You can say it solves some more expensive problem but that is no justification for price. A band-aid may save your wound from becoming gangrene but that doesn't make it worth more than 10 cents.
Wow, I think your metaphor proves the opposite of your intent.
Only if you add in unnecessary expenses.
A band-aid and good medical practice that prevents gangrene is nearly priceless. Just ask someone who is suffering from the condition what they would have been willing to pay to avoid it. I venture to guess that they'd be willing to pay a pretty penny.
Which is the wrong way to look at it. If you treat it right in the first place, you don't need ANY medical practice markup. Remember, we're talking band-aid, not limb severed off. In the GM vehicles, we're talking early progressive flaw, not engine locked up.
This really comes down to the perception of value of a product. Is a product only worth the cost to produce plus some arbitrary percentage of profit? Or is the value of a product equal to the value of the problem it solves?
Not necessarily. There are literally thousands of examples. Food keeps you from dying of starvation but is it priceless? No because there is competition. Similarly, once there is a Chinese clone, there is competition. A simple broom, is priceless in keeping your floor swept, but is still only worth the labor and materials to make it. Clothing... don't leave home without it, lol. Not worth more than labor plus materials.
The market consistently demonstrates that it is the latter.
No, the market almost never (only early adopter *tax*) demonstrates this. It is a one to a million ratio for early market penetration and even that is not a rule, just an opportunity.
So if customers with GM products view the AFM system as a problem that must be solved, then the 3rd party can sell at the price the market demands.
That's called throwing good money after bad. The solution is sell the vehicle. The band-aid is wait for the cheap clone. The paying a specialist a premium is what the early to market product is.
I can understand, making a bad vehicle choice then making a bad band-aid choice. It's consistent.