Ok - so from what I'm hearing their are some differences between US and UK dealers. In the UK we have suggested manufacturers basic list price along with the governments tax & to top it off we pay to register the car in this country for the first time (big con) & road fund license for 6 months or one year.
It's unavoidable in any aspect of the sales arena, you have to have a profit margin & to retain a fair percentage it's only reasonable, as much as it greaves you jsisbella its very unlikely to ever change.
It's also fair to say that if you have a great dealer whose sales & aftersales is 2nd to none but is making no money will not be there long term, to the point that you've even said that you don't mind paying a little extra to ensure smooth ownership in the event of any problems - I agreein supporting the local agent.
Apart from Asda(walmart) - we also have other shops like Tesco, Sainsburys & not forgetting Marks & Spencers, all very good retailers in the UK, the first 2 slug it out on a daily basis but M & S don't profess to be the cheapest - but do advertise quality.
Perhaps thats the way forward.
What sort of business do you have ??