Except a car costs $30,000 and a Kayak costs $300 with much lower running costs. Virgin are not trying to be the first to get into Space, they're trying to reduce the cost and make it more affordable.
Lower cost of access to space is SpaceX's big goal as well. So far they're doing much better at it. I wouldn't be surprised if SpaceX could meet Virgin's price for a suborbital trip, if they felt it was worth their while. But they have vastly larger fish to fry.