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In Reply to: Why is perfume so expensive? posted by BillH on October 26, 2001 at 13:45:48:
And custom firearms, boats, furniture, Ferrari's, Lamborghini's, and Rolls-Royce's......there is a important and serious element of hand-craftsmanship (for some cabling) that is not discussed. To paraphrase Bob Crump, much of cable-making is art rather than science.And (sometimes) years of research, trial and error, and building something completely by hand, rather than merely pulling pre-made cable off of a spool and terminating it....these processes are apples and oranges. But all we see is the final product, and cannot value the hand-labor that goes into each product. Unfortunately, as you infer, the marketing of most cable speaks to specifications and materials....that's all that *can* be marketed because most cable *is* machine-made. What else is there (for them) to discuss?
However, there are a number of small manufacturers making truly hand-crafted products that are primarily charging for good materials and labor, and sometimes an innovative design....NOT advertising, office space and employees. And the markups are not always the same, or equivalent. It is patently unfair to lump these manufacturers in with the big boys (who create the largest margins), but as humans, we tend to do that very thing. "Cables are cables". NOT.
Cosmetics and perfume companies spend literally YEARS developing product....and expect to lose money for the first 2 or 3 years. If their expensive advertising campaigns don't take hold, these companies can lose fortunes, and sometimes do. But millions upon millions buy other products from these same companies, creating the cash flow to finance the R & D. It's all about creating "market share"....profit comes later. Perhaps in this regard, there is "some" similarity to the large, well-advertised cable companies that we see in all the magazines. They keep pumping in millions of dollars for ads to create market share....and guess who pays for that?? The very purchasers of those cables. They're certainly NOT just paying for the cable, or it would be a hell of a lot less expensive. But again, this is a far different picture from the small manufacturer building cables one piece at a time, with 2 hands.
The proof, as always, is in the listening. We makes our choices, and we pays our money, but hopefully, we get some solid education in the process. This forum, and others, are most helpful in this regard.
alan m. kafton
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Follow Ups
- Re: Why is perfume so expensive? - alan m. kafton 15:41:06 10/26/01 (0)
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