I got the guitar on sale and so paid $8 for it. I think it is a very cute piece for $8. In my opinion, it is not worth regular price. It is plastic and looks very much like plastic, which to me says cheap.
Regardless of what one personally considers as cheap looking, plastic is cheaper to buy and manufacture. I'm not saying that the wood one is superior (I have never seen it), just that this one is not worth full price. $8 on the other hand seems just about right.
I think had I paid more than $8 for the guitar I would have returned it and ordered something different.