Just do a search on 'outrageous 1st service quotes' -- you'll get the full range of prices that dealership service shops have been charging members. Mine was NZ$218 (approx US$165) including valve clearance inspection.
Just a guess: maybe dealer margins on new bikes are comparatively low with the main income coming from used bike sales, parts, accessories and servicing? Maybe, the dealership has to meet a sales quota for new units sold per month / quarter that is set by the manufacturer.It's only just dawned on me... When you buy a car, the first service (normally also 1,000 km) is usually free (Mazda, Subaru, Toyota and Audi at least). Why are bikes have so different? Curious.