I always thought that you were paying someone else to make mistakes!
You know, not just paying for the flute, but paying for all the destroyed pieces of wood before that.
This is part in jest, but part in truth, let me explain, If I could make a flute in 20 tries for less than the price of 20 wood blanks, I would try and the price I would be willing to pay for a flute of such quality. Now the longer a person has been making flutes (hopefully) he makes fewer major mistakes and starts making smaller and smaller ones. All the sudden it would take me at least 40 wood blanks to get to the same point so I pay more. After a certain pint I could not make something better for cheaper without sponsorship and so I start selling my first “Okay” flutes in hopes that I can make one that I like and, low and behold, I have become a flute maker.
The other thing is that the more you work with a material the better you understand it. Mistakes in metal are different than mistakes in wood. Wood has grain, most metals will not, this will effect how you treat things.
Maybe someone can say it more eloquently than I can, but this is how I see the cost. It has nothing to do with the tools that can be used to make thousands of flutes. A computer hard drive has many parts that need to be machined to a high level of precision (think nanometers or less) and the tooling needed is very expensive, but hard drives are cheap because of the number of times that the equipment is used to make hard drives. Continuing on this train of thought, a mass produced Boehm would cost much more to tool up for than any of the simple system flutes. The problem is that when craftsmanship is involved, you set up a problem of supply and demand. Because there is only one person making a certain name of flutes, you just can’t crank out thousands of flutes and drive the costs per flute down.
It is kind of funny in a way because when Concertinas were popular they were mass produced for affordable prices, much the iPod of the day, but now all you could hope to do is find a used one and have it rebuilt. (do not play one just what I heard)
So if you want flute prices to go down, teach someone the Irish flute and create more demand. Someday you too could be playing Irish music on a Yamaha simple system.
Or play the piccolo (they are usually cheaper)
"Be not deceived by the sweet words of proverbial philosophy. Sugar of lead is a poison."