Are high-end manufacterers pricing themselves

Out of the market.It seems like the gear keeps going up in price and there are less and less people to buy it. My local dealer is willing to cut a 20 to 50% discount on demos just to move gear. It seems like he is not the only one.
They have been doing it for years..How about Virtual Dynamics selling new cable for 80% off..And they are still making a profit! What does that tell you about the cost of there materials????????????
Cost of materials aside, what does that tell you about the mark-up?
It's funny you mention Virtual Dynamics. I called over there a couple of years ago and talked to the owner. He sounded like a car salesman. He had a hell of a spiel. He wanted to sell me some power cords he was discontinuing. He told me he would give me 70% off as long as I promised not to tell anyone. I asked him how he makes money selling at 70% off. He told me he was willing to take the loss as long as I was happy with the power cords. He even said he would give me a 30 day trial.
not to mention the story that popped up where someone dissected one of the vd cables and found it to be no more than cheap belkin wire braided...caveat emptor.