Price vs Value
Comments debate the distinction between price and value, emphasizing that prices are set by what customers are willing to pay based on perceived value, not production costs.
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Cost doesn't set price. Value sets price
For some people, value != price
When people say X should cost Y, what they really mean is that they only value X at Y.You can't get them to increase their valuation by arguing that X can't be made profitably for price Y.
Not forgetting that things are priced by what people will pay for them..
Things are worth what people are willing to pay for them.
While the price might be ridiculous for you, the price is not ridiculous for the people in the market for it.
Pricing would be based on value. Someone who's willing to pay X is more valuable than someone who's only willing to pay 0.1X, so naturally the former should pay more.
Price and value are far from the same thing
You're assuming that prices don't reflect value. Isn't that a sketchy premise?
Things are worth what people are willing to pay for them, generally.