In Reply to: drug trade vs. speaker cable trade posted by chocolate_lover9999@yahoo.com on April 10, 2007 at 18:45:05:
The premise is that people get "hooked on cables" by getting the first set free whereby they have to spend more money to improve the "high". Ok. So, from whom have we gotten free cables for the past forty years? Zenith, Sony, Toshiba, Pioneer, Magnavox, Philips, GE, Thompson, Samsung, etc. I've never gotten any free cables with my audio purchases.As for outrageous margins, you should look into phono cartridges and private label speakers. I worked for a hi-fi shop back in the seventies. We sold several cartridge lines divided along two camps: good cartridges with reasonable margins and junk cartridges with cartoonish margins. An example of the latter was Empire. We bought the 999 PE/X in quantity for $4.00 and the list price was $59.95. At list price, the profit margin was 93%. In reality, we sold these for $19.95 and were able to inflate the system "savings" to the low end buyer whose criteria was largely based on the level of discount, not the quality of the sound.
rw
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Follow Ups
- You're confusing the villain - E-Stat 08:39:27 04/12/07 (0)