Jarod,
Two things. First, a gyroplane is more than just a failed attempt at being a "real helicopter." They have different appeals. Many who fly gyroplanes actually prefer them to helicopters for their simplicity, low maintenance costs, inherent safety and ease of operation.
Second, you may want to turn your question around and ask, "How can anybody sell a helicopter for less than some gyroplanes?" There have been several kitmakers who've gone out of business when they underestimated the costs of doing business, and discovered too late that they'd priced their products too low.
If you buy a kit from a company that doesn't survive, the low initial price may be little consolation later, when you can't get parts or support.
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