I think it's pretty common for new divers to be faced with this choice.
Not knowing about all of the different options for buying dive gear, any Google search will soon reveal the internet options out there.
It doesn't take long to figure out the price gap between internet shop and their LDS's full retail pricing.
Do you pay full retail for other products that aren't dive related? I usually don't.
My opinion is this:
If my LDS can give me a fair price, I'll buy from them. I don't expect them to match Leisure Pro, but I'm not going to pay full retail either.
I'm not a sucker, I won't pay full retail, and be treated like one either.
Not every LDS operates this way. I've been to some that adhere to the full retail pricing model.....they don't get my business.
There are other LDS's that are more realistically priced, will have package deals, or have frequent sales. They are trying to earn your business, give it to them.
If my only choice locally was a dive shop that were rigidly priced at full retail, then I'd buy from Scuba toys, and have them service my regs.
If I had a dive shop that had a fair approach to pricing, then I'd give them my business.
LDS vs.online is not an easily resolved decision. No one else can really tell you what to do.
It depends on how the dive shops in your area are, really.
There are good and bad LDS's out there. Find a good one.....the bad ones lose my business, and I go to Scubatoys.
Luckily, I have a great LDS where I currently live. It's Micronesian Divers Association (MDA) located on Guam. Two tank boat dives for $38, $2.50 air fills, great prices on gear, frequent promotions such as a 5-star club ($75 per year) which includes 3 two tank boat dives, discounts year round, and member only sales. I love my LDS.
-Mitch