Should I expect a discount from dealer for buying and installing complete system

Labor should absolutely be non-negotiable!  You have only yourself to blame for a mess and no warranty support on product if something goes wrong and you have someone else do the installation. Don’t listen to these people who are clueless as to the price of labor either. I work in the Pro AV market and no one negotiated labor nor should they and are charging you a fair deal.

Get multiple bids and visit other dealers for different pieces. IMO the dealer thinks he’s got you hooked and doesn’t need to negotiate. Tell him you are going to get multiple bids and listen to other systems and he might comeback with a better deal.

Right I’m not asking for a discount on labor. I think the price quoted is fair. My question was should I get a package deal on the equipment as I am probably spending $13 or $14 thousand on the gear. I don’t have the attitude at all that they are cutthroat and out to fleece me. I like them and trust them enough if they say Sony ES is the right receiver for me I will go along. They have tried to convince me to buy lower level equipment that they say will work with my speakers but I’m willing to spend more to get a higher level. 
I think 15% would be reasonable discount. If they no i’m Not going elsewhere as this is the top store

OK, as another former dealer, let's break down his/her costs for the labor.  Yes, paying the people 30-50/hr is in line with your area, which is a very expensive area to do business in.  The truck the labor people use cost about $125 every time it leaves the shop--payments, taxes, insurance, licenses, regular maintenance--you do want it to make it to your house, right?  So, no, he does not pay the people 125/hr, but it costs him a bundle to drive around in a van/truck with two people on the clock.  Maybe 125 is his break even point, but then why be in business unless you make enough to STAY in business?  Gotta be some profit in there somewhere.

As for the gear, there is NO MONEY in TV's at all.  Sony used to mark up 21% and my overhead was 23%, so I lost money on every Sony I sold.  I had to make it up on delivery and installation charges, unfortunately.  If you loaded it in your car yourself, money went out my door.

As for the rest of the gear, I have no idea but people on here who sell or have sold that stuff have posted some info.  I like the idea of asking if he would do it for 15K and see where it goes.  He knows how much he is making and will do what he can to save the sale, I would guess, since you are a good customer of long standing.  OR he might offer you a "free" service agreement of some sort to ensure your complicated system is working to its maximum capability.  I would be surprised if you did not have at least 2 visits in the next few months to make adjustments.  That truck still costs 125 every time it rolls whether you are paying or not, so that MIGHT be a better deal than a huge discount up front.  As I tell most people, when you buy a car, you are buying the warranty, nothing more.  Same here in some respects.

Ask--all he can do is counter at a higher number or say no.  Either way, you MUST have a agreement for support for the next few months or so.

Cheers, and enjoy the music!!