They may be Shelties that are a half inch too big, Pugs without enough curl in the tail, or Dalmatians with spots that aren't far enough apart. These pups have been raised with as much planning, medical attention and socialization as their show-quality littermates. They make the best possible pets. The show breeders just don't want anyone else to sell puppies cheaper than they do and ruin their business. Responsible breeding is not a business.
Most good breeders lose money on their litters.
This doesn't count any medical emergencies, such as a caesarian delivery. It also doesn't count all the fees for performance activities, such as conformation showing and obedience, that responsible breeders engage in to prove that their dogs are breed-worthy. This can easily cost several thousand dollars. The breeder said both parent dogs had been checked by a vet, so I guess the pups should be healthy. Most vets are not experts in canine reproduction.