Or in other words, the $3.57 in savings will allow the product to compete in a lower price segment and increase sales significantly.
It is the behavior of the buyers that drives costs down. People are extremely cost sensitive in the mid to low segments, shifting their purchase decisions from one product to another just because of less than $1 price difference. Some companies cannot survive at all without saving those $3.57.
Buyers do not exist in a vacuum, and consumer behavior is commonly manufactured. Consumer behavior has never been a substantial justification for optimizing for wasteful and environmentally business practices in pursuit of quarterly growth.
It is the behavior of the buyers that drives costs down. People are extremely cost sensitive in the mid to low segments, shifting their purchase decisions from one product to another just because of less than $1 price difference. Some companies cannot survive at all without saving those $3.57.