WOW! What a great letter! That would put a smile on anyone's face.

Hey... I'm wondering... have you priced your competition?

I have taken my bike to over 15 shops in the valley and your tune-up cost was the least expensive and most inclusive.
While kudos are great, they don't always pay the bills (but referral business does!). It sounds like you need to find a way to give outstanding service while not going into a complete black hole of debt.

Also, how are you marketing what you provide.. in a tune-up, etc.? If you are giving WAY MORE for the money... why not point that out in the shop? You don't need to put down the competition, but clearly state somewhere what they are paying for. Someone who is a serious cyclist will know how it compares to other shops.

It sounds like you two have the human/customer service aspect of this business down pact... now how to make that translate to lots of customers and money... that is the question!

How is your marketing around town? Your website? etc?