My LBS (small chain) wouldn't deal much in pricing (basically from 0 to maybe $100). On the S1, they implied that they would be willing to deal a little bit but not much.

I did end up finding a much more reputable shop (basically one of the best in the region) who worked with me and ended up giving me an 18% discount which I felt was awesome ($3500 bike for $2880) that comes with lifetime fitting (as opposed to 1 yr by my local shop), etc. The only downside is that this shop is 100 miles away but they have some great routes over there so I drive out there every now and then anyway.

If your local shop is not willing to budge on price, you should look around for a better deal. The economy isn't so good and I'll be that these bikes are harder to move. I was also looking at the Cervelo S1 and their price to me was $1820. They may not go that low anymore (it was a special promotional day) but I'm pretty sure that they will go down to $2000 on that bike.