Hi Arthur, thanks for sharing your thoughts!
I see where you’re coming from. First, I don’t claim to have concrete evidence their costs were $3. I’m just suggesting that this might’ve been the case based on other business models I’ve seen, so please direct any anger you have towards me rather than them.
Second, this model is nothing new and is used by every major retailer/brand. When you buy a fancy watch, you are paying several thousand dollars for a product that costs the company maybe a couple hundred at most. Why? Because of the brand.
The only difference is that the internet has made the numbers much more transparent, so it feels more annoying when internet businesses do it. But the reality is that you are paying a branding markup for almost every product you buy in stores as well.
The good news is that you can always cut this out by purchasing directly from the manufacturer themselves.