I chose number two backed by my opinion that a Rod manufacturer can and should charge you a retail premium when you first buy the rod to of course make a buck, but if/when it breaks, the expeditors fee should be based on their manufacturers cost to replace the broken component plus a smaller profit margin. They shouldn't be making tons of money off warranty repairs or exchanges, but keeping customers happy at this point by helping them maintain their inventory of rods by replacing broken parts, etc at their cost to make the completed rod tip or butt section plus a smaller profit margin compared to the margins associated to retails sales of new rods.
You can't expect a manufacturer to make two types of rods. Rod's they make money on, and Rod's they make no money on. There has to be some profit built into in every rod coming off the line.