Is it possible for a high end manufacturer to overprice their goods?

A few points on the OP;

There are 5.3 million millionaires and 770 billionaires living in the US. The market for ultra luxury goods is bigger than you think.

We are in the situation now that extremely high prices for products are a feature not a bug. In other words, exclusivity is a selling point. If you have $50 million in Microsoft stock spending 7 figures for a stereo is reasonable in your world. What else are you going to do with your money? Give it to the homeless?

To reinforce a point made above, volume and mass production is critical in the pricing of any complex product. I don't think anyone would argue that a Toyota Venza is magnitudes more costly to design and manufacture than a Rockport Orion yet the Venza sells for less than half the price. If Rockport could sell hundreds of thousands of Orions they would be a lot cheaper.

A $100k speaker or amp is not just an appliance, it is a work of art with a story behind it. It has the advantage of reproducing musical works of art as its purpose. People pay over $100k for paintings all the time. Why not buy a nice stereo?

I've been to a few audio shows and it's thrilling to hear some of these ultra expensive systems even though I will never own one. The sound they achieve gives me a target to shoot for and has allowed me to enjoy this hobby even more. I've been able to put together an affordable system that was state of the art 25 years ago and it holds up to the modern ultra expensive systems surprisingly well. I'm glad the ultra expensive stuff is out there and I hope that it brings joy to its owners.

@hilde45  Thanks for the well reasoned response.

Obviously, it is possible. Even the most expensive items are made of components that cost relatively little (thank goodness there is little place for precious metals and gemstones in hi-fi!) Does the manufacturer add enough design know-how, or design beauty to justify the exorbitant price? Looked at objectively, not often. Evidently it makes a difference as to whether the price is a big deal to you, or a trivial throwaway. But it makes no difference to the sound, does it?

I guess I'm saying we should only praise or recommend components on their sound, not on their appearance or their price. An unobjectionable principle. What a shame it so rarely seems to apply.

Like beauty, art, and a good movie, isn’t overpricing in the eye if the beholder? 

Thorstein Veblen coined the concepts of 'conspicuous consumption'.

Look him up. His theories read like a copy of Absolute Sound.