I'll be candid right off, I have not had a good experiance at my LDS where I recieved my training, and its the usual laundery list of complaints, having ill fitting pooh foisted on my as a beginner package, at what turned out to be an inflated price ect. PLUS, as a glutton for punishment, my regulator failed twice the first dive after having my yearly maint. done on it (I kept going back for my "free + cost of parts maint cause well, im stupid.) Plus, looking back on it as an experianced diver my training was not enough to prepare me to be an OWD, but I digress.
MSRP is often a huge markup, usually 50%, or double, what wholesale cost is, known as a 'keystone" markup. There is usually another manufacturer set price known as "MAP" or minimum advertised price, which is, depending on the company, between a 35% to 50% markup over its maximum volume discount. This is how larger, higher volume shops can offer better prices, and why when you look at higher volume internet sales sites, they often quote the same price. In many industries, to counter online sales, local shops, even not the high volume ones, have also gone to MAP pricing to retain customers, and then sought alternate revenue streams to regain margins, such as training, trips, ect. It seems like the smaller, more insular shops are, in general, the slowest to adapt to changing market conditions, and unfortunatly some simply stick there head in the coral, maintain keystone, and complain that people are buying online and have no loyalty. These shops will probably go out of business eventually, as they don't change their business model.
LDS no longer have a monopoly on equipment information, forums such as this one have seen to that. Consumers are no longer beholden to sales reps who push certain gear because of margins, or sales programs offered by manufactueres or regional sales reps.
This is a good thing.
The best LDS will servive because we do need them, and they wont rip us off, they recognize consumers have a choice. It is possible to provide service and value.