[Wind Chaser]

Apparently the price of copper must have gone through the stratosphere.  I just received an email from Virtual Dynamics about their new line of Genesis Cables.

$13,416 for a 5' Power Cable - that's almost $2700 per foot!

What will they think of next? 

[john1970]

More money than brains...

[Steve Eddy]

Apparently the price of copper must have gone through the stratosphere.  I just received an email from Virtual Dynamics about their new line of Genesis Cables.

$13,416 for a 5' Power Cable - that's almost $2700 per foot!

Heh. Yeah, that's a bit much to be asking for something that's not even in the circuit 90% of the time. 

se

[rollo]

Is this nonsense ever going to end.No wonder Audiogon and the like are prospering.How much could it have cost to manf this cord.
    I say boycott these vendors until they wake up.Having owned a business for many years I can understand making a profit but give me a break.
   It insults the integrety of the industry when Manf's gouge the buying public.When a company like Vista-Audio can offer a amp for $350 that will make you wonder why you spent more.This amp handily blew away a $7500 BAT amp at the last NY Rave meeting.
     So support the small companies that offer VALUE and performance not just HYPE.Why do you think their bashing the well made Chinese lines.Only recently some reviewers have praised the merits of such items and of course the greedy importers have raised their prices accordingly.
    If you buy an OPera Consonance 211 amp in China its $2100US here its $5500US.Bought mine in China.Take a company like Promitheus Audio offering a TVC for $370-$530US which is quite well done.Ther is almost 100 pages of threads here on AC.Why? Value and great sound SELL.
     So your help is needed just stay away and maybe just maybe the industry will wake up.
   rollo   

[Wind Chaser]

But can you blame anyone who takes advantage of all the stupid people with more money than brains, more ego than commonsense?  As an entrepreneur, if you can find a market for a commodity with an astronomical profit margin, why not take advantage of that opportunity? 

What irks me the most is when the industry rag reviewers hop onboard and proclaim how great this garbage is. But even without that hype I predict they will sell a few of these $13K power cords.  And that will give way to even more expensive cords to come, proving if you build it, they will come.

John

[macrojack]

Being an entreprenuer means providing people with a reason to give you money. I see no reason to give that guy any and most of us will respond in the same way. If he sells any, he will try to sell more. If he sells none, he will return with a new gambit. If you don't find any gold in this hole, then you go dig another one.
So, in short, you can't blame a guy for asking. We all acknowledge that there are fools spending ridiculous sums on overpriced gizmos. He read that and decided to try his luck.
It will end when we stop feeding it. No sooner.
This scene today is a bit like Sutter's Mill. Wages suck. Good jobs are scarce. But if you can sell $100 worth of parts and labor for $20,000 twice a year, you're in business. Same goes for $40,000 speakers and $20,000 turntables and $8000 cartridges. You can but a new Toyota Camry loaded for what? $28,000?

[rollo]

But can you blame anyone who takes advantage of all the stupid people with more money than brains, more ego than commonsense?  As an entrepreneur, if you can find a market for a commodity with an astronomical profit margin, why not take advantage of that opportunity? 

What irks me the most is when the industry rag reviewers hop onboard and proclaim how great this garbage is. But even without that hype I predict they will sell a few of these $13K power cords.  And that will give way to even more expensive cords to come, proving if you build it, they will come.

John

John,
          Taking advantage of people is the issue.This is all too common in todays world.I guess I'll go to a third world country and sell food for a huge profit and take advantage of the market.It's about integrety NOT MONEY.Glad I'm not buying anything from you.
         As far as the reviewers your correct as they seem to promote this lunacy.But you should understand why ITS BUSINESS,just helping the manf. sell their goods.
rollo

[Pez]

Hey come on guys, lets face it this is not a cable for those of use that spend less than $500,000-$1,000,000 on our system.  I for one feel like the pursuit of excellence can extend to pretty much any facet of any industry.  I don't know whether or not this cable is snake oil or actually empirically and, most importantly, audibly better.  My personal experience says that it's more the former than the latter.

Would I ever spend that much on a cable? No.  If I won the $250 million jackpot would I buy this cable? Maybe.  It's all about the value of money shifting, the mo' you got the less you care.  30 years ago spending $10,000 on a decent stereo was unheard of, now spending less for an excellent system is more or less unheard of.

Ok fine... I agree it's totally silly. 

[gme109]

Hey come on guys, lets face it this is not a cable for those of use that spend less than $500,000-$1,000,000 on our system.  I for one feel like the pursuit of excellence can extend to pretty much any facet of any industry.  I don't know whether or not this cable is snake oil or actually empirically and, most importantly, audibly better.  My personal experience says that it's more the former than the latter.

Would I ever spend that much on a cable? No.  If I won the $250 million jackpot would I buy this cable? Maybe.  It's all about the value of money shifting, the mo' you got the less you care.  30 years ago spending $10,000 on a decent stereo was unheard of, now spending less for an excellent system is more or less unheard of.

Ok fine... I agree it's totally silly. 

Having owned some Virtual Dynamics lesser priced power cords, Power 3, Audition, and now the Nite II's, I can say unequivocally, they make a difference. I'm a bargain hunter, thats why I bought the Power 3, at around $125, it blew away other power cords costing as much as $1,000. Although I can not afford the $13,416 Genesis power cord, if I won the lotto jackpot, I might give one a try. I must say though, I'm having a hard time believing it cost anywhere near that much money to produce one of these power cords.

[Wind Chaser]

Rollo,

In 1975 a man by the name of Gary Dahl sold over a million ordinary rocks for $4 each.    Since then everyone was left thinking if only I had the intrepid inspiration to pull something like that off…  Taking advantage of an opportunity within the legal limits of the law and taking advantage of someone deceptively are two different things.  You can’t accuse someone of lacking integrity for selling a non-essential product to happy willing customers for a colossal profit.  Those insanely high priced power cords even come with a 60 day money back guarantee!  Gumption, yes; lacking integrity, no.


John
 

[Wind Chaser]

Rollo,

In 1975 a man by the name of Gary Dahl sold over a million ordinary rocks for $4 each.

And today they sell for 400% more!
http://cgi.ebay.com/Pet-Rock_W0QQitemZ190079115214QQihZ009QQcategoryZ88433QQrdZ1QQcmdZViewItem

Nine bidders line up and almost $30 at this time with shipping! 

[tubepudz]

Where does the Audio Industry find all these consumers that have no brains and way too much money to spend?

[macrojack]

That is an excellent question. Who has so much money and why do they choose to spend it on audio equipment? Before I would buy a $100,000 pair of speakers, I would travel the world eating in fine restaurants and attending live performances. There is something stupidly venal about the idea of a half million dollar stereo.

[rollo]

Macrojack,
                 I believe its their money and their choice.No one pulled my chain to purchase the Pipedreams,I liked them so I bought them.Spending is freedom,if you have it enjoy.If you don't to bad.
       Not being pompous,its only money man and not yours so why the dis?
rollo

[PaulFolbrecht]

I used to think this way, and still do to an extent, but now, lo & behold, here I am with my own $20K+ system, which is nothing compared to many and yet totally insane in the eyes of many others.

However, being wired with Anticables speaker cable & ICs throughout, and VH Audio PCs, I spent a very *sane* about on wiring (but not according to any non-audiophile I tell who thinks I'm crazy and deluding myself that wire can make ANY difference...).

This mega-$ wire stuff is truly nutz. 

Gee, macro, with your $9K Zus your system's value has got to be up there as well...

[mjosef]

Where does the Audio Industry find all these consumers that have no brains and way too much money to spend?

Right here amongst us, across all lines, some are our neighbours, fellow citizens...from all walks of life.

[Pez]

Totally true.  I mean my friends are always saying things like "you spent how much on your cd player?" "Why in the world you spend so much on cables? Do they even make a difference?" So hey, $17,000 cable is just a different degree of crazy. 

[macrojack]

You're right, Paul. I'm somewhere in the twenties adding all the extraneous stuff together. But that isn't a $100K pair of speakers.
Nonetheless, you are right to turn that comment back on me. I didn't just go out and buy all this stuff though.  It accrued over many years as the result of trading and insider deals when I was an active player. In fact, I've done considerable downsizing since I started reading 6moons. The Definitions were a preposterous self--indulgence that still makes me shake my head. I don't think I've ever paid half that much for a car. The thing is, once I heard them, I just had to find a way to buy a pair. I've said it before, of course, but I really think this will be my last pair of speakers. I'm almost 60 and I have two boys in high school who want to go to college. The next step up from the Defs, if there is one, is going to be way beyond my wildest dreams price wise, so despite my past history, I think these are the end of the line.
One of the reasons I could get into these is the allocation of funds. Instead of having 50/50 or something like that in speakers and amplification, I now have about 15% in amps and 85% in speakers.

The poster is right. It's too bad I didn't invest in copper. Or silver. I have a close friend who made a solid million dollars in 2006 on gold. He told me how well it was doing. He pushed me to put some money in. He wanted to help me. No hope, though. I am just too leary of the stock market.

[Wind Chaser]

I just received an interesting email that ties into this subject...

An Extra $2,000,000 Profit on One Mailing
Ted Nicholas, The Success Margin

Would you like a simple suggestion that made one client an additional $2,000,000 profit on one mailing? Imagine what you could do with it!

Today I'm going to discuss one of the most important topics in any business.

The best way to price your product.

I'm often asked if I have any "secrets" to help choose the ideal price of a product.

My answer is always the same.

I never know what the ideal price should be.

So, I never decide in advance on a final price.

Selecting a price should never be set by any entrepreneur. In my opinion it should be set by the marketplace.

You should test different price levels before settling on a final price.

** A dramatic real-world story **

A friend and client of several years is a highly successful direct marketer of information products. Let's call him RA to protect his privacy. He's read my books, attended several of my seminars and owns all my tape sets.

He's heard me discuss pricing strategy numerous times. But RA resisted price testing. He's a stubborn guy. He just didn't like the idea. In fact, until a few months ago he never in his whole life ever tested a price. He simply set a price and went ahead with marketing.

I had occasion to meet with him two weeks ago and he told me the following story.

"Ted, while I've listened to you discuss it many times, I had never, ever tested a price for any product I've marketed.

But I figured, why not? Maybe I could improve my bottom line, especially if a higher price worked.

One of my main products is a home-study course that is very successful and profitable at $1,397.

So, I tried a mailing at $1,997 with everything exactly the same except price. I was amazed when we generated around 33% more orders. Of course, as all costs were the same (printing, postage, mailing lists, lettershop) the profitability just soared.

Frankly, I thought it was some kind of fluke.

But, I repeated the mailing. The result was the same.

I now felt a lot more positive about testing price, believe me.

In fact, I've been kicking myself for not having done such an easy and simple thing before. I've literally lost millions in extra profits. Especially since you, Ted, have been beating me over the head with how crucially important it is.

I then tested an even higher price of $2,997.

My whole world changed. I was astonished with the result of the mailing. The result is over 50% more orders than the original price!

I just finished doing a rollout mailing at $2,997 to my entire house list and best outside lists.

The net result is an additional bottom line profit of over $2,000,000!

One thing is for sure. I'll never again market any product without testing several prices.

Ted, I don't know how to thank you enough."

Has this actual case history yet convinced you price testing is an absolute must for any successful marketer?

In my experience, I've found that sometimes lower prices work best and produce the most profit. And sometimes higher prices do, as in the above example.

A lower price usually, but not always, results in greater units sold. But not necessarily increased profits. Much depends on how your prospect perceives the value of your product or service.

As a brain surgeon, you would undoubtedly flop selling brain surgery at a $99 weekend special. But you'd probably succeed at a $25,000 price. Which would you choose?

Or suppose you saw the greatest book ever written advertised for $3. You would probably not believe it.

I've had books flop at $20 and later sell 200,000 copies of the same book at $70. (That's $14,000,000!) The title: The Complete Book of Corporate Forms.

In any case, instead of arbitrarily putting a price on your product, as do most entrepreneurs, I urge you to let the marketplace determine your final price. You can be sure you will be delighted with the result.

Your correspondent,

Ted Nicholas

*About the author: Ted Nicholas has founded 23 successful companies. He has written 14 best-selling books and conducted hundreds of seminars around the world. He's been a frequent guest on radio and TV, including "Oprah Winfrey," "Today," "Good Morning America." For a limited time, receive "87 Marketing Secrets of the Written Word," an ebook by Ted Nicholas with your subscription to his free Success Margin newsletter.

[macrojack]

Wind Chaser - That doesn't just tie in. It answers everything. Those cable guys are all Ted's clients.