I think the point of the article (which wasn't very clear; maybe Adam Davidson should stick to radio) was that even at a price most of us would consider expensive, this guy doesn't make much money. And the reason is that, as the modern economy makes everything else cheaper, things that depend upon people's labor get relatively more expensive.

So bespoke suits have gone from being a huge part of the suit industry to being a tiny part of it (not non-viable, just not very important). If bespoke tailors want to keep from becoming ever more expensive/niche, Davidson speculates, they will have to adopt at least some labor-saving techniques.

Note your solution--raising prices--is exactly what Davidson is annoyed about. As tailors raise prices, fewer and fewer people can buy bespoke suits. Which is bad. I'd like a custom-built suit, but I definitely won't bet getting one.

You've jumped into this assuming Davidson is writing about a business problem. But I think he's coming at it from a consumer point of view. He doesn't spend a lot of time trying to figure out if the bespoke tailor can raise prices because, well, higher prices reduce consumer surplus, so that doesn't solve the problem he's concerned with.