Hi,
I bought my 2003 kdx 220 in dec 2002 for $4100 out the door, I have heard of prices as low as $3900. Most dealers charge the msrp and then an aditional charge for freight, and other BS. When I was looking, the jerks at Freedom Kawasaki in grandview, Mo Had a left over 2001 still on the showroom floor, and were willing to sell me that one for the very special price of.. $4050, I told them to stuff it and enjoy paying tax on it for another year.
I think factory invoice price on the 220's was right arroung $3700-3800. So it is possible to get it cheap, but keep in mind that the dealership is not a charity and has to make money some how. I would try calling dealerships within driving distance, I had to drive an hour east to get mine but I saved $300 off the bike and another $300 for the freight and handleing BS fees the local dealers would have charged.
Basically, they guys sound like jerks, and I would look somewere else