Was the bike purchased at full listed price, or was it on sale or haggled down in price? It really isn't the dollar amount spent as much as the profit margin that would sway my answer.
As a consumer in local bike shops, I have made it clear that all I expect is a fair deal on purchases with respect to competing businesses, be them local or online. If the local shop is fair in their pricing, I will gladly purchase my complete bikes, parts, accessories, & special orders locally, and not expect anything else as a reward for my business.
I work in a small business retail environment also, and have a good understanding of what a brick and mortar shop needs to make in profit and margin in order to stay operational. These numbers can get fouled up pretty quickly when give-aways are expected with every major purchase. I think service plans and the like are added-on as a sort of 'thank you for your business' reward to the purchaser, as it is a useful service to the consumer, and doesn't adversely affect the bottom line as much as giving away or deeply discounting inventory.