I'm not sure why you think this is so surprising. Lots of things cost a fraction of what you pay for them and you don't give a second thought. Do you take this same attitude when you go to a restaurant and pay $5 at IHOP for three eggs on a piece of toast or get charged $4.50 for a latte at Starbuck's? Lots of businesses charge a significant markup over what an item costs. Not only do they have other costs than the actual physical cost of the product being offered, [but those] other costs go into providing it to you, [and] the vendor has to factor that into it. Businesses for the most part are in business to make profits and profits are made by marking up the cost of a product. Granted some of it is just opportunistic greed such as what hospitals charge astronomical amounts for procedures and only make those charges assuming that insurance will pick up the charge so they inflate the charge as high as they can get away with.