I think this argument is laughable. I was just recently going through this "online" vs. "lds" question in my own mind as I began buying gear for my whole family. When I was last active recreationally, this wasn't a choice.
My wife and son went in and signed up for OW class - the shop gave us a $100 discount on the class for buying their personal gear at the shop. So we did. We ended up with some gear that they NEVER used (weight belts), and paid about $150 more each to buy the gear. IOW, we went negative $50/ea on that transaction alone.
I like the instructor at the shop, so I attempted to shop for the rest of the gear with them. They wouldn't even discuss being competitive on their pricing. I asked them to just get close; I was trying to be flexible. (I don't know why I felt I should be flexible when they weren't). I bought my stuff from LP. I had no trouble with the transaction, shipping or merchandise in any way. I have since bought several more items from them, all the same result.
I have also bought a lot of incidental items from my LDS; including classes and misc. rental items as well as overpriced snorkel gear - I've spent about $2,000 in the LDS too. I've also referred some people to the shop for some classes. Upon further review I probably shouldn't have because those people have tried to shop there and they have a take it or leave it gear pricing policy - and that is the way they present it.
The thing that really ticks me off is the store manager (not the instructor that I like) will start giving customers that song and dance about "where are you going to get fills?" and "where will you get training if we close because you buy your gear from LP?" He also claimed that he had a bunch of customers that have come in to the store with online merchandise asking to have it fixed. This is just a story he heard from someone and is repeating, this never actually happened to him and he has no personal knowledge or experience with this type of situation.After about the third time I heard this from him, I pressed him for details until he admitted he was just repeating something the owner told him. I believe these battle crys have been repeated among weak local LDS' in an effort to discredit the competition that is kicking their butt. they also use it to try to intimidate customers so they will be scared to order online. Just like the story about how LP gets their parts from dumpsters........And this shop does try to charge $15 for an air fill.
Also, I've gotten more incorrect information from my LDS in the last month than I would have ever imagined. Like the shop manager looked me straight in the eye and said "if you breath pure O2 at anything deeper than 19' you'll die". He actually believed that BS. Just scary.
So while I had a predispostion to do business locally, and I gave them some business and opportunities for more - they really have dropped the ball and are not competitive. They are not as cheap, don't have as good of selection, don't have as much expertise, act like they don't care, try to blame it on the customers, lie when they don't know the correct answer and in the end they have much less credibility than most online retailers that I have done business with. This LDS claims to be the biggest in my area. Unbelievable. Their business model is based on getting unknowing newbies in for class, selling them a bunch of over priced gear one time, and never seeing them again.
So in Catherine's words, they don't bring anything to the table. That is a value statement. Someone earlier said that price is the only thing that is important and value doesn't matter. What you bring to the table for the price I pay is the value. A transaction will only occur when the perception is that price and value intersect.
To the OP - sorry your thread turned in to this debate; my experience with LP has been exceptional, I'm sure they will fix your problems given the chance.