Some background, I'm not in this as a business but mainly to fund my other keyboard purchases. I had acquired a collection (over 30) of Model Ms back in the early 1990s. I had never felt the urge for IBM space savers until several months ago. Within the span of 2 months, I probably spent close to $2000 acquiring IBM space savers. I bought two of the Comptekw2K NIB SSKs for $345 and $355. I probably over paid but that was ok since I felt that they were worth it. I was probably partially responsible for the recent spike in SSK prices :-(. I am now into the Realforce series of keyboards and just bought one from EliteKeyboards 2 weeks ago. I also bought a used one from Ebay 3 days ago. I am thinking about getting the new model realforce that I heard mention that EliteKeyboards will be carrying soon. So, to fund these purchases and not get killed by the wife, I need to sell some of my Model Ms off (as I do not like the full size Model Ms as much as the smaller form factor ones).
In terms of pricing, yes, you can always find cheaper alternatives especially if you roll your own. However, even at the price that I am asking, the profit is minimal. Let's assume that we go with Laggy-gaga prices. You also have to factor in taxes and shipping when buying the parts so total parts costs will be close to $68. Now add in ebay and paypal fees (probably close to $9) and the production cost is around $77.
The target market is not the knowledgeable folks on Geekhack but mainly some average user who just wants an IBM Model M that is guaranteed to be in excellent condition and is not in the run-of-the-mill boring beige color. So far, I have sold approximately 17 of the keyboards and I only had one person who was not happy and that was becuase he misunderstood what the item was (I always try to make the auction as clear as possible) and in that case, I refunded him the price and original shipping. So for that auction, I had to eat the shipping cost (~$15) and the ebay listing fee ($1.25). This pretty much wipes out the profit on the next keyboard that I sell.