I'm done reading bike forums for the day r-dub's post is insightful, and right on - no need to read anything else. Despite the fact that most bike parts have a very low use value, they have an very high exchange value.
Originally Posted by r-dub
One of the main problems is the assumption folks make about pricing methods. Too many people assume (incorrectly) that things are priced via a 'Cost Plus' model, where a seller figures out their costs and adds a little margin for running the business, shrinkage, 'profit', etc. In reality, most businesses in most industries price off of a 'Value' method. They charge the price that the market has determined is 'appropriate.' They charge $100 for double straps because people are willing to pay $100 for double straps. It's such a niche market that the cost of tooling, initial production runs, advertising, distribution, etc could never be recouped by another producer in the market even if they could reach a margin cost of $5 per strap.