Do you have any sources I can read on that? I know reusing some of the hardware will have cost savings, but you are more than an order of magnitude cheaper than I have heard claimed. I would be very surprised that even if all of the hardware was 100% free that there would not be a few hundred thousand in labor costs alone for analysis and launch operations.
I do not believe that raw material procurement and manufacturing account for 99% of current launches or 97% or 90%. Even if it did, I believe there would be significant amount devoted to quality inspections and testing before you could trust a used rocket that not only fired, but impacted the ground to be used again.