One of the biggest misconceptions is that there is or needs to be some
magical relationship between cost (what it takes to develop, make and
sell) a product and price (what you can get for it in the market).
Pricing a product is very difficult and involves assessing market demand
for the product, competition and other factors. The only necessary
relationship between price and cost is that price must be > cost to make
money.

To be successful, work the process from the back end. Determine what you
can sell a product for and then see if you can actually make it for that
amount plus profit.

John