Maybe some of needed to listen to our Economics and Marketing professors in college.
Price and cost are two different concepts.
In many businesses, market share is king. Glock sells guns at or near cost to LEOs because they have captured the market with that technique. The higher percentage of officers carrying Glocks, the greater their civilian market sales.
LE sales probably account for about 5 percent of the total gun sales market in the US. They can easily afford to abosrb that loss of profit.
And the tooling, leasing, employee salaries, benefits, taxes, permits, ATF administrative fees, import fees, tariffs, materials, energy do cost a lot to put out most any products.
But if you look at several HSs/XDs carefully, you're getting a fit and finish of a $300 gun much like the Kel Tecs.
But once again, the HS2000 is a nice $300 gun. The XD is worth no more. Period. Guess SA does have an marketing professionals who understand concepts like entry pricing and product positioning.
It's like trying to sell a $18 Volkswagen Jetta for $50K when you can get a BMV, Porshe, or Audi for the same amount.