Retail prices are retail prices - the catalog company doesn't set them - the manufacturer does. Whether or not a company sells at MSRP depends on several things - competition, and the practice of the company making the product. Certain industries maintain price-protected products that everyone who sells them sells for. Others. (including most gun makers) do not.
If your local guy wants to sell S&W at MSRP, he'll find that the local competition does not and he will need to adjust his pricing accordingly.