The cost of doing business in Edmonton is much cheaper than in Vancouver. For the fish business, shipping costs will be more, but overhead costs should make up for that.
Bottom line the extra shipping costs hold no weight, because it is cheaper for me to fly fish in from Vancouver to my house than to buy at the LFS, so the LFS here are marking up far more than just the extra shipping cost.
But it comes down to competition. They are free to charge prices that keep them in business. Whether they could generate more buiness at lower margins and make more $$$ overall is tough to say. But with high prices they don't get the same volume going through the shop, so they don't get as good a volume discount, which increase costs, so they have to markup more. A visious cycle that could eventually lead to too few customers willing to pay high prices, and the shop will go under.
Some vancouver retailers are obviously doing a great job at managing inventory, and have good purchasing skill and general business management skills, hats off to them.
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