Do companies who use the domain name strategy SERVICE+LOCATION like drycleaningmanhattan or locksmithdayton or autoshopcharlotte Do they work well where you put in the generic service and then the location? How does Google treat sites like these? Is this a good strategy to follow or not?
It actually helps a lot in terms of SEO viewpoint. It's like establishing yourself and making a name for the niche you are in.
Keyword in domain main will help, but not very much. Try to select a name that people can easily remember and is easy to type it too.
Using subdomains is good also. Something like: manhattan.drycleaning.com manhattan-area.drycleaning.com 1-800-manhattan.drycleaning.com Etc Remember you can build as many subdomains as you wish. Just be carefull to put unique and good content on each one.
Using a keyword in the domain name is a good start. make sure your main keywords line up in the title and h1, check out this example: notice the domain, meta tags, and location links on the top left. http://www.seattlehousecleaning.net/
Yes such thing help very much specially when someone makes search related to local services . Go for it this will help you a lot .