ANSWERS: 1
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There is usually more to the cost of the item they are selling. The material to make the part probably costs a couple of dollars. The packaging for the product costs a buck or two. The molding machines or other tools used for making the parts can often cost $20,000 - $100,000, or even more depending on what the product is. It costs money to put those commercials on TV and in magazines and newspapers. They also have to pay the person that designs the product, runs the machines that make the product, assembly the product, package the product, and ship the product. There are the people that have to get paid in the sales department, marketing department, finance department. There is a building(s) needed to make and store the parts, as well as the utilities needed to run those buildings and machines. You have to pay someone to answer the phones, empty the trash, pay the bills, and process the payments. In the end you still need to make a profit to make it all worth it. Still, they probably make a decent profit on the item, but at that point the sale price depends on how good the marketing department is and what the "cool" factor of the product is that will compel someone to buy it on a whim after seeing the commercial.
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