[MaraUCSD]

Just curious why they are so expensive. I don't care whether or not you think they work, I just want to know what justifies the price. Is it materials, marketing, mark-up, or what?

Thanks.

 

[tiberian]

i think its the serious markup in the cable business, another reason to buy from larry because of his aggressive pricing

.

 

[markl]

Overhead costs of owning/operating a small business that serves a small niche market, it's not like they're selling hundreds of thousands of cables. Paying wages/salaries, renting equipment/space, advertising/marketing, web site maintenance, research and development, sales and travel expenses, etc. etc. All that stuff adds up when you are small business, you have fewer individual sales to spread your costs out over.

 

[Leporello]

Must be the huge cost of world class scientific research done at various cable companies. Pushing back the boundaries of the unknown cannot be cheap.

Just think about the vast amount of scientists doing audiophile cable research at institutions like MIT (not the cable company, mind you), CERN and NASA. We should be thankful to those guys!


Regards,


L.

 

[MaraUCSD]

So is it safe to say that the materials in an aftermarket cable are only a minimal part of the cost, and that when you buy one, you are paying for the development, and marketing of a highly specialized product?

Why then, do some manufactures charge different (but still high) prices for differenct cables? I find it hard to believe that a lot of extra research went into a $300 cable than a $500 cable. Some of that has to be mark-up/exclusivity factor (i.e. my cable costs more and is better, and you dont have one.)

 

[rodbac]

Quote:

Why then, do some manufactures charge different (but still high) prices for differenct cables? I find it hard to believe that a lot of extra research went into a $300 cable than a $500 cable. Some of that has to be mark-up/exclusivity factor (i.e. my cable costs more and is better, and you dont have one.)

There are a million different factors why they might charge more- they may have spent more developing it (although, it's an easy argument that no "development" is required for something as simple as a cable), they may indeed use mateirals that cost more, they may spend more marketing it, or they may simply be using their $500 cable to make the $300 cable look "affordable".

That's capitalism- you can set your price wherever you want, for whatever reasons you want. It'll either sell (you did something right) or it won't.

 

[soundboy]

In the case of Monster Cable....lawyers' fees and buying the right to name a ballpark after the company (Candlestick Park will not become Monster Park for me).

 

[beamrider]

Same reason as for anything else: Because people are willing to pay that price.

 

[Captain]

Here is the blah about the Nordost Valhalla power cable at about $2500 for a 2 meter length , pretty mind boggling

The cable consists of 7 solid extruded silver 16 AWG OFC conductors suspended in a Dual Micro Mono-Filament design. By using solid core extruded silver over OFC conductors, strand interaction, hot spots and carbonization, which can occur in stranded cables, are eliminated ensuring optimum performance. The VAHALLA power cable has a very high propagation speed. Unlike conventional power cables which have propagation speeds of less than 50% the speed of light, VALHALLA Reference power cord has a speed of 90 % the speed of light. This offers vast improvements in all facets of musical and visual performance. VALHALLA power cable also uses Nordost's proprietary 'Dual Micro Mono-Filament' technology which greatly enhances audio and video performance. This technology uses two FEP Mono-Filament threads which are wound around one another. These dual Mono-Filaments are then drawn around the conductor in a very precise helix pattern, this construction introduces more air space around the conductors and insulation contact with the conductors is reduced by more than 85%. Extruded FEP insulation is superior to all other materials in that it has very low signal loss and a high thermal efficiency meaning that it dissipates heat very quickly. This allows greater power to be transferred more efficiently. The use of FEP Micro Mono-Filament construction which has a very low dielectric constant and minimal insulation contact with the conductor means power is transferred extremely efficiently. Dual Micro Mono-Filament technology increases current flow, improves the transmission speed to over 90% the speed of light and dissipates heat. This design lowers the resistance of the cable keeping power loss extremely low.

By using very precise manufacturing techniques, whereby the seven mono-filament silver plated power conductors are wound in a special configuration, the impedance, capacitance, and other electrical specifications are maintained to very tight tolerances. Another benefit of this design is to eliminate external EMI/RF interference. The result is truly superb sound quality and stunning visuals.

This is cutting edge technology I bet the cost of development and research for this cable did not come cheap, then as said earlier theirs the marketing. Still a high price though.

 

[aerius]

Quote:

Originally Posted by beamrider Same reason as for anything else: Because people are willing to pay that price.

That and they have to cover their ad budgets. And of course, audiophile snob appeal, if they don't price them high enough the cables aren't "exclusive" enough, and the guys with the big bucks won't buy them.

 

[Jon L]

Quote:

Originally Posted by MaraUCSD Just curious why they are so expensive. I don't care whether or not you think they work, I just want to know what justifies the price. Is it materials, marketing, mark-up, or what? Thanks.

If you look at a typical "name brand" cable, say at $1000 retail, parts and labor cost involved probably range less than $100-200 at bulk rates.

Marketing, ads, overhead, etc probably add $100-200, and the manufacturer sells it to retailer at say $500-600, leaving profit of $200 per cable for manufacturer. Retailer then gets his profit, though many will "discount" off MSRP.

The one-man shows on Internet can cut out the retailer and much of marketing, inventory, so the same cable can be sold for $400 direct.

If you buy one of these unheard, you take your chances, so look for 30-day money back guarantee.

An experienced DIY'er could probably pull off a similar cable for $100, not counting his labor costs.

 

[ampgalore]

If my memory serves, one of the big time fancy cable companies recently got busted for labeling cables made in China as made in the U.S.

I think that company charges $500-$600, if not more for their cables. Guess how much their materials cost really is? A couple of cents per foot.

 

[ampgalore]

Tara labs, that was the company that got busted.

 

[sluggo]

Quote:

Originally Posted by Captain Here is the blah about the Nordost Valhalla power cable at about $2500 for a 2 meter length , pretty mind boggling The cable consists of 7 solid extruded silver 16 AWG OFC conductors suspended in a Dual Micro Mono-Filament design. By using solid core extruded silver over OFC conductors, strand interaction, hot spots ...

"Our cable consists of 41 individual strands of very high purity, monofilament cold-drawn copper. The copper is drawn through hardened steel dies at very high speed and under strictly controlled tension in order to achieve the special properties we require. Cold-drawing, in addition to setting the exact size required for optimum cable lay, relieves the internal mechanical stresses in the material and reduces the brittleness associated with the large grain boundaries present in the raw material. Many listeners report a dramatic reduction in "glare" and "haze" from this process.

Though the individual strands each measure less than 250 microns in diameter, they are capable of carrying nearly an amp of current. These 41 individual strands are then bundled in a mathematically derived shape and are then twisted in a tension and temperature controlled process to ensure proper bonding with the insulating layer. Any cable bundle showing deviation in shape is instantly noted by our automated inspection tools and the cable is rejected and destroyed.

Immediately after bundling, the cable is hermetically sealed in amorphous vinyl which ..."

I could go on, but you probably recognize a description of 14 gauge zip cord when you see it. If you put enough prose around it, you can make even the most mundane product appear to be far more than it is. Read any high-end catalog in any market and you'll see the same thing. Question everything you read.

sluggo

 

[ampgalore]

Quote:

Originally Posted by Jon L If you look at a typical "name brand" cable, say at $1000 retail, parts and labor cost involved probably range less than $100-200 at bulk rates.

Almost all these companies buy bulk cables from the cheapest suppliers they can find, and 99% of the time those suppliers are OEM manufacturers in China.

Couple of cents per foot for the OEM cables.

When they charge $500 per cable, those companies operating at over 1,000% profit margins. Then hire some unemployed English majors to write up pseudo-scientific-philosophical-religious mumbo jumbo about the orgasmic sound of these cables. You have a business here that is making you more money than robbing the bank. No wonder this cable business is flourishing.