Why local businesses prefer local directories over google?

Hi,

Greetings from an online entrepreneur from Kolkata, India. Recently, I have
been doing my rounds at the local businesses, talking to them about the
advantages of a first page ranking on Google and all the benefits of it.

Now it so happens that here in India we have a country wide local directory
service which has gained popularity because of their low cost and high
returns. Small local businesses put up their listing on this local directory
with contact details and get customers from their locality.

While I was talking to some of the small businesses in my city,they asked me "
Why should I spend money for Google ranking or seo when i need local
customers and not country wide or international? Moreover I am getting my
money's worth as I am getting customers regularly from the local directory
listing." I was left with no answer. I realized that if I go to a dentist and
pitch him on my services to make him visible on Google for a search term like
" dentists in kolkata" and also a google map listing, how could I actually
deliver him with more clients and make him realize that my services are useful
to enhance his business.

I have gone through a lot of webinars and courses highlighting all the money
that lies with the local businesses yet I wonder if this is actually achievable
in India.

Why would a local business choose to take my services to promote his website or online presence if there is a local directory which gives him better value for money by sending him more clients.

I could not fathom how I could benefit the local businesses with my internet marketing skills. My question for discussion on the forum is that
How can I, being an internet marketer help a local business to drive more
clients and more sales with my specialized services..How can I
diversify my services so that I could command an essential service provider
status for these small local businesses like doctors, gyms, travel agents,
garment shops, private institutions,beauty salons,jewellery shops, restaurants etc. I would also like to know the points I could highlight to the local business owner as to where "an seo service with internet marketing skills" could outrank a local directory listing.

Hopefully the warriors would be able to guide me on these lines and provide some essential tips for going about with my business.