In Reply to: Why are PAD cables used a tough sell? posted by sk on December 15, 2014 at 14:06:20:
I think that most audiophiles realize that cables (and headphones and phono cartridges) have larger dealer profit margins than electronics and loudspeakers.
Furthermore, the top, highest-grossing dealers often get substantial quantity discounts, which is legal under the Robinson-Patman act as long as the discounts are available across the board. So that becomes a case of the rich get richer. I have heard of prime dealers getting as much as 70 points off, which would mean that as part of a system sale, that dealer could throw in the cables at half of list price, yet still make a decent margin.
If the list price of a pair of interconnects is $1500 and the "street price" is $1000, then it likely will be tough trying to get more than $500 for them used.
Look at the musical instrument business--you see an electric guitar in a music-store window, and the sign on it says, "LIST price $999, our EVERYDAY price $699, today's SPECIAL SALE price $499"... Well, isn't that (at best) just a $399 guitar looking for a sucker to overpay for it?
The current business model of high-end audio sales is in my humble opinion unsustainable. I think that there is going to be a major shaking out, or rather, people will wake up and realize how much shaking out there already has been.
Speaking entirely for myself.
jm
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Follow Ups
- I thought (almost) ALL used cables were a tough sell... . - John Marks 08:37:10 12/24/14 (4)
- RE: I thought (almost) ALL used cables were a tough sell... . - fantja 11:10:32 12/24/14 (3)
- I am genuinely sorry to find myself so doomy and gloomy - John Marks 13:47:32 12/24/14 (2)
- RE: I am genuinely sorry to find myself so doomy and gloomy - fantja 14:54:32 12/24/14 (0)
- Wise words. Thanks. (nt) - axolotl 14:13:13 12/24/14 (0)