How do these people decide what their puppies are worth?

I'm not a breeder, but I do know reputable breeders, they figure out the cost based on how much it cost to title (all the trips to shows/events to) the dog, health clearances, and general cost of care of the puppies. Most irreputable breeders set their prices high not based on quality or cost of care but because they think it's a quick way to make a lot of money.