Charging A Fee To Demo An Amplifier In A Brick & Mortar Store

«Similarly, when I tried to test drive a Honda S2000 back when they were new, the dealer declined to let me. Reason? He was getting inundated with requests for test drives with very few buyers. »- DualMarantz

The same thing happened to me!
Since I anticipated it, I showed to the unfriendly rep my NSX key and said: If you think I do not qualify for a S2000!
Would have never bought from him, and this seller made a mistake because I bought one later ...

Regarding OP situation, I concur that nowadays it is difficult for B&M businesses, but it is part of their job to spend time promoting and trying to sell what they have to offer.

Obviously, I would consider as serious a guy who owns Pass Labs gear and shows interest in tubes monoblocks and would not try to put unnecessary and unfriendly obstacles in the process  ...

For those saying that he will buy elsewhere online, we are not talking about common pieces of hifi gear ...

I would not pay that 500$ fee, customer is king, I would even convince him, after an in store listening, to try them at home, and for free!

You want to sell them? Well, you’ll have to work and convince me.

You don’t want to take this route, you only want to make a quick and easy sale and wait for your sucker? Then you will have to accept a nice discount over your asking price !!!

Such first world problems. How ever will the human race survive?

"This is at least a 8 hour job."

How long does it take for those amplifiers to be assembled in the factory?

"...there is NO PROFIT on this at all."

Raise the price. $40 000 and no whining.

Only key piece of information:

"These are packed and put away. Can you tell me what kind of system would you want it demonstrated with ? Please call the store...Probably $500.00 which will be applied to purchase price of $16995.00"

Translation:   My overdue electric bill is about $500.....

The dealer tried to justify this expense/charge by stating that time was involved in setting up a system for the demo of these amps.  THAT IS WHAT A DEALER DOES !  THAT IS THE REASON WHY B/M SHOPS ARE DIFFERENT THAN ONLINE  SELLERS !    Dealers and B/M shops are expected to provide a higher and different level of service than an online vendor.   If a DEALER is unwilling to provide these services, or is oblivious  to the need to do so, then the Dealer should find another line of work.

20+yrs ago I encountered a "by appointment only" dealer who tried to extract a demo charge before setting an appointment.  The dealer had several pieces I was interested in, and the price points were acceptable to me.  My reply was laughter.   I found another area dealer who had the same items, at roughly the same price points, and I purchased what I wanted to purchase.  No charge to demo, or set an appointment, or walk into the store.   I later went back to the offending dealer and showed him a copy of my receipt as evidence of my purchases.   He was not happy.  I quietly explained that I would have done business with him, but found his demo charge to be offensive.  I then found a more accommodating dealer who received my business.  Offending dealer went out of business within 12mos of my interactions with him.  

The market always wins.