500 is a good chunk of change for most/a lot of people. now lord knows breeders dont have 500 into the puppies, maybe 200. my best bet is finding one without papers.
I think you are pretty uninformed as to what actually goes in to breeding a litter of quality puppies and don't realize what you are getting when you spend a little more for a puppy from a quality breeder. I am a GSP breeder and not a lab breeder, but I can give you a little input as to the actual costs of having a litter.
First off, I am going to forget about the actual purchase price of the bitch that I am going to breed. What I have done though is spent, at minimum, $1000 (more realistically $2000-$3000) in training and testing this dog to prove that it is worthy of being bred. After that, I will spend about $200 in vet bills and OFA fees for the hips and elbows to be examined. Then $100 more for the eyes to be checked and another $100-$200 for a cardiac exam. Then I am going to pay for a brucellosis test, which is a sexually transmitted disease in dogs. Lab breeders also need to have them tested for EIC and CNM, both terrible and unfortunately common diseases. More expense there.
After that, I will find a stud dog that has gone through the same proving process and also passed all the health clearances. Guess what, here comes a stud fee. At a minimum this is going to be $600, but more likely in the $800-$1200 range. I am going to forget about all the costs that go with driving half way across the country to have her bred and then the return trip to pick her up after it has been done.
Well now that she is bred, here comes an ultrasound and another x-ray to get an idea of the litter size so we can be sure that it is delivered safely. $200 more. Built a new whelping box so the puppies have a safe place to grow up, $150 more.
Time for being born. If all goes well, you can get by with a couple shots of oxytocin and not much else. One gets stuck though and you make another trip to the vet for more x-rays and hopefully not a c-section. So the birth process can range anywhere from $10-$600.
Now that the puppies are born, they need to be taken care of. That includes vet trips, dew claw removal, tail docking (in my situation), shots and wormer. Hopefully none of them will have any injuries from being in a whelping box for the first 3-4 weeks of their lives. Count on another $200-$500 there.
Oops, they need to be fed too. Powdered formula, goats milk and dry dog food, $200 more.
If you get the idea, all this has been done and we haven't even done anything to sell them yet, so you can figure in website and advertising expenses.
Here's the deal. A reputable breeder earns every penny they might make from their puppies. 4-6 hours a day are dedicated to raising them properly and caring for them. After they are sold, they come with health guarantees and I also guarantee mine will hunt. After they are sold, my phone is available to be called any time you need help with training or a question about a health issue. Sometimes that little peace of mind is worth a little extra. Now tell me that the breeders don't have much into the puppies. I figure I earned about $4 an hour on the last litter of 8 I had. At least that is what I am telling myself to make me feel somewhat good about it. It was likely much less.