That sounds a bit outrageous to me. I have a Juki and a Bernina. My Juki is mechanical and I looked yours up and it appears to be as well. If so they are very easy to maintain yourself. I also have a high end Bernina (computerized) and servicing is a fraction of what they quoted you.
$199 per year to service a mechanical machine? That's crazy. ( unless I'm missing something here.)