That's a good price for a resale wine, but a bit spendy for a distiller.
The way we look at it, wine is over 85% water, and we have to remove that water.
At an optimistic 14% abv, and assuming 75% recovery (loss to usual spillage, heads & tails), that translates to between ~$4.75 and ~$6.50 per 750ml bottle at 40% abv. At 12% it goes up over $7 a bottle. Add in cost of glass, labels, closures, labor and utilities and that's an expensive product.