I bought a preamp from them and being from the Denver area, I went to their place and picked it up. It's not just a guy working out of a garage, they actually have retail space with lots of gear to push. I saw a staff of about 4-5 people.
They'll do consignment or they'll buy outright. I have no idea the reasoning why they price things the way they do, but yeah they have a lot more overhead than a hobbyist.
I understand not liking so much structure in looking for gear - half of the fun is looking for that great deal. They're pricing may not be great, but if you looking for something specific and unable to find it else where, well the laws of supply/demand kick in
My opinion, YMMV