Question about packaging: does it make sense for your packaging to cost more than the product itself?

We’re talking about the fashion industry here.

We have a metal bracelet that only costs $1.75 to produce, but the packaging is a really nice leather pouch that costs $4.5. Selling price has not been decided yet, but probably $40+

What are your thoughts?

The only product on the market I can think of where the packaging is more expensive than the product is bottled water.

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