The Cost of Cables

How common is reverse - price psychology I wonder? Some of the motivations that drive some to the reach for huge prices seem to drive others to the reach for the exceptional values. If you split folks into three groups, high price seekers, price indifferent, high value seekers, I wonder how the percentages would come out.

The issue, in general, may not be the cost of the cable, but the issue (question) Brian is raising IS the price (cost) of the cables. He isn't disputing that "better" cables cost more and/or work better. I have to assume that at this point in the thread, he is also convinced that some of the high price of cables is "because somebody will pay that price".

Theoretically, the forces of capitalism should drive down the price of anything where the profit margin greatly exceeds other manufactured items. Since that doesn't appear to be happening in audio cables, they either genuinely cost more to make, and therefore to sell, or there is some other mystical thing going on. Just glancing at the situation, it seems like it has to be the latter, not the former. The market for high priced cables is so small that even though the margins are fantastic, it's not a logical place for capital to divert itself towards to refine the process and the cost structure.

My own opinion is that the cost structure remains in place somewhat to support the R&D costs of bringing these products to market, coupled with the cottage industry nature of the field. In the lower ends, where people are buying HT receivers and surround systems, you see many more people buying Monster cabling which, while it doesn't necessarily hold its own against high-end cable, is a definite upgrade over the cheap interconnects that come with a standard A/V component. There is a level of cabling that is above what you need to get any sound at all that has been successfully marketed to at least some of the masses. It could happen at a higher level if there was some lever that caused more people to demand what they get out of a high-end cable, and then prices would plummet just based on volume and manufacturing efficiencies.

This is a very interesting thread,well balance opinion
were also being said.I agree for those who can afford
expensive cables they should buy the best cables out there,
One member said,He bought 7k ic,and he thinks its worth it.
His system is also very expensive.How much did it cost the
cable company to make this 7K IC?
After trying to discover which cables is good for the money
I found out an average system like mine did perform well
with pc less than $400,sp cables less than $400,IC less
than $300.My friend made me a speaker cables for less than
$150 it sounds better than most of the $1000 sp cables
I tried in my system.After this experience,I am not willing
to pay more than $500 on any cables.
I also know having the siltech LS 120GS edition years ago.
This cable is on a differrent league, but it is very costly.
Is it worth the price?I say 100% yes.But I cant afford to
keep it.
My only advise to fellow agoners,try different cables in your system from the average price to the more expensive
one,so you will know for yourself.
Good Luck.
systems,
system

Quite frankly, I started this thread because it appears to me that the purchase price of cables are just plain rediculous, but wanted an open discussion if anyone could enlighten me/us differently.

Obviously there is nothing wrong with companies making a profit. But the profit margin on cables would appear to me to FAR exceed that of the rest of the audio industry.

I lay my cards on the table and say that cables make a difference to me from my experience. So with that said, I understand when people say, "if one hears a substantial improvement, the price is worth it to them". It seems to me that cable companies are gouging us for this in comparison to the rest of the industry.

Brian

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