Dealership Car Purchase help?

I'm buying a car for the first time, and am looking at buying from a dealership. Since i've never done it before, whats the typical negotiation range as far as price? Anyone have any advice? The car i'm looking at is listed at $9800, the "True market value" from edmunds.com says about $7100, and KBB says about the same. I dont know why there's such a gap. I'd think saying "I'll pay $7100 for it" is a slap to the dealers face, but is it possible to get the car for say $8,000 or even $8500? or is a dealership only going to budge a couple hundred bucks? Just thought i'd see if anyone on here has advice, maybe works at a dealership or has before. Thanks in advance!