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

the wire in hi end cables is 'magic'. it costs lots of money to cast a spell on copper...even more for silver. also cable jackets that are cool colors are many times more expensive than colors that are not cool. cables also sounds much better (sweeter highs, and more detailed) when shipped in a wooden box with a lining......i can't believe i'm the only one who knows these facts.

Some cables cost a bit because they are hand made to order. Others may have an exotic construction with strands individually coated in ceramic, etc. Yes, copper has gone up in price lately, but it fluctuates like all commodities. Sometimes it's low in price. Amortization of R & D is also a consideration. However, for the mass market cables from the usual suspects, cables are simply a high margin product that are significantly marked up at the retail level. The big box store that sells you the TV on a small margin will try to make up some profit by pushing an expensive cable. The marketing pitch is that you should get a premium cable in order to get all the benefit and performance you paid for in the expensive TV (or stereo).

RD plays a big role, materials, along with low volume sales cant be dismissed. Cables get a huge mark-up and are many times a cash cow for dealers. And never forget the price of Prestige.

There are more subtle and manipulative forces at work which might better explain the high margin greed seen in cable peddlars.

Although cables can cost thousands, of course you can spend thousands more on speakers and all the other associated components.

Having suffered through the pain of that invoice - and with high expectations for joy and happiness to arise from a new system - the customer is in a psychologically vulnerable state, where he would be unusually sensitive to disappointment.

At that point, with those high expectations, and having already blown a considerable sum of money, the last thing you want to worry about is that a) you are not really getting your money's worth, b) not really going to get gloriously high end sound etc etc.

Regardless of the price of the cables, it is neither financially or psychologically the main purchase, so this still big but most likely lesser sum - despite the ridiculous mark up - seems like sensible insurance and often tempts the buyer into a oh what the heck I might as well really go for it - type of a purchase.

Similar psychology is employed when a car salesman will say how attractively priced the car is, before piling on a load of high margin options.

If my theory is correct, the "best" tires, oil, gasoline etc could all be sold at inflated margins to Porsche and Ferrari drivers.

I pay extra for high test gasoline, which some people say makes a lot less sense than expensive cables, but I have no intent to change.

Beware the accessories and extended warrantee salesmen!