[SteveC]

Frankly, what a naïve and silly post. This self same business model applies to most of the goods you buy. You think Rolex Watches are any different? Go back to the early days of a Submariner and look what it cost back at launch....do the inflation maths and what do you find? That today's Submariner is roughly 6X the price it used be vs its inflation adjusted price. Is it improved since yesteryear? Slightly larger case, improved clasp and a ceramic bezel.

The business model in the OP's post misses the most costly element for any manufacturer, namely advertising and distribution i.e the costs associated with persuading us to buy their product. Retailers these days work on 50% profit margins i.e 100% mark-ups. A page of advertising in a national journal costs tens of thousands of $$,$$$, trade shows multiple tens of thousands $$,$$$, sponsorship of events, wholesaler discounts, sales people to obtain and process orders, packing and shipping costs, public liability insurance, etc. Then there's cost for developing an advert, creating a website and content, SEO (search engine optimization) etc, etc.

Then work out the start to finish fully inclusive tax bill on any product and you would be astounded at how much of your money ends up with the government by way of duties, income tax, company tax, dividend tax, value-added tax, sales tax etc paid on raw materials, salaries of all associated employees, retail margins, trade show and advertising margins, etc. etc. etc.