Well, my hobbies besides LEGO include console gaming, diecast cars collecting and scale railroads. I probably have too many hobbies actually. I bought the ultimate digital starter set from Piko for 210 EUR plus shipping 32 EUR from Germany. Consisting of two digital locomotives, freight wagons, passenger coaches, track and digital
controller with "remote control" style controller. The large oval with multiple turnouts. That's what I call it "Value for money".
Compare this premium set (for the small population of train-lovers) with the recently released "Porsche" from TLG Technic line with no PF, Motors,etc. Just an overpriced beautiful box with a plastic parts and a manual with errors.(check the technic section of eurobricks community).
So TLG produces toys (for kids and AFOL's) from a plastic, not a Rolex's. Setting a price that is too high will at best limit your business growth. There is some opportunity to reduce the price, which is inherent in the product. And the Chinese companies have taken advantage of this opportunity. That's my IMHO.