If it is a 2005, then you should be able to get a better deal than that. List price on the Trek website for the 2005 was $1679 (I pretty sure about that). Maybe you can call around to some other Trek dealers in your area. Since the new model years are out, they should be able to offer a pretty good discount on the 2005s. Of course finding your size at another shop might be a problem.

At my LBS they also mark down the price if you pay by cash or check. They have to pay the credit card company or Trek financing a percentage otherwise.