It's simply because; Some shops are greedy.
The "average" auto trans (W/O 'hard' parts)costs about $90 in parts and about 1.5 hr. to rebuild.
Add to this the insane EPA regulations, hard to find builders, new/rebuilt converter & other business expenses, is how it gets there.
If you can find a shop that will R&R and build your trans for 7-$800 "go for it". You'll be ahead in the long run.
If your trans is out you could use that as a core & buy one "carry out" with a converter from a local shop & be okay too.
The 'catch' here is; Can you do the instlation properly and make the initial adjustments???
Good luck, John M...