Just out of curiosity (and because you are the only bike store owner participating in this thread)… how are your prices compared to same/similar products listed online? Do you do some research before coming up with markups? What I mean is, will a random (not-loyal yet) customer walk in, buy a bunch of stuff only to feel completely ripped off when he/she goes to online retailers?
We have a set pricing program that has different markups based on a certain price range. We don't research online pricing for the most part because the number of people who buy online don't affect our overall sales to a significant degree. We also recognize that if people want to take the effort to research product online, and deal with shipping and possible duties, then they've earned that deal online, but online only. Good for them and I have no qualms with that practice. Business is business.
I can honestly say that something we pay $5 cost for would be keystoned at $10. As a rule though, we never go over keystone for anything except for tubes. And when we get good pricing on something like bikes on blowout from the manufacturer, we pass those deals onto the customer right away. For example, we currently have some Rocky Mountain Souls on sale at $599 from $899, only because Rocky had too much stock and offered them at a lower price (get it? we didn't chisel them). We are now passing that discount onwards.
We also provide the service of seeing something in person, touching it, and getting an honest opinion out of the shop employee who has used the product. The customer needs to realize that this service has a value and comes at the cost of paying regular retail.