I know this is simply anecdotal, but I find it interesting.
The two hobby shops dedicated to trains in my vicinity (50 mile radius) that have closed in the last couple years discounted regularly.
The one shop that is flourishing, has always, even with the competition, gotten list price for everything.
I don't know what it means, just throwing it out there.
Outside of our little enclave of OGR, is price really the overriding factor in where hobbyists do business?
I will give my own answer that doesn't speak for anyone else: The full price shop is always staffed with friendly people who act like they want you there. It's clean, well lit, and inviting.
The two discount shops were always like walking into an tomb. The staff(maybe owner) always seemed distant and less then happy.
Is there a correlation?
Yes, I know there are shops that heavily discount AND treat you like royalty.
I'm simply talking about what was local to me and my observation.
To sum up:
Full price shop still open, loves their customers and show it.
Discount shops closed up, no real customer service in all the years I tried to shop with them.