Poor example mate... as most ppl I know in this hobby indulge in none of those past times. Smokes, Dope, Beer and gambling costs about the same OS as they do here shipped to your door.. Potentially more.

The simple fact is, if the local hobby retailers and distributors don't change their business model, they will simply become another victim of the technology revolution just like the humble photolab.

It is difficult for ppl to stay loyal when in some cases there is such a large discrepancy in prices. eg AE B44 Kit can be had fro AUD$350 to the door, where most LHS will hit you AUD$500.
Venom are a good example of a local distributor doing a great job in adapting, with their Team Durango prices very comparable to OS prices.
Having said this, RC Hobbies do have very competitive price on most items.