Houston, I believe we have found the problem. (or I should say a main one of many)
Unfortunately we had to end the meeting then because he had a client show up so I couldn't dig any deeper but obviously I will be following up with him. Its amazing how fast time goes by in these meetings.
Bottom line: The more I talk with business owners the more I'm realizing that figuring out their problems is usually very simple if you are willing to ask, listen and think. As some others have pointed out, the opportunity is in the fact that business owners can't or won't implement the solutions.
Learning that has helped me to formulate my new strategy which is using the free consultation to develop a "prioritized profit improvement plan" to get a long term consulting contract to oversee the implementation of the plan which will open up opportunities for back-end sales of other marketing services.
I believe this really gives me a huge advantage over the typical "consultant" selling seo, websites, etc. because most of them never help the business owner understand where their biggest opportunities for improvement are. They're typically just trying to sell seo or whatever.