I think Slik Stik's stainless steel handles are overpriced for what value they provide
I don't agree or disagree with the above statement. But I'd like to point out some things that might make people think a little...
The sad fact is that we live in a free market economy. If Slik Stik is the only company that makes stainless handles and people want them, since they control the supply, they can set the price at anything they want. However, there are two extremes...
1) really high price, nobody will buy them, no profit.
2) really low price, everybody buys them but the profit margin is too low to make any money.
Obviously, the optimal price lies somewhere between these two extremes.
Consider two scenarios (completely made up numbers)...
1) $10 part times 100 customers = $1000
2) $100 part times 10 customers = $1000
Which one is better from a business perspective?
Common sense would be that more customers is better. However for most companies, scenario #2 is actually preferred. Why? There is cost overhead associated with selling a product: advertising, warehousing stock, taking orders, shipping orders, fielding support calls, handling returns, etc... So the more money you can extract from each customer, the less overhead and the more net profit.
The trick for any company is to find that price point for a product that is just shy of "too expensive". They want the maximum number of dollars with the minimum number of customers.
Of course, most (if not all) of this theory goes out the window when you are talking about a commodity item. The above only applies when the product in question is unique and only available from a limited number of sources (preferrably just one).