I'd like to give the local dealers the benefit of the doubt, but it's gotten so much harder the last 5-10 years. Yes, times are tough for everyone. Yes, there needs to be a healthy mark-up on stuff they sell, as the have costs of doing business.
Today's dealers are a different breed IMO. A person who truly loves music and wants to get his/her customers the best gear to hear their music, regardless of budget has become the exception rather than the norm in my neck of the woods. If you're not spending several thousand dollars, they treat you like you're a waste of their time. Now I'm not a business owner/manager, but when I see a store empty and the people there complaining about how hard it is, I don't think anyone buying anything is a waste of time. Maybe I'm an idiot?
I live in Connecticut, about a 30 minute train ride to Manhattan, and a 10 minute drive to Westchester County, NY. There's no real shortage of shops or gear to hear. There's a huge shortage of rational dealers who know the value of a customer who's not made of money, but will buy modestly priced stuff on a regular basis. There's 2 shops left that I'll do business with. One is a Bryston dealer in Greenwich, CT - Audiocom, and the other is a Naim/Linn/Rega dealer in Mount Kisko, NY - Accent on Music. Both understand the value of a guy like me. I haven't bought the most expensive stuff (not even close), but I have bought stuff on a regular basis. If they don't have what I'm looking for, then it pretty much doesn't exist to me.
I've been in a very popular shop in Manhattan at least a half dozen times. No one there has litterally ever said a word to me. Another popular one told me what to buy and wouldn't let me hear what I came in and asked to hear - twice. The speakers were hooked up and in my price range, which was about $1500, so it's not as if I was dressed like a bum and asking to hear $100k gear that everyone knew I couldn't afford. I ended up buying the speakers I asked to hear both times from Audiogon from a dealer who used them as a demo pair.
There's something seriously wrong with the dealers today. They have the mentality that the average person is a waste of their time. Yet they complain everyone buys on Audiogon and the like. I'd call the owner of the shop that wouldn't let me hear what I asked for on two occasions and explain why I bought them on Audiogon, but what do you say when it's the owner who did it?
The dealer's and most other audiophiles complain that no one new is getting into the hobby and it's dying. I think my reasons above are a very big reason why.
Maybe if they treated regular people like customers who are the ones who'll really end up keeping the doors open, and actually advertise once in a while, things may pick up a little bit. Who are they saving the entry level stuff like NAD and Cambridge for anyway?