What the hell is going on with shops?

My mechanic friend left a large dealership several years ago, and opened his own in his 2 car garage. In the country, with no advertiseing, except word of mouth. Example, he rebuilt my son's transmission in his '99 Dodge truck, for less than half what the dealership, and 2 other shops quoted him. He now has 5 bays, with 3 lifts, plus a 2 bay bike shop, and 5 guys working for him, and a waiting list to get in. And yes he is certified. He told me, he is in this to make a living, just doesn't try to make it off of every job.