I argue that "ripping off" is based on the value that a consumer receives relative to the price of the product or service.

Imagine you say: "I will tell you a joke, if you laugh then you must pay me 100 dollars"

If I give you 100 dollars, and you just run off with it, I got ripped off.

If I give you 100 dollars, and you tell me a really funny joke, then I was not ripped off.

Your problem seems to be that telling jokes is virtually free, and the profit margin might be 94%.

Yep I get it but it seems like an incredibly naive and almost arrogant message to relay...

"Hey customers, buy our product for $16 even though it actually cost $1 to make"

The audience for the message is investors, not customers.

It was posted on a customer facing website...

If spoon costs $0.10 to make, and you cannot make a solid business selling it for $0.30, while at $2.00 per spoon the market is willing and you get to create jobs, what shall you do?

Or they have high fixed costs.

That would create a high 'contribution margin.' A profit margin usually includes fixed costs. :)