So many great points and takeaways, but I think the following is key:

"What matters is not so much the distance between the cost to produce something and the price to sell it. Focus on, the difference between the price and the perceived value to the end user. The perceived value has to be greater than the price! Don't build a business around cost + margin, build businesses around perceived value."

Focus on the incentive to buy, not the incentive to sell for your business.