I looked at this and ... said the same thing you did: shops charge too much. Then, I sat down and said "this could be a good business opportunity. I could charge less, and take all their business!" so I sat down and looked at what it would take to do this.
I'd have to attend regulator repair clinics for every manufacturer. I'd have to get insurance. File business and tax paperwork. Buy equipment. Keep up to date by attending repair clinics as new regulators came out. Plus, pay my labor charge. It takes time to rebuild a regulator.
If the regulator or valve is not for oxygen use, it can get a very quick or possibly even no cleaning. Does it look good? Well then, it's probably fine for air. Throw in some dirt cheap nitrile orings and some dirt cheap silicone grease, and reassemble. I can rebuild a valve in what, 2 minutes, maybe less, if it's for air.
If it's for oxygen use, it takes quite a bit longer. Dissassemble, and keep all parts organized. Leave them in the ultrasonic cleaner ($600 or more) in the expensive fluid to remove all corrosion and hydrocarbons, along with all that silicone grease other repair techs put on the reg...some regs look clean after a short cycle, but I've cleaned some that required more than 30 minutes in there, with a soft toothbrush to help remove larger grease buildup. Of course, this dirties my expensive cleaning fluid, leading to changes, every rebuild might cost me $3 in cleaning fluid alone.
Then, I've got to rinse and dry, all while not getting the parts dirty, which means ultra clean hands and minimal handling, perhaps while wearing gloves. Replace all orings with viton, which arent nearly as cheap as nitrile. If you buy them from diving supply stores, then the price is just outrageious. If you buy in bulk or from non diving stores, you can save some money, but how many shops do that? Then, rebuild with the proper lube, which costs $30 per 2 oz. So far, it's taken me an hour for the first stage alone, to go from assembled to rebuilt properly clean. Perhaps $10 of materials, or more, and my time, and variable overhead such as electricity and lighting, or waste. Now, I have to correctly set the IP and cycle the reg. A reg cycling thingymajig is $285 alone. IP guages and magnehelics and things, to properly outfit a dive repair shop with the proper tools for every regulator, could easily cost five grand. Gotta make that back somehow!
Some shops check to make sure hydrocarbons are removed with a blacklight. I'm not sure that's super effective, so I just clean them right the first time
(ok if you have one, they can be useful, but I don't...)
I'm working on completing my own reg repair capabilities. I've spent well over $300, and I've done it the cheapest ways possible.
I like to clean all of my own equipment to oxygen clean standards, and I do it right, and do it well. If you wanted me to service your regulators, even though I'm not properly certified to work on them (I am in the process of finishing a HOG regulator repair course, will be certified to repair those soon. I've rebuilt most of my regulators and they have worked fine for me.), I would quote you a price very similar to a dive shop, because my time is valuable, and I have quite a bit of overhead to recoup. (for example, to finish the HOG course, I need to own one more HOG first stage, a balanced piston, which will cost me $175 to buy)
If there really was a huge market for cheaper regulator repair, why don't you create a business plan to take advantage of the profits you could reap by offering lower priced regulator repair. Then, take the plan to a venture capitalist. See what they say about your plan. My guess is, you'll find that shops are not making an arm and a leg on proper service, and that you cannot steal all the market share by sweeping in with lower prices, because you will have to charge a similar price in order to break even. I could be wrong. I wouldn't ever take a regulator to your business knowing that you would use silicone for my oxygen regulators.
Keep in mind that pricing is not only based on cost. There are many theories behind pricing. Microsoft sold the XBox at a loss of over $100 per unit at first to gain market share. Many argue that dive shops sell air fills at a loss to get customers in. Pricing can also be based on what the market will bear. This can be changed by the introduction of competitors: perfect markets, economically speaking, are those in which prices are perfectly equal to marginal cost and there are no profits to be made. Monopolies, oligopolies, and market imperfections all enable shops to charge a price above marginal cost.
Finally, not every shop charges different prices, some have a flat fee for regulator service, and reassemble everything in an oxygen clean manner, making your premise, that oxygen cleaning costs more than regular overhauling, invalid.
Even more finally, you really, really, really, really need to realize that Christolube and Tribolube are not silicone. Your inability to grasp that concept and fact, and inability to admit you were wrong on something, makes it very difficult for people to have a productive debate with you. It makes you seem like a troll.