How are wine prices calculated?

Naked Wines recently invaded both Australia and California. Here, chief winemaker Matt Parish, who has worked for a wide range of companies small and, particularly, large, spills the beans about how wines are priced. Of course there is more than a hint of hype about his employers in what he writes below, but I think the figures are interesting enough to be worth publishing despite this.

I remember reading your article L'Extravante indeed with intrigue, in fact I took a photo of your quote 'The joke is that wine is not very expensive to make' and sent it straight to...