Generally, bikes at a good lbs are marked up around 40%, so a bike costing the dealer $1,000 would retail for around $1,395. Out of the $395 comes shipping: paying a competent mechanic a decent wage to assemble, adjust, & test ride the bike: displaying the bike; spending a good deal of time getting to know the customer, answering questions, sharing expertise & experience, and readying the appropriate bike(s) for a test ride; cleaning the bike up after the ride; and performing a couple of post sale adjustments. After that are the fixed costs of rent, utilities, inventory, liability insurance, some advertising, local advocacy, and lest we forget, hopefully a bit of salary for the owner. It would seem that $395 buys a lot, and I haven't even mentioned the value of the satisfaction the customer feels about the experience of buying the right bike from a quality shop.

In short, pay the asking price. It's already a bargain!