I used to work for a small company that sold a device for $400 which had a Bill of Materials cost of about $20. Nearest competitor sold theirs for around $900 a

I used to work for a small company that sold a device for $400 which had a Bill of Materials cost of about $20. Nearest competitor sold theirs for around $900 and looked slick. Ours was housed in (I kid you not) a Radio Shack blue plastic box. One day I got a call from a plant foreman needing a replacement and asking the price so he could get Procurement to order it. His reaction was "that little box is $400??!! Whatever, can you Overnight two of them, we're down right now." Value and price are two very different things!