Let’s say you are a chinese seller on Amazon and your differentiating factor is that you undercut your competitors. In this case, you should focus on producing that t-shirt for a low cost. And that should be your absolute priority.

In this other example, where you are now selling a 400$ t-shirt, the price to manufacture the t-shirt almost doesn’t matter at all. Instead, you should excel at marketing and desirability.

– Mike Beckham (SimpleModern), (around 10mins) E018: How To Price Your Products. A Deep Dive Special.