That’s kind of like asking why is popcorn so expensive at the movie theater. Or maybe more appropriately why is official MLB licensed apparel for your favorite baseball team more expensive than some knock-off unauthorized product.
No it doesn’t cost about $200 to make, because if it did it would probably cost about $300-400 to buy. This is a For-Profit company so there will be a markup to make a profit.
All said, while probably a little high, I’m not sure it is too far out of whack from other items I’ve had done. Our recent team banner was around $180 for a 3x10 banner, with no shipping involved. While significantly larger I would imagine the material cost difference between the two is miniscule compared to the labor costs involved.