That is labor theory of value thinking what you are saying, if you think that as a macroeconomic phenomenon: "The cost of production does need to below retail price, otherwise you're losing money"

A whole industry can only be "unprofitable" if they produce mud pies*. If i am losing money, that means i made a bad speculation about future demand, and i oversupplied the market, AND my production costs are greater than the guy next to me. Not that the market does not appreciate my precious product and too evil to buy it from me for the "fair price". I either go bankrupt hence reducing the supply on the market totallity or make demand for my product.

How could the definition of value be different on the production side, and on the consumer side? Price (cost) is just the numerical expression in some unit of account of the value of anything that can act as an economic good.

*mud pies, as anything that clearly has diminishing demand, or below niche application, yet mass produced to nothingness. Like whats going on in the world right now, with 0% interest money founding production capacities producing shit that has no real market, unless it is bought with borrowed money as well --> mega super world debt crisis.