^^^^^ What he says
My wife and I own a small retail shop (bridal, pageant and formal wear) We get very, very tired of people coming in and "demanding" a discount or "what are you going to give me for shopping here" etc. We have return customers that we will try and give something back to, because they have been coming to us since we first opened. Small businesses are a day to day struggle all we can offer is service. We cannot compete with internet or big box store pricing. For every customer that buys something in our store we have 3 or 4 that come in to check sizing or pricing and then either purchase somewhere else or order over the internet. A hazard of doing business in these days. But for every person that does that we have to raise our prices a bit to maintain our overhead. It costs money to keep the doors open and pay the employees whether someone purchases something or not.
That being said...if I were to purchase something from the LBS and I don't feel like installing it I would ask how much and then decide if I want to have them do it or not. FWIW usually I don't have them install stuff, because I am very particular in how things are done on my bikes. YMMV.
If the price is acceptable have them do it, if not decline. If they offer to do it for free, accept graciously, but don't please don't expect it the next time.
Aaron