Supply-Demand pricing is probably one of the most well studies aspects of modern economics. There is a range of prices between the underlying costs+overhead to

Supply-Demand pricing is probably one of the most well studies aspects of modern economics. There is a range of prices between the underlying costs+overhead to the price point where demand drops off. In that range, several factors influence where a company sets its price. In a case where a company produces a unique product on the market, then it will price in the higher end of the range where demand drops off. On the other hand if multiple companies produce the identical product (a commodity market), then the competition all try to undercut the prices of one another and prices are more determined by the underlying input costs (such as labor and raw materials). Few companies product something COMPLETELY unique and irreplaceable for long until other companies copy them, but most try to differentiate themselves somehow to enable higher pricing without competition. They obviously also try to reduce overhead and negotiate lower input prices to gain a pricing advantage and capture more market share. Many companies exist in mature markets where commodity pricing dominates. In such cases, and in OPs case, the LACK of rising labor costs allow prices to remain low. Only on social media do people think that companies price things from a purely ethical/greed based model. Efficient pricing is just one aspect of running a successful company.