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But his question was about how others deal with small firms, not about WHY he's dealing with them. Why not answer HIS question and offer him the benefit of your experience in dealing with Mom and Pop operations?
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Interesting viewpoint. Limited...but interesting nonetheless. IAC, let me take a stab at outlining exactly why you are 100% incorrect in your analysis.

First off, the question of how you deal with Mom and Pop shops is secondary to whether you should deal with mom and pop shops. Based on Mr. Buch's post, his company formerly had not dealt with mom and pop shops. Now, it appears to be more the rule than the exception. Based on the limited set of facts we have, there is some sort of mismatch - either with the product or the company dynamic.

IMO, understanding how they have come to deal exclusively with mom and pop shops is the more relevant inquiry. Ultimately, if you don't have compatible philosophies with your clients - it is time to find new clients.