A lot depends on the quantity sold. If a product sells in volumes, the prices can be dropped and the profit is made up in the volume of sales.
Another factor is who are you selling to? Who are your customers? Are you selling to the elite crowd of broadmoor people, medical doctors and lawyers or are you selling to blue collar workers or are the majority of your sales to younger crowds who get their salary from flipping burgers. I'd say for most it's probally a mixed bag but this all comes into play when one is setting their prices.
I can understand how ALL growers want to get top dollar for thier goods but it will never be that way. As a business owner/operator one has many choices to make in regards to pricing, products, and who they will cater to (rich, poor, middle class). They also have to deal with competition and that will effect their prices... if they even choose to "compete."
I am a pipe smoker who enjoys top quality pipe tobacco from all over the world. I refuse to smoke shit blended tobacco like Carter Hall or sweet aromatics like Captain Black. (common drgstore crap) REAL pipe tobacco is quite similar to good Cuban cigars as some of the finest tobacco is made for pipes and cigars. I spend about 12 dollars for 50 grams of top notch pipe tobacco. I spend 200-300 dollars for a pipe. Thats my confort zone.
They are pipecarvers out there who sell their pipes for 1500-2000 dollars. I will never buy a pipe for that amount but there is a niche' for that market but a small one.
Pipe tobacco ages like fine wine. If sealed properly, overtime, tobacco ferments and produces sugar crystals which wonderfully enrichens the tobacco. It is not uncommon for someone to sell a vintage tobacco (that is still sealed in the tin and has aged 3-15 years) for 200-300 dollars. Just recently a 50 gram tin of pipe tobacco sold on ebay for 600 dollars.
I do not think the majority of people want the cheapest shittiest weed. Hell, I enjoy cavier very much (had it 3 times) but I will never EVER buy it. I think most of us have a programmed "spend level" and we do the best to find something we can afford and still enjoy. It doesn't mean people are ignorant to whats out there, most know whats good and bad and spend what they can afford. Economics 101, man.
I find this a bit funny as there was always ongoing argumentive discussions about the same thing in regards to pipe tobaccos on a Pipe Smoking Forum. The upper classers always had to justify (and brag) about their expensive pipes and tobaccos while they scoffed at the old poor guy puffing his corncob pipe and smoking cheap drugstore tobacco. The poor old guy would retaliate with "you're wasting your money on that shit!." Then there were the guys somewhere in the middle (like me) who found it odd that everyone had to argue about what kind of pipe they smoke, how they smoke it, what brand of tobacco ,etc etc. It never fuckin ended and noone became the wiser.
Some of us pipe smokers came up with a saying:
"Smoke what ya like and like what ya smoke."