No, he's not an ass. He is doing what we do in this lovely free market, which is looking for the best price, but giving the bike shop a chance to make a profit (albeit smaller). If you expect us to believe that you walk into the first store you see and buy without comparing prices, your sanctimonious attitude has betrayed you, you're the ass.
His answer is probably the best so far: give them a chance to compete. He isn't asking them to go below cost, just to lower their profit margin. Stores, car dealerships, service industries, all do this regularly to form relationships with customers and, above all, stay competitive.

Keep the name calling to yourself and stop trolling other people's actual contributions to the discussion.