This hobby is different that others in the respect that when your guns are handled and transferred from one place/person/owner/ect certain rules and restrictions apply. So its really necessary to have a relationship with a local gun shop, this means throwing them a bone, buying a couple guns off of them, building a relationship, ect. Then in the case of an outside transfer you will be ablle to say, "hey I am sending this gun to a smith" and in most cases when you found a decent shop they will take care of you... My local shop just has me print the shipping labels and bring it all in boxed up, they don't charge me anything to do the transfer, in or out, or when I buy a gun, but I am respectful about it, I won't buy a gun they have in stock or available to them from outside their shop, just because its cheaper, and in most cases I will show them the price I can get and they take care of me, match it, but I eat the tax...
So it seems like this shp is all about getting as much money off of you as possible, find a different one and move on...
Also next time, if you can not deal with a local smith, get the shop to tell you exactly the costs, chalk this one up to "live and learn"...
PS- Some shops are NOT internet friendly, some guys think the internet and gunbrokers destroyed their business, and it could be accurate but in any business you have to adapt to new market atmospheres, some guys are just not on that wagon yet and want to punish anyone not on the same page as them...