I can drive to North Country Malt in upper NY, so I bought bulk grain from them, about $33 for a 55lb sack of 2row. They also sell hops in bulk, about $18-$22 per pound, depending on variety. So, the Oktoberfest I'm making today will run about $17 in materials, because I needed to buy 5lbs of Vienna and a Wyeast lager propagator at the LHBS. If I pick up Vienna the next time I got to NCM, combined with yeast washing, it'll probably be about $12 per lager batch, which is about where my ales are. (Volume into fermenter: 5.5 gal.)
I also snagged a few extra Nottingham packs while I was there, he's still selling them for $1.80, but that'll get counted towards a different brew.
As other people have pointed out, this ignores travel costs, Barley Crusher, stir plate, scale, etc. However, a lot of these are sunk costs, and you'd likely end up buying them anyway.
As a shameless plug for good people, NCM is part of the Country Malt Group, and if you can drive to one, they have a great selection and really good prices if you buy a sack. The per pound prices are about the same as most LHBS, ~1.55 per pound. I ordered hops and had them shipped since I was too lazy to do the 2hr round trip drive, and it was about $8 in shipping, which works well for being on the East Coast. Freshops may be good, but shipping from one coast to the other is pricey!