Colt charging more isn't price gouging, it's market forces. You never want to be in the business of making a product for cost plus. Rather, you want to make something where you can charge "what the market will bear". Highly commotitized products like milk, clothes, etc, are typically on the cost plus model, with a few "boutique" marketers selling on the "perceived value" model.
For many years there were no really viable alternatives to Colt for 1911's. When they came available, it was at a time when Colt was very much taking advantage of their customers by making good, but not great products, and charging a premium. Now they are forced to play on a much more level playing field, and finally; they're doing very well at it. In fact, I consider Colt to be the best value in a 1911 these days. No one, at any price, makes a better frame & slide, and the rest of the Colt's are very nice these days.
Now, if you want to think someone is "gouging", look at the makers of plastic pistols. Glock was originally going to be priced at under $200 but they hired a US marketing director who (rightfully) advised them that to do so would be commercial suicide as no one would ever take them seriously. This shows how much margin there is with polymer pistols. It is because the players are selling based on "perceived value" and what the market will bear.
But understand, in the next 10 years, that's going to become ever more difficult as companies all over the globe are looking at modern manufacturing and how easy it is to get into this market. We're going to see what we now call "off brands" begin to take on the big boys and win. Remember, Glock was an "off brand" that no one ever heard of, and they kicked everyone's ass. Not only CAN that happen again, but I can just about guarantee it will happen again.
Last edited by GunGeek; 07/16/19.
