I manufacture things out of steel. Steel costs 50 cents a pound for sheet and $2 a pound for welding wire. The freight to ship it to my distributors is another 50 cents a pound, and the advertising and marketing cost is about $2 a pound.

So ultimately I agree with Page. The cost of manufacturing anything goes on along a 1/x curve over time, and approaches the raw material cost. Its the other costs that don't do that, like engineering talent, marketing spends, warehousing, shipping.