Idaho45guy,
I don't know what a Les Schwab is, must be a western chain?
The cost spread for tires ordered over the internet verses what I can buy them for locally is not as extreme as your example. I don't doubt you at all, but there may be a huge difference in tire prices in western states as compared to eastern U.S.
Several of the smaller local dealers can match internet prices or even sometimes beat them. Tires have become very expensive so I do the math and shop when I need tires. Most tire shops will charge considerably more than their normal rate to mount and balance tires you bring to them verses tires you buy from them. I can't say I blame them. Tires are difficult to ship and take up a lot of storage space. If a shop doesn't have the tire you want, just about any shop can get a set overnight.
Tires are not something I buy on a whim. Unless I've suffered some type of sudden tire damage, I have time to research and plan tire purchases. Back "in the day" (when I had very little money) I would buy used tires at junk yards, recaps and no-name economy brands. I would put them on the wheels myself, dispose of the old tires and get the new ones balanced later. I can still do that if needed but I longer make a practice of that type of endeavor.
I've done the math and short of doing the entire job myself, I cannot beat the price of my local dealers. I have absolutely no doubt what you have stated is the absolute truth but I don't think we are in the same market.