You're probably pretty high on the cost. We ordered my wife's bike on-line and had our LBS set it up with some modifications and the total cost was ~ $200. Would likely have been half that just to assemble it. I purchased a vintage bike and had them rebuild the drivetrain at the same time. The bike shop guys commented that it was a good deal for them as they made as much as they would have selling us new bikes (they market largely to students and have a fairly low end inventory - nothing over $1,000).
(I will note that my wife bought a Salsa which our dealer could not order. We did talk to them in advance to make sure they couldn't order it before we bought on-line.)