Just look at the best LHSs out there and what do they have in common? A knowledgeable staff, decent inventory, ability to order an item they don't have, repairs or replacements, test run an item before you leave the store with it, web presence(I don't count FB as a web presence but a full blown website with up to date inventory is), competitive pricing and a policy of making it right for the customer if there's a problem. If you don't have these than your best way to get me in your store is a free locomotive of my choice every third Thursday of the month.
A lot make a big deal out of not having to ship their trains back to the manufacturer themselves, I found this prewar box on another discussion...
Meet the new boss same as the old boss!
Jerry