if you are selling online, it is all about the price. the people who care about value and good service, will buy at a local store.
"Unless your name is Walmart, dont bother competing on price, you will get slaughtered."
Only way you can succeed, is if the online store is an extension of your local brick and mortar store, and for online sales, you tack on alot of high margin items, extras (such as warranties, batteries, cleaning kits, etc.)
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