I dreaded this scenario on my 650 recently. Eventually, I did get the deal I wanted. You need to be fairly agressive about it all.
Sorry it didn't work out for you. I got up and left twice, during our "negotiations", only to be followed by sales bloke begging me to go back!
I ended up with bike at 6k and £200 over book on GSX1400 PX. Don't get me wrong, dealer will make my money on my bike. However, I was happy with deal overall. They also threw in a helmet and gloves (Long story).
I suppose it depends on how busy dealer is and how keen they are to sell. Maybe try another?