"Only" £1k? That's very good.
As others have said, price up a hotel stay for comparison, and that's without any care needs added in. Let alone specialist requirements such as dementia eta where you may need 2:1 or 3:1 care, round the clock, so that will be 3 shifts, so potentially 9 people to look after 1 resident. The maths starts to add up...
Then you have the lack of staff available, so you are using agency (which costs more again).
Profit at the moment after Covid is running about 5%, smaller homes are going bust regularly leaving the market for the larger homes to scoop up the beds. Councils do not have the money to pay 'proper' market rates so self payers subsidise council funded residents. Many new care homes are being built just for self funders - these are the nice shiny ones with hairdressers and cinemas on site. These don't want council funded residents as the money just isn't there from the Council to pay these rates - they want the naice middle class people who have an expensive house to sell who are able to afford the rates.
And the costs will only go up each year, as min wage goes up; this is a huge issue for councils in how they fund these residents, it's not possible to make any savings in the procurement of these beds, all you can do is mitigate any increases.