Presumably the KH model is the one that retails for around $500. The stores have a healthy markup, but the guy isn't a magician.. and nor is he likely to be a charity. The main difference between the ESP and LTD at a glance is that the ESP has higher spec 'proper' EMG pickups (which I'm personally not a fan of) and a better bridge. Construction is also likely to be better generally, and finish will be flawless on a $2000 instrument, where you might get the odd rough edge on the $500 version.
If it sounds too good to be true, it probably is....
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