Once you add up cost of wood, finishes/paint/inlay work, hardware (frets, tuning keys, bridge pieces, pickups, wiring, etc...), and labor, you're far over the $100 mark when it comes to higher quality guitars. You also have to put into account that you're paying for the name as well. It also makes a big difference whether it's made in the USA or in some other country. US labor costs are uber high, so a made in the USA guitar will naturally be more expensive.