...And there is not that much of a Margin on the bikes! Factor in costs; most bike sales a shop makes , they may break even! Support your LBS and make sure you get a good service department, there is more value in that than a bike alone.
This is total, total bullshit. The margin on bikes is at least as much, if not MORE, than most retail. 30-40%. Prices have been falling the past few years, too (even for identical models from year to year), as numerous companies have moved into the online selling market. Bike shops aren't just competing with BikesDirect anymore--they're competing with numerous online outfits selling bicycles online with all sorts of brand names on them.
I'm happy to pay good money for services, including a fitting. I'll even pay MSRP for a bike that is in-stock. But don't let anyone convince you there's not room for a discount if you're willing to buy a bike in the middle of winter--that is nonsense!!!
Service is also not just the province of bike shops. There are MANY people out there even offering mobile maintenance services.
I hope there's room for LBSs to survive, but if they're just hoping we'll all walk into their shops and pay too much for them to order us stuff that we can get on Amazon or elsewhere, they will either compete or die.