Most LFS owners put in a tremendous amount of hrs already, the cost of a website isn't the problem. And this issue isn't just about having an online presence, or not. It's far more complex than that. It's easy to sit on the sidelines and say things like "adapt or die" (which this truly is a case of) while every man and his dog has become a wholesaler of dry goods, and an importer of live fish from foreign countries. Many of these vendors are in business for less than a couple of years, just long enough to further erode what little market existed prior to their arrival into the "fish business".
Let me give you an example. In my area there are a couple of guys who import fish from South America several times a year. Large orders, lots of very hard to find species, plecos in the $250-500+ range. Not just neon tetras etc. They sponsor online forums, and they give great deals to hobbyists. They do all of this out of their homes, cash is paid for everything, and not a single penny is claimed as revenue at the end of the year.
How does a LFS compete with that?
There are teenage kids in high school now importing fish, expensive fish, Asian aros, rare stingrays, exotic and uber expensive species of all shapes & sizes. Then they blow out just enough (at low ball prices) to cover their costs on one or two fish, and the shipping, and maybe pocket a few bucks.
And again, how does a LFS compete with those kinds of prices?
When I dealt in dry goods (fish food) there were distributors that were hurting enough that they would sell to anyone who had $$$ in hand, not just legit vendors with legit businesses. Some of these idjits (online vendors) would not only sell at lowball prices, making just enough to pay for a couple of buckets of food for their own tanks - but would do so in the parking lot of the LFS. Their prices to hobbyists, was my wholesale price to a retail store!
How does the LFS compete with that?
These types of vendors come and go on an regular basis, one moron leaves and another fills his shoes. They don't know jack about business, have probably never heard of, let alone written up any kind of long term business plan, because for them this isn't a long term venture. Most of these types also do not pay taxes, so for that reason alone it's always going to be difficult for an honest legit business owner to compete with bottom feeders like that.
I'm all for healthy competition and pricing, and getting good deals on everything that I can, but at some point every business owner has to look at their bottom line & decide whether it's worth the effort and costs, or not. Unfortunately there is a huge black market portion of online sales, where cash is paid & receipts don't exist, and IMO this is what's truly hurting the fish economy, not legit tax paying online vendors who are in this long term, and who also want to see the overall market improve.
It's hard to compete with crooks ......
