Why do PRS guitars cost so much?

Wonder why PRS and other premium guitar brands are so expensive?  Here's a clue. PRS guitars, according to this seller, just cut up any guitars that aren't good enough.  This one has been painted so the wood must have been ok. maybe the paint job went wrong or it got damaged.  I can see a bit of paint bleed on the lower horn. I wonder how many end up like this?  Even if it's a small amount it's still quite a waste considering the amount of wood already wasted and time invested in the build. Of course this waste is incurred in the cost of a guitar that makes it to the buyer.
 Of course if your a bit of a numpty you can always pay £200 for an offcut! eh? 
Don't get me wrong. PRS build beautiful guitars but, is it just me that thinks the birds should be flying in the other direction?
http://www.ebay.co.uk/itm/Prs-Hollowbody-Hb-Offcut-Rare-/301193662226#ht_116wt_1362

20 Thousand Views and 100th Post

I guess That's a bit of a milestone. Thanks for reading.
At the moment I am (amongst other things) working on these two Steel string solid body ukes for a customer. one for him. I have shunned my usual approach of making an instrument entirely by hand and eye and have actually made templates for these so I can easily make more in the future.
Steel String Tenor Ukulele x 2

Also in the pipeline is a Partscaster with a Floyd rose! a 3 string cigar box fretless guitar. and the 1st production model of the Novus. Watch this space :-)

Rustikaster. Rustic pine bodied guitar with gold foil pickup

 

Body made from reclaimed Pine

Neck is a DR parts All maple

Generic (Fairly low output to match the neck pickup Tele bridge pickup.

Gold foil pickup from a 60's Japanese Kimberley.

Finish is a red and yellow stain with Danish oil top coat.

This is great for that dirty gritty Blues sound.