This has all been very enlightening.
I recently bought from a few hundred miles away. I shopped around, and really wanted to stick with my local dealer since I bought my first tractor from him (as well as a rotary cutter and box blade). He was a little higher than some, but close to most. I pretty much knew I was going to buy my second tractor from him.
I decided that I would try Barlows, and just get an idea of what their price was like. In the end, they saved me about 3K on the tractor. Now to me, if my local dealer had been 1K in range, then I would have still gone local without a second thought, but 3K was a big difference to me on a small tractor. I thought about the service and warranty real hard.
I decided to go with Barlow's, and I knew the risk I was taking. I sent an email to my dealer explaining that I had found a tractor that better aligned with my budget needs, and hoped that I could still frequent there for supplies and equipment, and was not burning bridges. If I did burn the bridge, then I apologized in advance. I was kind of hoping he would have responded back with a second offer, but he didn't. That was tough for me, and I did not even know at the time all this information that has been exposed in this thread.
As it turned out, I did have a few small issues with the Barlow's tractor. However, to their credit, they sent me the parts free of charge to replace anything, and I did the labor. I don't mind doing the labor, since then I know exactly how the work was performed. Brady was very responsive to any issues I had. I think he realizes the situation, and tries his best to make it work out for the customers the best he can. I have no complaints and have heard nothing but good things about them.
My local dealer did reply back, and although I could tell he was disappointed, he pretty much said they would be there if I needed them in the future. They would not be able to do the free things like pickup and steam clean, but certainly there for normal work. I told him that was understandable, and I have been back to his store several times since then to buy supplies. Last week I was there and bought a new leaf blower. I plan to but a rotary tiller soon from him as well. He seems fine, and I hope it stays that way. He is a really nice person, and now I really feel guilty, but I am a pushover for people's feelings.
In retrospect, my only regret is that I should have been more direct with my local dealer, saying if you can meet me somewhere in the middle we have a deal. But, I think it all turned out ok in the long run. If I can get the parts under warranty, I like doing the work myself (within my limited abilities that is!)
That's my take on it.
Again, he is a good guy / local dealer.