Product differentiation: It's not just another 3-inch 1911. It's redesigned to fit those shorter cartridges. While this might not mean much to some consumers, to others it makes potential substitutes seem less similar. (Less likely to be reliable, etc.) That allows the company to charge more.
There might also be a difference in production costs (lost economies of scope due to it having a different frame, etc.) and it is a very nice pistol (I want one), but I would be surprised if their profit margin isn't relatively high on the EMPs.