I wonder what the dealer's cost on the longarm is? If there isn't much margin (IOW, if the manufacturer charges the dealer close to retail price), I could understand charging for setup.
I was charged for mine. I could have bought manufacturer-direct or from the dealer for the exact same price. I bought from the dealer so I could have them set it up, and did pay somewhere between $250 and $500 for that. The dealer also delivered the LA, and provided several hours of training for that cost.