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To me, pricing is one of the most intellectually interesting aspects of microeconomics.
To start, we have the supply and demand curve, which often gets simplified to: More demand = higher prices and vice versa. This is true to a point, but more true for goods with a high price elasticity of demand.
Price elasticity of demand can be simplified to the principle that the less you need something, the more your demand will change according to price. For example, when there is a big sale on Apple Macs, a lot more volume is sold.
PED is also relative, so a label maker, while pretty elastic to a general consumer is less elastic to a business, particularly an office with physical files. So less price demand elasticity results in less effect on demand from the office of prices.
Along with this background, we can see that as the office goods supplier is over the road from your office, we may assume there are other offices that it is central to. A smaller store may even generate more business than a larger, cheaper operator by being more flexible, say offering 60 instead of 30 day terms.
As offices tend to be less elastic in their demand for office goods, as a retailer, it would make sense to cater to the offices by selling a smaller volume of goods with a higher margin to achieve the same overall level of profit as the larger operator. This would enable the store to be smaller with fewer staff, less storage space, lower insurance etc.
For example:
1000 $15 gadgets sold at $35 each with $10 overheads per unit = $10,000 profit
250 $15 gadgets sold at $60 each with $5 overheads per unit = $10,000 profit
Another important factor that is not taken into account is unquantifiable risk. Basically the bigger an operation is, the more complicated and so the more failure points there are. For example as a smaller operator with accounts with only a few large clients, you are better able to manage inventory so your risk exposure to storage, transport and saleability is also much lower.
However, an entrepreneurial person may see a business happily eking out a comfortable living by applying the above business model when they see that the overall budget being spent by general consumers on office goods in a particular locality may outweigh that spent by business. In that case, they may then make the decision to take on the exponentially larger risk of a high volume, low margin business model for the potential reward of higher profits.
Now having said the above, I am not making any value judgements. There is a place for both models and it is fairly rare that a business is being "greedy", instead they are often taking a rational approach based on the owner's perception of the marketplace in which they operate.
There is no sin in different store owners making a profit (farming to a surplus is what got us started on the path to civilisation after all) of a size and in a manner of their choosing - at the end of the day it really is up to the potential consumer to determine which store is the one for them.
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