I think this is the right place to post this. As a customer of Ag Photographic, I got an email shot this morning saying that they have just opened a new processing lab for C41, E6 and black and white. Details at www.ag-photolab.co.uk. This is encouraging news as they are also a supplier of films and darkroom products. I usually use Peak Imaging which are excellent but I have a sharp intake of breath everytime I see the bill for latest batch of 10 rolls of 35mm printed at 5"x7.5". I have a batch of rolls ready to send off and I may give them a go.
You basically have it correct. Matt at Ag has done very well, starting off as he did in the B'ham suburbs over a garage. Shows what can be done with a retail analogue business if you work hard, don't overcharge and have a real connection to the customer.