A rug can cost as little as a few pounds, from a rag rug bought at a craft fair to the finest hand knotted rug in the world worth hundreds of thousands of pounds e.g. the Arbil Carpet forming the centre piece at the V&A in the new Islamic Art Gallery.
Traditionally the style of a rug indicated its source. World wide there are 100’s of rug producing regions each of which have their own characteristics & individual production techniques. It is quite common for a novice rug buyer to confuse the name of a rug production region with a specific quality or standard. Here is a map of the traditional rug producing regions which clearly shows why names can get confused.
These days a combination of production technique, materials & design determine the overall price of a rug. As rug manufacturing has become a commercial industry regional names have very little meaning unless you are buying an antique or a vintage piece. Designer rugs by famous British designers can fetch prices that have little relation to the actual commodity cost of producing the item.