This might be something worth discussing.
Obviously, given all possible resources, one would conclude that selling the maximum number of products at a still profitable markup would be the ideal business model. But, what I think most aren’t considering is that Chris has very limited resources, at least compared to most companies that we are familiar with in our day to day lives.
I would guess he has a very strict budget that allows only so much capital (aka “risk”) to be placed toward any given run of yoyos, and that’s that. If so, this means that for Chris, the main goal is maximizing profitibality per yoyo, rather than maximizing profit outright. Maybe he could sell more Chiefs at $120…but can he afford to make more?
The higher price does a few things. It obviously maximizes profitability per yoyo, but it also means you can make fewer yoyos to end up with the same profit. With fewer yoyos, you can sell through stock faster, and when you sell through faster, you free up capital to move toward new projects faster. This ability to always be “on to the next” is great, and quite rare, for a company with very little ability to absorb financial risk. And finally, I think the “exclusivity” of the price is at least one factor that keeps demand high and allows this little process I’ve described continue. This would be a great way to do business if you don’t have the option of simply throwing cash at every problem.