I don't really like these threads because they are always misguided and I normally stay out of them, but I actually got emailed by 2 people on this and asked some questions.
I can't speak for other companies out there, but here at APureSound we design the wire and place huge custom orders for the wire (50-100k ft). If you look around you will see that ordering custom made wire requires a lot of investment. Also I can say prototyping is not cheap. I can't speak for others, but we spend a lot of time testing everything before it ever gets released. We even send prototype cables to long time customers to see what they think and continue to work off of that.
Our wire is very expensive due to materials used, but we are able to keep costs down by not having any middle men and get the wire custom ordered directly from a wire manufacturer.
I don't see how no one ever takes into consideration the cost of equipment that needs to be purchased: solder/de-solder station, oscilloscope, and high end Multimeter just to name a few. Also just like every other business we have to pay for taxes, electricity, web hosting, web development, ect.
Stop for a second and think how much profit there is for example on the Cardas HD connectors which MSRP at $16. How much do you think it costs for Cardas to make them? Keep in mind they are a mold and machine made. How much profit do you think Sennheiser is making with the HD800 headphones?
I will not say anymore, but I just wanted to give you guys some more to think about on this subject.
If anyone has any questions feel free to PM me or email me directly
alex@apuresound.com
Thanks,
Alex
http://apuresound.com