Pure Monstrosity re: Monster tm cables


NEW YORK - TO ENCOURAGE audio salesmen to push its costly stereo cables, 12 times a year Monster Cable flies a dozen or so top producers from stores around the country to all-expenses-paid weekends at places like the Napa Valley, Hawaii and Germany.

Founder, chairman and sole owner Noel Lee even lets the star salespeople zoom around in his 13 sports cars, including a $200,000 Ferrari.

Lee needs good salespeople because his product requires lots and lots of selling. Buy a $400 stereo from the Good Guys in California and chances are you'll also walk out with $50 worth of Monster cables. Buy a $1,000 Marantz amplifier from Ken Crane's Home Entertainment in California and you'll get sold on a $100 connecting cable.

Do you really need that fancy wiring? That depends on how well you hear. Some say heavy-gauge, rubber-coated lamp wire at 25 cents per foot affords nearly as much fidelity for audio signals as the gold-tipped, electromagnetically shielded cable Lee sells for between $3 and $125 per foot. Chances are most will never tell the difference. In short, it is a product where most of the value is in the mind of the buyer. Thus, Lee lavishes attention on the people who move his goods.

Unlike Kimber Kable and Straight Wire, which do minimal sales staff training and rely almost exclusively on print advertising, Monster Cable puts $13 million a year, 15% of sales, into training and incentive programs. These are aimed at convincing store owners and appliance salesmen that it pays them to push Lee's products.

Salespeople get fancy trips. Store owners get fancy markups. Most of the customers, after all, come to the store armed with competing price quots on the CD changers and the amplifiers. The wires, in contrast, are an afterthought and don't have to be competitively priced. Monster's cables typically yield a 45% gross margin, while the more visible audio and video components hover around 30%.

Cables are to a stereo store what undercoating is to a car dealer. At Ken Crane's, a chain of eight stores based in Hawthorne, Calif., Monster accounts for 2% of retail sales volume but 30% of gross profit.

Lee, a short, crisp 50-year-old with a mechanical engineering degree from California Polytechnic State University, started this firm in 1977.

He's since built it to expected sales of $90 million for 1998, more volume than almost all of Monster's competitors combined. Lee probably nets 10% pretax.

The huge sales and training budget covers more than junkets for the retailers. Sales personnel are taught things like this: Cheap cables pick up electronic noise from telephones, televisions, hair dryers or the audio equipment itself. Premium cables deliver more signal. What they don't say is that you can solve some of the interference problem by draping your wires away from sources of interference.

After Lee gets through training a store's staff, no customer can leave the store without becoming cable-conscious. In a Good Guys shop near San Francisco, Monster cables visibly hook up every active product display. The Monster name is printed on canopies above the sales racks, and its packages are lined up like invading army troops on the shelves.

Every month Lee sends out the numbers to each store that agrees to his aggressive sales strategy, tracking the performance of each salesman and a store's overall performance rank among competing retailers. The rankings are based not on dollar volume but on the percentage of customers who go out of the store with a Monster product. It's from this list Lee selects the winners of his all-expenses-paid weekends.

Early in the program, one Midwest salesman almost totaled a Ferrari by driving it off a cliff, but was saved from the Pacific Ocean by construction netting. For Lee, it was just another cost of doing business.

It takes sizzle to sell sizzle.

(from Forbes Magazine)
neubilder
This is a great discussion about a subject that I believe continues to hurt the High End Audio Industry, that of its participants looking down on its marketing successes. It is not limited to Monster Cable. Look at all of the Krell and Mark Levinson bashing that goes on. This is the only industry that I can think of off hand that punishes its participants for having a business plan that includes marketing techniques that are utilized in almost every other industry that I know of.

Every cable manufacturer owes Monster Cable for the opportunity to have a marketplace to sell to. They should pay Noel Lee a royalty for every interconnect or speaker cable that they are able to sell outside of the interconnects and speaker cables that come standard in the box. Noel Lee was one of the, I would argue the most important, pioneers of the cable industry.

I attended one of his in-store sales meetings when I sold stereo back in the early nineties. To begin with, Noel Lee is a really nice, down to earth, guy. He understands that it is important to sell a customer on the notion that cables are a separate component. For this to be successful it is important that High End Audio Salespeople are trained in how to educate those who are not necessarily audiophiles. This education, in my opinion, opens the door for future members of our hobby. I know that it was a salesman who pushed me toward B&W speakers instead of the Cerwin Vega speakers that Consumer Reports rated highly that brought me into this hobby over 20 years ago.

As far as Monster Cable products are concerned, I believe that they are very underrated in the Audiophile community. Their high end interconnects and speaker cables are competitive with anything that is out there. You may like them more or less than other cables, but I would argue that they offer more more performance for their pricepoints due to the economies of scale of their manufacturing compared to smaller cable manufacturers. There are some horrible sounding esoteric hand made cables and some great sounding machine assembled cables. I have owned many different interconnects and speaker cables from various manufacturers and I have always liked the way that Monster cables have tended to sound in my different systems, full bodied. Not the most detailed cable, but not the least either.

How do Monster Cable detractors explain the performance of their power conditioners? What about their Entec line of DA Converters. Do you remember their highly rated and wonderful sounding phono cartridges?

I read Sean's post and I respectfully disagree with the idea that a twisted cable technology is necessarily superior to other technologies. As an example, Tara Labs and others have made exceptional solid core cables for many years. There are also many different variations of twisted cables. AudioQuest, Cardas, and Kimber are excellent twisted cable manufacturers that utilize different philosophies, materials, and manufacturing processes to create their products.

My last point is about sales incentives in the High End Audio Industry. Monster is far from the only High End Manufacturer to offer sales incentives. When I was selling in the industry Adcom, a respected high end audio company, had the best incentive program of all companies. They offered their products on a point system based on individual sales person Adcom performance. They were far from the only ones doing this. It is also standard for High End Audio Companies to sell their components to audio salespeople, reviewers, and other insiders for accomodation pricing, typically 50 percent of retail.

Just some thoughts on the subject.
I agree that profiteering in the audio industry - cables in particular - is dragging it down. - I believe good cables can benefit a system, I have heard the improvements and have spent a couple of hundred on them myself, but ANYBODY marketing a cable for thousands of dollars is a huckster and a profiteer.
Yes Gallaine, Monster is successful, good for Noel Lee. - I for one will not support him.
For sake of clarity, i brought up "consumer education" following up on Viridian's comments. I don't think it is any manufacturer's job to educate the public. However, i do feel that it is a manufacturer's job to continually research their field and improve their products. Given the amount of time that Monster has been around and the amount of resources ( people and funding ) that they have at their disposal, can anybody honestly say that they have done such ?

As to my comments about twisted pairs being "superior", i was specifically making comparisons between Monster's "old style" zip cord and their newer twisted pair design. Using identical conductors, type and amount of dielectric, etc... a twisted design ( as compared to zip cord ) lowers inductance, lowers nominal impedance, reduces the susceptability of RFI, increases high frequency linearity, etc... Those facts are what i based my statement on. Sean
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I just can't believe how many time you guys broke trademark laws by using the "M" word. Yikes!