WE DO SPECIAL ORDERS! This is great, a LHS which will order the items you want but don't normally stock. However there is a catch for the LHS owner...though they want to service their customers there is a cost associated with this. Many of the vendors they order from have minimums. As a former LHS manager, I am very familiar with this. A customer walks in and wants to "special order" a couple of items...no problem. The customer wants say $30.00 worth of stuff, yet the minimum order is $50.00 or even higher in many cases. If the LHS doesn't reach the minimum there are penalties...such as having to pay shipping or even a lower discount allowance.
Now the LHS has to make a decision...pass along the cost to the customer or order more stuff that really isn't practical to stock. In the past this was an acceptable practice, you could always pad your order with a few items that would sell. Today, it is a very poor business practice.
The customer will probably gripe if suddenly he's paying more for the items from his LHS than if he himself ordered direct...yeah this is a reality...there are those distributors who offer lower minimum order levels than they offer their LHS customers. Hence one of the reasons many LHS started to trim their selections and inventory levels.
A LHS that tries to be all things to all customers isn't clearly thinking...why offer plastics if you don't have a market for them. Why offer aftermarket accessories if your clientel doesn't purchase them...looks good in the display cases but does do any good for the bottom line.
Also, many LHS limit their resources for product...one or two distributors. This keeps the bookkeeping easier and less salesmen calling asking you to order. As the distributors trim their offerings, so does the LHS because it is "no longer available" from that distributor and they aren't necessarily keen on finding a new source...more paperwork, more time for little incentive ($).
The sad fact is many retailers do just this...I worked for a hardware store...we were the exception because we ordered more direct from various sources than within our "own" distribution channels. Many industries promote "steamlining" or product sourcing...one stop shop. Problem with this is the retailer is limited to the items (SKUs) that the supplier stocks. Thus it eventually limits your customer base as well. If you don't have it they'll shop elsewhere to get it. Just another example of a business decision the retailer has to make.
I'm off now to the local Technical College where I am a guest speaker. Today I'll be giving a presentation about starting and operating a "small business" to the students in the Business program.