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Cycling induced anoesis
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Given a college campus environment, I think AndrwSwitch makes a good argument for going used, but if for whatever reason you've decided to go new....

There's nothing wrong with the BD bike you linked to. The problem with a first time buyer going the online route is they're guessing on sizing (a biggie), will need to have someone do final assembly (even BD recommends a LBS do it), adjust the drivetrain, tweak fit for you (stem swaps are easy at your LBS, not so easy when dealing online), so when you start figuring in the added costs of the online bike and the added value an LBS offers, the 'savings' of buying online diminishes.

This isn't to say all LBS's are created equal. As you've found, that's not the case. So it becomes important to seek out the reputable shops and work with them on narrowing choices, getting sized/ set up on some bikes, and doing some test rides (impossible when dealing with the online guys).

Last thought. If you decide to go the online route, I suggest opting for a standard fitting (about $50) from a reputable LBS to pin down sizing requirements. Be upfront with them, show them the bike/ geo chart of the bike you're considering and ask that they size you on one of similar geo. When you've completed that process, you should have a reasonable idea of what size to buy. The better shops will be happy to help, because they see a customer in their not too distant future, for assembly/ tuning/ fit assistance along with bike related purchases.
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