the cost of transformers is certainly a big factor - I paid something like £120.00 for the transformers used in Jonathon's amp before VAT and postage.
What?
You didn't wind them with your bare knuckles?
I am deeply disappointed!
*lol*
But on a serious note, you pay as consumer 250$ for just a Marshall output transsexual (Mercury). So if you assume that the VHT transes are just half the cost, it would probably still be 100$ for the manufacturer, one of those, plus two OTs, plus tubes and high quality caps etc, plus the housing, plus margin, plus retail margin, plus VAT, Customs, Shipping ... man I can't complain for having received mine new for 699 I guess? Plus it sounds fricking great!
By the way, the VHT doesn't sag very much, at least not at the levels where I can operate it, which is perfect for the Axe FX, as I prefer to use the facilities in the modeler for these parameters. Means I can have a cranked, saggy Plexi or a super tight Ueberschall with the same rig, and it comes across with punch and transparency.
The Shiva power section might be of better quality (and it does have "something" that the VHT doesn't), but it's not That good a match for the Axe... now I am moving too much off thread here, sorry...