But I'm unable to explain why an item costing $0.05 could be sold for $5!
Because it's German. As a guy in the Solar mfg business that is chock full of German equipment, I can attest to the fact that Germans overprice everything...EVERYTHING.
There's more to HK o-rings than just the "O".
If it's typical German fashion, they skip the stock parts bin stuff and make their own components. From a manufacturing point of view, this is just dumb for an o-ring, but might be absolutely necessary for the application like this. O-rings have spec's too, and buying them from HK means you just haven't found their supplier yet. Because dollars to donuts, HK doesn't make said o-ring, but they did set the spec.
Not to bash on HK, but in my experience, most German manufacturers like to ignore their customers as long as possible. Trust me, I am the equipment and process owner of 10 pieces of German solar manufacturing equipment and my experience is that the further east you go in Germany, the better the customer service becomes. Actually, a small company out of Dresden provides me the best support hands down. That's only miles from the Eastern border. All my misgivings aside, the Germans do make some good products, but they come at Euro and cross-Atlantic shipping premiums. Just think of it this way, you're not feeding the Chinese.
Sorry, skewed off topic a bit. My engineering colleagues with BMWs drank the Kool-Aid. All seem to have a common door window problem, but still love their cars despite this simple problem that cost $500 or so to repair. Tuning a car for a specific battery is over-engineering. The electronics should auto-tune, but that doesn't keep techs in jobs now does it. Consider Germany is a socialisitic country and shut down American operations here locally to return jobs to Germany. A concept I can agree with, but not a capitalistic decision as we are accustomed too, our jobs went to China instead for the most part in regards to manufacturing. Look up Siltronic if you like more details.