"Do you think it's right for a vendor to mark up a machine?"
Wow, welcome to the age of consumerism. Isn't asking this question like asking if its okay that a business attempt to try to make a profit? Really? The vendor isn't running a charity operation, and your not covering or managing their losses when things don't go well, or complaining when a pin is too cheap, right? So I don't think it's fair to try to manage their profits either, you have choices if you don't like the prices, use them!
In the end, its' the "market" that will decide the price of the pin.
Just my 2 cents