$25 seems really steep but a 3"er around here would be $5.99. Pretty common species. It would be a good idea to grow him out a few inches in a smaller tank if at all possible!
Could be another result of the extended cold temps here in Florida. If stores are buying from Fl farmers or other southern farms with diminished stocks, they could be paying higher prices. Then they would have to extend those higher prices to customers. This may or may not be the case for you. There could be something entirely different effecting your local LFS rates.
$25 for a jag, that is alot for one 3 inches, much less for one 6 inches, go to petsmart you can pick up a jag about that size for like $4 thats where i picked mine up from. i sold 2 around 9 inches each on craigslist here in ga a few months back for $20 for the both of them, got the fish for free, i couldnt keep them at the time.