Hi, John.
How long has it been since you started optimizing your website?
Adding unique, informative content to your website, combined with link building should be enough to compete in local markets. Try to see your competitor's metrics by analyzing their URLs with OpenSiteExplorer.
Adding your company's phone number to meta description will display it in search results. You can also add your location to the Google Places platform.
Best of luck, and let us know how it goes!