If it's a Mom and Pop LBS, he probably can't discount as much as Performance/Nashbar/Supergo. From what little I understand about running a bike store, it's not a huge moneymaker. It's a tough business; competing with the internet and chain stores has got to be difficult. If he is giving you good service, and advice, I'd stick with him. That doesn't mean you have to buy everything from him, but it's always good to have an LBS you can trust.