped before the sharks could bite at him, and he told me what he wanted, and I showed him to a Savage 25 Limited Ed. and he said it was exactly what he was looking for. Then I showed him all the stuff that he would need to run the truck, and he was about to buy everything when the shark found out that I was going to sell him a half decent truck, and he kicked me out and showed the guy to the T-Maxxes. The guy left, and outside I gave him directions to the hobby shop in the north county and he bought the exact same setup I showed him, at almost $150 less expensive. By the way, the first hobby shop in the north county has at least 5 customers in there at any one time, but me, the two other guys (that came at separate times) and the sharks were the only ones in the shop in the south county.
Sorry for the car story, but I don't have any airplane stories that can relate to the topic.