Ideas	Voting results and bounty paid	Comments

A specific example is the place I get my oil changed - they give you a coupon for a discounted car wash at a local place. This accomplishes two things - it makes me go to them for my oil change, and convinces me to shell out a few bucks for a car wash (which is something I'd normally do for myself at home).
Suggested by Michael

It's accepted by a lot of small businesses, and 10% is the default offering, but every business does something different. You should talk to those businesses and see how it is working for them!
Suggested by Riton

Honestly, 10% is not much of an incentive considering the big stores will likely be beating you on price above that. It is all about the experience. People generally enjoy supporting something where they feel there is a real impact by their patronage. Create a community feel by sponsoring local events or combining with other local independent stores to create 'buyer clubs'. If you are insistent on discounts, then have some sort of punch card (similar to a coffee card) where patrons can work towards a reward. This instills loyalty and might cut down on the 'well, 10% isn't enough to outweigh convenience' mentality.
Suggested by David

Cooking Demo, Cake Decorating, Fancy Garnishes, Making Sushi, Making Candy, Plant Grafting, Bonsai, Mixing Fragrances, Making Candied Fruit, Flower Arranging, Using Power Tools, Using Digital Camera Features are just a few examples. Have criteria to be eligible or charge a small fee.
Suggested by Nancy

You cant beat walmart on price, offer better products. Its up to you to educate customers why your products are better. For instance, I used to put citrus honey in my tea, but after I tried chilean tiaca raw honey I am happy to pay $9 for 4oz of the stuff its so good. Big box stores do not offer high quality items and that is where you should fight them.
Suggested by Josh

Appeal to the social nature of people.
Suggested by Frank

I enjoy the social aspect of shopping. Make it fun! I feel welcome!

I always love to try new things but hate to have to return. Free anything makes coming back like a little party!
Suggested by minette

I tend to buy more when there are freebies and I stock on certain items
Suggested by minette

get the community to rally behind/for a charity or cause.
Suggested by Troy

for example, buy 10 get 2 free. could be a tiered scale.
Suggested by Troy

for example, spend $100 and get 10% off ($10). could be a tiered scale.
Suggested by Troy