Don't get me wrong, I am not down on the LHS in any way, if I left that impression it was not intentional. I regularly buy from the LHS.
I usually know what most things cost to mail order and I expect the local shops to be pretty close to those prices, if they are not then I don't normally use any of the LHS "services" in regards to that item. The shops in the Dallas metroplex price ARFs at the mail order price regardless of brand, other items are priced higher or lower than mail order prices.
Normally I do not need to handle an engine, an ARF, or a kit to know if I want to buy it so there is really not a service aspect the hobby shop can provide other than to offer that item at a competitive price. There are some items though that I do like to handle before purchase and this is where the LHS service comes into play, if I go and "try out" something to see how it feels in my hands, or turn it on and look at the menus, or if I simply ask to compare couple of competing brands to see which one I like the looks of best, then it is only fair to purchase that item from the hobby shop. In that instance if the price is $239 vs. $209 then I will pay the extra money because a service was provided that helped make or influence a purchase decision. If I know I want a particular ARF or kit and mail order is $209 I would not pay $239 to the LHS for that item.