Sure, the profit margin on each individual piece will go down, but ultimately you should see more sales and won't be sitting on stock.
For X-Wing at least, that's the biggest problem. Most stores aren't sitting on stock, they can't get enough in to have any sitting around.
My LGS owner has complained more than once about how hard it is to keep anything from FFG in stock. Makes it hard to do much to attract new players when you can't even offer them a core set.
But in general I think most LGS don't have a high enough volume of business to lower their prices by much, at least not for miniature games.
