BIG profit margins. BIG ideas.
When you're able to sell a t-shirt that costs 80 cents to make for $150, that says something. When you can sell a swivel chair for $1000 and it only cost you $200 to make, that's telling you something.
These products that have big profit margins are selling big ideas.
They're selling movements on top of just the item.
Because if you really just wanted a t-shirt, Walmart would suffice. And if a chair was your only aim, you can find ones for a lot cheaper than $1000.
So when you're trying to figure out what your product should cost, it's more than just a question of what is this physical construct worth in the most tangible terms possible (labor + cost, etc.).
It becomes a question of idea. Purpose. That thing called brand and thought leadership.
I'm not saying it's easy to build, but standing for the right thing over an extended period of time can lead to a major shift in profit margins.