The price of the instrument reflects:
The cost of tone wood material, varnish, fitting, and strings.
Maker's commission, depending on the expertise of each maker.
Usually the higher end the model is, the longer it takes to finish the instrument, ranging from 1 month to 3 months. What you pay for is the combination of raw material, and maker's labor in crafting the instrument. That means even an one thousand dollar violin sounds as good as a three thousand violin elsewhere, we are still gonna sell it for cost of making the instrument.