In most cases, because they've had a WalMart BSO that was uncomfortable and then fell apart, and think LBSs are unreasonable for wanting more than WalMart prices.

Seriously. I've got some completely rebuilt bikes out front right now that range from $140-350, (The $350 one has almost nothing original left other than the frameset and wheelset. Others vary depending on what components they came with. All are mechanically far better than anything at WM.) and people complain about the "high" prices.

Had a guy come in last week and get $300 worth of repairs to a couple of WalMart bikes, and he even commented on how we charge "too much" for bikes that won't need those repairs in their first year.