Oh, the prices we pay

Yesterday, I met the flooring subcontractor. According to my GC, he gave us a pretty amazing price for flooring. The subcontractor said that he usually charges double for our city. I asked him why. He said it was because the homes are million-dollar homes so you can charge more - what cost $2 in another city will cost $4 in our city. This is why we get such high quotes for construction!!! Our GC thought that was so wrong because it's the same material and same labor. *sigh*