That's the real world price for a 547. This model used a rather complex and sophisticated extractor mechanism so it didn't require the use of moon clips.
I suspect it turned into a money loser for S&W because the demand for it was too low to pay for the Design costs at the time it was in production. As a result, S&W decided to cut their losses and only produced it for a relatively short period.
Fast forward to today and due to ammunition costs there is a larger market for 9mm revolvers with very few offerings to meet that demand. End result of this is that a 547 that could not be sold 10 years ago at almost any price is now a highly desired revolver in short supply.
BTW, if you really want an eye opener, the model 610 that was in production just 4 years ago with a retail price in the 800-875 dollar range is now commanding prices as high as 1400 dollars on Gunbroker. I'm still slapping myself over that. I could have purchased three of the 4 inch 610's, sold two, and have one for myself for no cost except the monetary cost of tying up 1600 bucks for 4 years. Instead I purchased only the 6 1/2 inch version when if I had any sense I would have got both barrel lengths. Note, the 610 is a 10mm/40 S&W revolver.