Local SEO should be more than getting your site ranked well on search engines. You need to also think what your web site ranking will look like!
Given the choice of being first for a category with no reviews, or third with 10 great reviews I would go with the third spot, and the reviews.
Reviews bring positive attention, and will more than likely bring more clicks to your web site.
There are several other factors that will affect how Google displays your web site. You need to manage all of those to get the right people to your site.
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