Why does a product which costs $50k cost more than "Lord of the Rings"? I think"bearded one" answered this fully but let me give you some numbers for the adult industry.
When all is said and done, a release like Buddy Wood's DVD costs about $17k to get out in the stores. That includes model fees, design and production of the DVD/cover but not advertising.
If a title sells through our distributor they take 30% - and often the wholesale price is $12-$15 depending on how many the retailer takes. So from that sell we only get $8-$10 a piece. This is why we try and push through
http://www.shemale-video-direct.com at $24.99 as it's our own company and direct sale and through
http://www.groobyvod.com.
We're not selling $100,000's of an item, it takes up to a year for a title to break even. There simply isn't enough DVD buyers of an already flooded adult market out there. A couple of years ago I was getting taken around Evil Angel's office and the manager there Jeff give me some numbers of Joey Silvera's releases ... over a lifetime of a Silvera shemale DVD they only sell numbers in the low tens of thousands - worldwide. I had no idea it would be so low and expected in to the 100,000's range.
So charging $24.99 is a matter of economics. If we sold 100,000 of the title in the first year of release, we could charge $3 a release and happily make a profit.
seanchai