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That sounds about right from my experience. I bought my Sirius tuner on ebay (for around $250 IIRC) and installed it myself (changed the can bus wiring, etc, requires some trim removal and such) and had had the dealer do the programming. It was still about a half hour of labor for the programming, and the install takes some time fussing with the fiber optic cables under the rear seat trim, etc.
Sounds like the dealer isn't charging you more than an hour of labor after parts and tax, which is reasonable.
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