I would have to agree with Greed here, for the most part.
While I have no direct knowledge of how these "boutique" manufacturers price their products, here is a little insight at the pricing strategy of the company I work for. The company manufactures consumer electronics, dabbles in TVs, audio products and also game consoles...I guess those hints should be enough. Please note that these are ballpark figures. I could go into specifics, but I could get fired. Please don't ask me to get myself fired.
There are certain products, mostly in the $100-$300 where the mark-up is really high. Entry level products are easy and cheap to manufacture, and are popular. The markup is usually 60-70%. Not all of it goes to profits. Most go to retailers and marketing etc.
Mid-tier products is the bread and butter. Mark-ups top off probably around 25%, but most of the time is around 15-20%. The quality on these is far superior to the entry level products, as this is where we make our living. Sales of mid-tier products is where the volume is, so it makes sense for you to build it as good as you possibly can for the price. The better a product is built, the less you have to spend on support.
The top-shelf products, well, that's for show. Build the best top flight consumer products and charge a premium - let slip that 80-90% of the tech is in your mid-tier - drive up the sales of your bread and butter. The mark up for the premium stuff is higher than the mid-tier, but nowhere near 80%! Somewhere around 30% would sound about right. The profits for us and for our resellers though, is minimal. Less even than the mid-level stuff! There's the technology and the cost of manufacture. We don't manufacture a lot of these, and we do not expect to sell all of them even. But top of the line products are what drives the sales of the mid level products, by virtue of their desirability.
The proximity of the performance of the mid-tier to the top shelf drive sales of the products where we actually make a penny. It is no wonder that you can see lots of dac and amp manufacturers now releasing mid-level offerings.
Now, whether this is the same strategy the boutique audio companies adhere to, I don't know, but it makes sense that the respectable ones - most of them - will be following the same tac. Do I think there are those who are just price-gouging us - oh hell yes! But avoiding these companies is the responsibility of the consumer. Caveat emptor. We should not blanket all DAC makers as fraudsters - that undermines those that really do their best to give us quality products and advance the enjoyment of the hobby. Most of them are or were hobbyists like us at some point.
Whew! sorry that took so long.
I'd also like to add that after a year with the NAD M51 and the Bifrost - yeah the difference is really there. Noticeable not only with the TH900, but the HE500, the LCD2, and even my HD598. While it does matter (the DAC I mean), it does not take away from the enjoyment of using the TH900 with something like an E17 - a regular occurrence for me when walking around the house. It's easy to drive, easy to get along with - the TH900 I mean. But when I crave for more, I sit down and listen to the main setup, which is middling compared to most here but was a considerable investment for me. Never had buyers remorse, as every time the TH900 floors me when listening to a new track - I get this satisfaction that I've never had with any other consumer gadget I've ever owned.