A lot depends on the city, or region, you are shopping in. $1200 does seem weak, unless you are on the west coast. I am picking up my TEP with KDSS next week for $38,750 before TTL. I could have got $38,500 if I wanted a different color. I did not shop for non-premium with KDSS so I cannot comment on how difficult they are to find. It did require some time and effort to get below $39k and I do have to travel to get the one I want.
You just have to try as many dealerships as you can and remember that each one is different. For instance, I am going to Denver to get mine, which seems to be a difficult area to negotiate. I tried a couple dealers in that area and all were at least $1k more than what I am getting mine for and not willing to deal. I was getting ready to purchase one from another state when I gave one more Denver dealer a try and they had two in transit a couple weeks out. One was already spoken for and they were willing to deal on the other as long as I guaranteed delivery by the end of the month. So I figured they were trying to get their volume up for whatever reason.
This thread has been very helpful to me. I went back and found the lowest prices people have paid for the build I wanted and used that as my goal price range. Patience and determination are needed for sure. And remember that 5-7% off MSRP should usually be your goal.