Working behind the scenes with retail pricing (not Walmart) I can say this is 100% how it works.
Also have been given a sheet listing all of my department’s products that were below a specific profit margin. Told that we had a sale coming in 2 weeks so make sure to raise prices on those before then so that I didn’t have a drop in my overall department sales. If the customers noticed and asked, we were to inform them the ‘sale’ was to offset the price hike that just happened because we were looking out for them.
At one point in my life I designed bathrooms and kitchens. I’ve sold thousands of faucets. Here’s a few points on regular retail faucets in the US.
Expensive faucets, you are paying for the design (Grohe), or for quality parts (Kohler).
Cheap faucets are made with cheap parts and are often old designs from major brands. These knock-offs are sold under store brand names usually (Aquasource/Lowes, Glacier Bay/Home Depot) and are made of cheap plastic. Avoid these unless you plan on replacing (rentals).
If you buy Grohe, don’t buy a US made model. Another company paid to use the name and ‘style’ in the US but the interior parts are cheap plastic bits and some things are modified to reduce the cost of manufacturing. Not worth the extra money they charge.
For most people I recommend sticking to the big names. Moen, Delta, Kohler, etc. They come with good warranties and parts are available everywhere.
You can still find really neat old faucets and repair them. Chicago, Price Pfister, Eljer had some good stuff back in the day and you can get new parts from Danco.