Sud, you are going to have one awesome store if you implement these great thoughts! I hear everyone saying competitive prices, that's subjective. On line isn't always cheaper with shipping, and if you really want to support the local guy, 20-25% is reasonable.
What I like from my LHBS- Hops by the pound (most varieties within 10% to on line), good stock, generally fresh yeast (please don't tell me yeast is fine even at 6 mos, please!), recipe grains they sell by any increment, grain sacks, homebrew club (even if I don't belong / attend I think of going and likely will some day), hop rhizomes, friendly staff, brew kits they've put together for new brewers- extract with steeping grains- good instructions. What I don't like- their homebrew (how is it possible its not good?), not imaginative, such as customer loyalty programs, some employees condescending comments (train them well!).
What I'd like to see- customer loyalty programs, diy corner, used equipment sales program (buyback other's equipment and re-sell), I received a SS conical for a present, but if I were buying one myself I might consider a refurbished one that I could see in your store- why let ebay have all this business? Call this corner of your store an Eco friendly zone. Help keep items in use and out of the landfill! (I have no idea if this will catch on, just a crazy thought!). I'd also like the store to participate in group buys, but haven't considered the economic impacts, so this is just due to the impressive savings ~$16 per sack cheaper than LHBS. I am torn on this, the store I will pick up from (1st time) is a bit away, so will spend pickup day in Philly to not waste the trip. I feel like I'm cheating on my LHBS.
You are in an increasingly tough environment with the internet and the published price lists, I wish you the best of luck and wish others realize its important to support local stores. I don't buy much on line, like to support the local guy, and not just homebrew stores!