I'm not knocking you Glenn, you've got some good points to make, especially from a business standpoint. I cannot argue with your logic. However, as a "general" pet shop, you've got more knowledge of marine/reef than many (dare I say MOST?) general pet supply/shop owners.
As a hobbyist (taking off my retailer hat and going back to when I was ONLY a hobbyist), I would NEVER buy fish from a "general" pet store. I wanted a specialty store who knew their stuff, and usually those niche stores were the ones. I was lucky to find a really good one that 90 % of my purchases came from but we did the circuit to all the LFS every now and then. As loyal customers we got perks and deals, because the owners knew we spent most of our dollars there. There was no Internet then but there WAS Big Al's (warehouse store in our town) and we'd spend a dollar or two EXTRA at Mike and Mary's because we wanted to support them. It's not much different then than now, except the medium is different. Even if I wasn't relying on the LFS for guidance (I got lucky and found a GREAT shop: first thing they sold me was a Moe book), I wanted a place that would make it or break it on their specialty, not make up for cyanide fish (back in the day) with kibble sales.
Anyway -- call me a bit of a snob, but I would not then and would not now, buy marine fish/corals/inverts at the same place I bought my kitty litter. YES I'd buy my cat and dog supplies at the same place, but given the cost of the marine hobby, I'm much more discriminating and I don't think I'm alone, or there wouldn't be so many dedicated LFS.
Jenn