Run away from this LBS! You can get nice bikes for your price range, so for them to say that is unacceptable. It seems like they are trying to push that 50 cm Trek onto you.
I really recommend test riding lots of bikes (and not just around the parking lot. If possible, see if you can ride it for a couple of miles, even if that means they need to send somebody else out with you). $1000-$1,200 is a lot in this current economy so the LBS has to treat you like a valued customer, not just somebody they can get money out of. After all, if they treat you well and are honest, you'll keep coming back there to buy other things (clothes, shoes, helmets, bike accessories, maybe even an upgrade).
Nothing worse than buying the wrong bike. Trust me, been there, done that. After 7 months I was ready to give up cycling, until I got my Trek, which fits me like a glove.
Don't rush into it, and try to find an LBS that also offers professional bike fittings - not just somebody who knows how to set up a bike on the trainer and pulls out his little rulers and all he does is adjust the seat height.
Good luck!




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