The Cost of Cables

I think the cable prices are inflated more than any other area of audio. They don't have the nickname 'wire bandits' for nothing.
Having said that though, ultimately, the fault lies with the consumer. If I only had a cable for every manufacturer that has told me that the public demanded a new higher priced cable, so they make it. They are simply filling a need. Some people need to spend a lot on cables, so there has to be someone there to fill this niche, don't you think?
I had one manufacturer tell me recently that he had to make more expensive cables because he had customers telling him that while his product sounded excellent, it's cost was too low compared to the customers reference cables to consider purchasing them. So obviously the manufacturer created more expensive cables.

Supply and demand.

Don't blame the manufacturers, they are simply filling the customers demands.

John

Regardless of the price of the cables, it is neither financially or psychologically the main purchase,

Cwlondon

Actually, look around this site some more, you may be surprised. Some are using cables as expensive, if not more expensive, than their equipment.

Is it determed by most then that cables simply are marked up much more than other audio componants or is there actually something to the cost?

Brian
Brianmgrarcom

Yes, there is more mark up in cables than other gear. Again though, blame the consumers, not the manufacturers. If you found folks dying to give you more money, wouldn't you take it?

John

04-06-07: Brianmgrarcom

The question is not whether they make a difference or not but rather why do they cost as they do. What makes the more expensive ones, more expensive?

Sigh......because people WANT them to be more expensive. Simple, basic economics of supply and demand. Human psychology 101: 'who has the biggest johnson?'.
If you're looking for something deeper than that, you will be sadly mistaken.

Brian, if you were a cable manufacturer, and your potential customers told you that they wanted a pair of $10,000 speaker cables, would you make them $10,000 speaker cables, or tell them they are nuts and offer them $500 speaker cables? If you chose the latter, you are missing the boat, and will not make it in the cable business. ;^)

John

Well said Brian. Now you seem to grasp the situation.

That being said, I don't have inexpensive cables/cords, I'm probably over the old 20% ratio that cable manufacturers intiated 20 years ago (blame power cords).
However, I still cannot understand those who spend MORE on cables than on their gear and speakers. When your cable budget goes over the 50% level, I have to scratch my head.

I mean $15,000 speaker cables on $10,000 speakers and $13,000 power cord on $8,000 cd players does still confuse me.
Maybe it is the answer, maybe the paradigm has shifted and I'm not aware of it, maybe I just don't get it.

John

I wouldn't say that I have now gotten a grasp of this situation, I already felt this way; I was open to being shown I am wrong.

Brian
Brianmgrarcom

Certainly the results could not have surprised you though Brian, could they? I would have been stunned to the point of disbelief if someone tried to validate/justify the cost of cables.

If they do, I bet you'll find the catch all phrase being R&D costs. The customer is expected to pay for the designer's cable/cord purchases from competitors and his hours of listening. You see, they 'have to' buy competing products to test against their own. They have to buy a reference system of three to use as 'synergestic testing lab equipment'. Then they 'have to' listen hours a day for years sometimes, to tune in their products. That's a lot of time and money spent on research and development. Now you may say 'hey, that's what I do for a hobby'. However, when you are selling products it is no longer your hobby, it is a job, and you can write this in as R&D costs.

There is simply no way to justify the material/labor costs, it's all in the 'R&D' department.
Some manufacturers could have HUGE R&D costs. Maybe they have a million dollars or more tied up in R&D assests alone. Someone has to pay for that, and it's certainly not going to be the manufacturer.

Nobody said it would be easy. You must have very expensive audio gear and comparison cables in your 'R&D lab'.

Does that help?

John

The only "problem" I have with your scenario about R&D costs is that it is the same for the rest of the industry.

Brian

Believe me, I can't justify the cost of cables at all. I'm just saying that those that I have heard try to explain it, point to the ever elusive and inexplicable 'R&D', as a coverall expense.

Maybe, since they have the same 'R&D' as say a speaker manufacturer, the cable manufacturer feels the need to make the same net profit per unit sold to cover the costs for the same 'R&D' as the speaker manufacturer.

The only ones that know aren't talking, so we are left to surmise the reasons.

John

Will anyone be happier if they know the REAL reason?

Just wondering...
Tvad

I know the real reason: Capitalism

Cable technology is Capitalism at it's finest.
Call it 'Capitalism Gone Wild'. :)

Chrisla, great idea. Though once we get started, I may want to invest more in my own R&D department. nudge nudge wink wink.