Kinfolk cracks me up, I gotta say.
My thought is that the cost above the cost of materials, manufacturing and distribution is made up of a social fiction, in which lots of things come into play, and that participating in that fiction is the whole appeal of luxury goods. I mean civilization is a social fiction too, right? So luxury to some means the logo doesn't show, and to others means the logo must show.
For me uniqueness is something I would pay more for. Ordinary looking isn't, unless something about the source, materials or manufacture made the cost of creation exceptional. (hand loomed linen? Custom made shoes?)
Cost is all relative I'm thinking. Rather than a dollar amount, I'm wondering if I should ask myself if I'd spend a months work on something, or a weeks, or a days. How much life energy is it worth? How much life energy did it cost the people who made it?
I'd actually pay a lot of money right now for a really comfortable light extremely durable zip up hoodie with a chest pocket and channel for my ipod cord because I would wear that sucker every day. True confession I sewed a pocket out of part of a wool sock onto my old hoodie so it would be in the exactly right place where the cord wouldn't catch while I was working.