Al, in today's world,I can't disagree with your lesson learned conclusion.
But still....
I started getting serious about pipes around 1979. At that time, Royal Cigar in downtown Atlanta had annual Charatan "trunk shows" which really were trunk shows. Gene Thompson, the Lane representative, would drive over from Tucker GA (an Atlanta suburb that was Lanes headquarters) and unload a couple of big shipping boxes from the trunk of his car containing 5 or 6 dozen Charatan's. A few weeks later he would come back and pick up the unsold pipes.
I was in the shop one Saturday when he came back for the pipes. The owner, the late Bill Kiely, already had boxed up the pipes to go back. Except...
As they were doing the bookwork, Mr Kiely opened a drawer and pulled out two Charatan boxes. He said " Gene, you probably ought to look at these before you send them out again." He nodded and nothing else was said. The pipes were loaded in the trunk of Thompson's car and they went to lunch together.
The next time I saw Mr Kiely I asked him about those Charatan's. He just said, "To me, they shouldn't have ever left the factory, so I never put them out". I still don't know what the problems were.
As I said above, markups are still around keystone. (100%). I guess what has changed is that back then shop owners earned their profit. And knew how to evaluate a pipe that carried a premium price tag.