I'll try to explain.
Yes, the cost of testing and certification is very costly $35k for emissions testing. In addition, you must also conduct safety testing. This established clearance. Another $35k. Now, recently U.L. Standards Committee (yes I am a member) promulgated the UL 1390 for masonry fireplaces. So if you are testing an insert, add $10k. When you test a freestanding stove, the new UL standard for testing for alcove clearances, add $10k.
The above costs do NOT include the R & D costs with materials, labor, test filters, test equipment etc.
You may think sure, you encounter these costs once and then get to sell the stoves for a decade or longer. In the past that was true. However, in June of 2023, EPA issued a memorandum of understanding. The notice informed manufacturers that they would need to RETEST all ASTM 3053 cordwood tested units. By the way 78% of the cordwood stoves were tested to this "cordwood method". And, any M28R tested stove that was between 1.9-2.0 also needed retesting because "the variability in testing with solid fuel is such that 1.9 might have been luck". Don't comment on this because I will go off the rails. All this happened at the same time the tax credit was launched.
Now, you also have to keep in mind that retailers MUST not sell a certified heater after the expiration date of the certificate. This limits the number of "new" orders because dealers need to clear all the inventory....as do distributors. The tax credit has been a blessing for a few manufacturers because many consumers want qualifying units.
In short, continued volatility in regulations, test methods and compliance requirements is costly manufacturers hundreds of thousands of dollars.
As a reminder, I would very much like to have a sit down with the many professional contributors to these forum discussions. I have met several folks in person, but I really like the idea of a 2-day event. First day can be all about testing, compliance, certifications and the second ay the future of the aforementioned with new rule making coming in December of 2027. The reason I'd like to do this is because I would very much like to share valuable, accurate information prior to my retirement. And yes, I could arrange a couple of events, one in the east, one in the west and perhaps one in Canada. If this has any interest to you folks, let me know, I bet I can get a few other manufacturers to join the event. If nothing else, perhaps a virtual event, although it's hard for me to buy a round virtually!
BKVP