I don't know how much cheaper this could get, but in case anyone is looking to buy an Intel processor, Micro Center always has great deals (if you live close to one). They have the i7 3770k for $230 right now: http://www.microcenter.com/product/388575/Core_i7_3770K_35GHz_LGA_1155_Processor
The i5 3570k is even cheaper. They also have a deal to get a discounted mobo with it.
Hey Haris - you're exactly right, these products are way too big for a group buy this size. We would need 20,000 people+. We'll reach it one day as the Massdrop platform grows, but right now its a bit outside of our reach.