Large discount chains can make a profit even while offering low prices, because they buy goods in large quantities at favorable cost. This creates a problem for small retailers. If they try to retain their customers by lowering prices to match those of large discount chains, the result is a lower profit margin. But small retailers can retain their customer base without lowering prices if they offer exceptional service. Hence, small retailers that are forced to compete with large discount chains must offer exceptional service in order to retain their level of profitability. The reasoning is flawed because it fails to take into account the possibility that ['not all small retailers are forced to compete with large discount chains', 'exceptional service is not the only reason customers prefer small retail stores', 'not all large discount chains do in fact make a profit', 'small retailers are often motivated by things other than the desire for profit']