I just checked on cvs.com, a 2 pack of CVS branded "blue line" style pregnancy tests cost $13.99, a 2 pack of "clear blue" digital tests costs $17.79.
You can buy bulk strips for around 50 cents each, but many people would rather pay for the convenience of peeing on a stick than peeing in a cup and them dipping a test strip in it.
Many people are squeamish enough about their own urine to not want to hold a 2" long test strip in the stream, a 6" plastic device gives more clearance.
But in any case, test strips vary in how they work - some require a couple drops of urine in a specific spot on the strip, some say to dip in the urine cup until a dye mark appears. Is holding the test strip in the stream going to give the same result? I don't know.
I think pricing a 20c device for $12, to trick people that since it's digital/more expensive it is more accurate is the shenanigans.