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They should be able too if they are being honest about prices. There should never be a large mark up for Die-Cast just because it's heavier. Die-Cast metal is cheap, so I don't know why these companies put a premium on that. Yes, I prefer Die-Cast over plastic when applicable, but it doesn't mean it should extravagantly up the price.If made by InArt yeah $1K would probably be the bare minimum but I reckon Asmus would make it for less. Their Nazgul is $200 so 5 times that price seems excessive even if it is for a one off body and obviously much larger figure. If Asmus could find a way to keep it between $500 and $600 it will sell much better too.
When I was younger, I used to collect 1:24 scale race car collectibles. Those had a ton of Die-Cast and only cost around $50 or up to around $100 for premium details. Don't believe an Iron Man should run for more than $360 in my opinion. That's what they sold the recent Mark V for so don't see why others go for around $420-$450.
With Sauron needing to be a much bigger figure but no rooted head sculpt, there is no reason it can't be less than $500. If around $330 range for 12" sculpted, then a larger figure up it $100-120 and add a lot of Die-Cast add another $30-50. Maybe I'm completely wrong, but that's what I would think.