When I bought it (at launch) the 8GB model was just under $250 including shipping, and the 16GB model was $275. (I checked my receipt.) The prices have changed somewhat since then.
In any event, the $199 price struck me as highly misleading at the time.
I have the 8 GB Nexus 7 and I bought it at launch. I just checked and the total price I paid (device + shipping + tax) came to $230.03. I don't remember which delivery method I chose, perhaps you chose an expedited shipping option?
In any event, the $199 price struck me as highly misleading at the time.