Depends. The local stores overhead is going to be the same whether they are selling $130 jackets or $400 jackets but a $70 markup might seem livable with one but outrageous on the other. It also depends on taxes (was that $200 after or before tax?).
For example: my pants cost $400 on Motorcycle Superstore with zero tax. At my local store they were $420 but after tax it was closer to $460. I ended up paying $60 more than if I bought online but the store only got an extra $20, more than fair considering they had staff helping me out.
I’m not saying buy local over online all the time. It’s a personal choice and I do both depending on what I am buying. My experience has been the local shops are run by enthusiasts and you get fantastic service. I’m sure there are plenty of rip off merchants out there but the same applies to online stores. I would hate to see the local shops disappear though. After 60 years in business that Honda store shut down and now my options are less. That store supported my MSF class and gave me a 20% discount on gear for taking the class. They also talked me out of replacing my helmet later when there was no need. I would gladly pay extra to support a place like that.