and I repeat. You clearly know nothing about economies of scale.
You really think the warehouse people pay the same per-unit price for the thousands of bikes they buy as the LBS guy that buys a couple of dozen? You don't think the manufacturers give the big suppliers sale or return deals or incentive packages?
Warehouse staff cost? They're low-skilled, out-of-town labour, i.e. cheap. Website - yes, they cost but the support cost per sale will be very small.
Try working out the operating cost per unit sold and compare an LBS and a warehouse outfit. Do you really think an LBS charges more because he can 'get away with it' and likes to mug customers?
Who needs repeat custom more? Internet-based or LBS?
You seem to think that crummy little shops really shouldn't exist and that all our shopping should either be done on the internet or at large superstores. You really don't see any benefit of local suppliers do you? Ever bought something from an LBS? I bet you have because you needed it quick or didn't want to pay 100% P&P for an inner tube or puncture repair kit.
For some research. Take a look at
Condor Cycles. An LBS that's been on the go for 60 years and still competes with your lovely internet shops. They have a (recently expanded) shop on Grays Inn Road, London (and a workshop/store near-by) - very expensive real-estate. They have a very loyal customer base and why? Because they provide a valuable service - physical objects you can touch and try; people you know what they're talking about and can offer advice, not pimply Saturday job types.