For the prices, I'd say your grain is more expensive, shipping is more expensive, your yeast is more expensive and you guys charge a fee to crush.
Just to add my two cents here. I did a group buy for some grain, and drove out to the Morebeer in Concord to snag it (since sacks are actual shipping price, and I was getting six sacks of grain plus another 60lbs of various grains to stock my library, now that I finished my crusher)
I got sacks of two row for $32.75 each. That's 65 cents a pound.
I got sacks of crystal for $42.75 each. That's 85 cents a pound.
Their yeast is $6.25 a tube for White Labs. My LHBS sells them for $7.95 and $7.49 respectively. I think I've seen them online at someplace else for $5.99, tho.
As to their shipping, I've ordered a bunch of stuff from them over the past year, and anything over $59 (it always tends to be over that, for me) has been free - including kegs. The one time it wasn't free, it was something like $6.
Charging a fee to crush is kinda weak, tho. Every other place I know of does that free. But just saying - they might not be the cheapest around for everything (those sacks of grain were an awesome deal, tho) but they're hardly OTT expensive. (Like Macys, the basts!)