It's true in almost all commercial transactions. A price is a message communicating the value of the thing to potential buyers. Also, value is subjective. An

It's true in almost all commercial transactions. A price is a message communicating the value of the thing to potential buyers. Also, value is subjective. Anecdote: I used to work for a large software company. A long time ago they had a product which had a competitive feature set to the industry leaders in the space, but was a poor seller. It turns out that the price was so low (<10% of the market leader) that potential customers assumed that it was not a serious competitor. Raising the price significantly boosted sales. Years ago I owned a boat. Everything for boats is more expensive than equivalent non-marine items. At first I thought that was because designing things for marine environments required better materials and engineering. Then I realized that most people who own boats are at least moderately well-off, and that the price was what they were willing to pay, not what it cost to manufacture. This taught me that if I ever start a business, I will target rich people.