PhilEllis:
ANYONE that thinks prices doesn't matter is making a serious mistake.
To be clear, I'm not saying price doesn't matter. What I'm saying is that any retailer has to decide to what degree they are going to let price be their differentiator.
Now Phil, you say that you would happily sell at a higher price if you could. But the truth of the matter is, you can't. At least not and still complete in the webspace. Not a knock on you, it's a business decision you've made, and by all accounts for you a good one.
But let's not be naive! If you charged more, approaching LDS pricing, you would have no differentiator to the web customer. Largely the only reason someone buys something from you over the web/phone from 1,000 miles away is that your price is cheaper. If it were not, there'd be no reason to buy from you vs an LDS all other things equal. (Again, not a knock, just an observation from a marketing professional.)
Your value proposition to the customer is low pricing. My LDS's value proposition is service, relationships, trust, etc. For some things that value is worth 10% off MSRP to me. To other people it may not.
Sure there's Walmart and Costco's, but there's also Nordtsrom's and Neiman Marcus. There are different markets and different price points for different customers.