Call kettles black much?
I've seen these knives being manufactured, and maybe you are a genius production line engineer, but looking at the premium materials (ZDP, try getting a quantity of that), the steps involved in making components, getting parts DLC coated (yes actual DLC, not Skeltonized PVD), parts anodized, and all the hand work, it is difficult to imagine there would be much, if any profit at $250.00 without cutting a hell of a lot of corners (which I know they didn't). I would assume (and hope) that they are making a profit at $400 and I certainly would not begrudge them that. Certainly better than selling them at a loss or breaking even when selling to dealers.
Since you may possibly be an expert on the subject (you seem to be representing yourself that way), perhaps you could give us a breakdown of costs of materials, processes and labor so that we will have a clearer picture of how Kai is grossly inflating the price?