The plain truth is, that the person likely to be most interested in a store's success is that store's owner, and one of the best ways to ensure success is by providing top-notch service. Chain-store managers often work for an impersonal owner hundreds or thousands of miles away, frequently are underpaid, and rarely have their compensation tied directly to their stores' profitability performance. Public relations value. The pace of their expansion is often dictated by the number of trustworthy relatives they have available to manage new units. Their success rests more on the level of service they provide than on the price or selection they offer.
Many customers are willing to pay a little more for a better level of service.
The reputation of the local merchant often has deep roots. Large chains, on the other hand, have to finance expensive advertising campaigns to cultivate the desired image to a new market. Local retailers are sometimes willing and able to pay higher rents than chain stores. Part of the reason may be that their sales per square foot are better because of the higher prices their service levels allow them to charge. Perhaps because they are so attuned to the market, they are able to project sales volume more accurately than chain real estate directors and thus can see the inherent value in a particular location that a chain might miss.