They still don't really understand the web, and they hired someone who appeared professional to them (and probably cold called them). Only after a while do they realise they're paying a lot of money for something unquantifiable and with no guarantee of hitting the front-page of Google, and so they end that relationship (in fear, as they're told that whatever placement they now have may be in jeopardy).
So starts the merry-go-round, where the smaller merchants constantly jump from one bad SEO company to another. Each one creating mess, whilst claiming they'll clean up the mess before.
I do feel for the smaller merchants. Their business is being eaten by the internet, and they're missing out and have ambition but are being fleeced by sharks every step of the way.