Service and knowledge are good, but we tried that and Wal-Mart killed us. I've told most of the stories, so I won't bore you. But yes, mostly, gun shops are owned by old salts who hate that newfangled internet and that damned Shotgun News dealie.
There are two local shops that are decent. One is also a range and has very good deals on ammo (odd, I know) and the other is high on ammo but often has good deals on used guns. Between the two of them they stock everything I need, and they both beat gun shows.
However, one is run by a crusty old guy who brooks no dissent. I was in there one day (actually right before the EOSM) and picked up a holster. I asked him what his cheapest .45 was, since I needed about 300 rounds. Keep in mind I was just out of college and still working at Hardee's until school started. He hauled out a box and said "That there's good ammo. $12.95."
Now, the other place sells their reloads for $10/box and the same brand for $11.50, so I politely said "OK, thanks. I'll just take the holster."
He wanted to know why. So I told him. I was very polite about it; I simply said "That's just a little higher than I wanted to pay."
You'd have thought I ate his dog for breakfast. "I'VE GOTTA MAKE A LIVING!" and other assorted fun statements. I didn't bother asking how the other guy makes a living.
The same owner told me another time that transfers were $50. He knew me a little better by now, so I asked him "Why so much?"
He told me straight out that he just wasn't really interested in doing transfers; too much trouble for not much return. He figured he didn't want to refuse to do transfers, but a high price would lead people to bother someone else with it. And if someone were willing to pay $50 for some reason, why, then it would be worth his while, right?
Dad had his shop before the internet, but he treated all ordered guns more like transfers. He referred to his markup more like a fee for a transfer and still does. "So, I ordered him an 870 for $40 or something like that, and . . . ."