Totally right. I was sourcing some clothing for a football team a few years back and was dealing directly with Nike. Shirts that were retailing for $30 were offered to me for under $5 from their warehouse and just goes to show the mark up which is totally unnecessary. Sell the shirts at $10 and people will buy more of them and there is more profit in the volume.
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There is a brand called Kalenji I think and one day I was at some sort of discount sports store when I encountered their shirts. While I was there I was at that time wearing a $60 Adidas "dry-fit" shirt and found some Kalenji's that honestly, except for the logo were exactly the same thing. These shirts were around $3 each and if you looked closely at them you would think they were made by the same machine and with the same materials. It really wouldn't surprise me if they in fact were made at the same factory and the only difference is the finishing station where the logo and tag is sewed onto them.