RE: Are things beginning to loosen up?
And who said he had to forego one to sell to another? He sells to both, and provides both the same level of service so BOTH are happy and come back again. That's good business. Refusing to sell an item you have in stock to a new customer just because a regular MIGHT want to buy it sometime in the future is stupid. Gouging the new customer so that he either won't buy it, or will leave with a negative opinion when he realizes that he's been screwed is worse yet. I think it's nothing short of a miracle he's lasted as long as he has if he's really as bad as you say he is (which I actually doubt).
If I ever went into business, I'd consider a guy like this as a competitor a blessing from God, because I guarantee that I'd take all the customers he turned away, and maybe a few of his regulars, too. And I'd be very happy when me and Walmart put him out of business.
Mike