Why is there such an extreme markup on cables?

[rocadelpunk]

This always really angered me, because if I need a cable *now* I'll have to suffer the consequences or wait 3-5 days for shipping.

why is it you go to any chain store...bestbuy/microcenter/compusa/circuit city whatever and a hardrive cable..20 bucks, usb 2.0 cable 20 bucks,


god help you if you want a printer cable!

Yet, if one goes online to pricewatch.com or somewhere, you can get the cables for a couple of bucks.

I understand these places make money off accesories...but come on, why should I have to pay 500% markup. How is this practice still going on?

 

[Ornery]

God, whatever you do, don't try Walmart, who just might give you a halfway fair price on the damn thing.

$7.00 for USB cable, which is high, but reasonable. If you "need an IDE cable immediately", it's your own fault for not stocking up on the $2.00 ones on your last NewEgg order. Or, are you none too happy with the way your beloved NewEgg stacks shipping costs on such purchases?

 

[kranky]

Businesses need to make a profit. B&M businesses have to pay for utilities, real estate taxes, and a bunch of other things that net-only stores don't. They also lose money to shoplifters, people who break stuff and return it, people who buy an expensive item and return a cheap one in its box, etc.

You are paying for the convenience of getting your cable now, and you decide whether it's worth a few bucks for the convenience.

 

[vi edit]

It's a convenience item that you NEED to have to make your crap work. And most of the time you need it NOW and can't wait to get it. So they jack you at the register for it because they can.

Anyone remember when parallel cables used to be included with printer purchases?

 

But OSU Buckeyes like you continue to pay $65 for a double-gold-shielded audio cable!

 

[Schadenfroh]

Local stores here carry USB 2 cables that are about 15 feet for about $4. Just dont shop at office depot

 

[MeanMeosh]

Originally posted by: vi_edit
It's a convenience item that you NEED to have to make your crap work. And most of the time you need it NOW and can't wait to get it. So they jack you at the register for it because they can.

Anyone remember when parallel cables used to be included with printer purchases?

i remember when they used to package USB cables with printers.

 

[vi edit]

What really upsets me is when an elderly couple is in buying their first computer at Best Buy and the salesperson "helping" them out throws the 6' gold plated UBER high speed printer cable on their cart for $60.

 

[DaTT]

Originally posted by: vi_edit
It's a convenience item that you NEED to have to make your crap work. And most of the time you need it NOW and can't wait to get it. So they jack you at the register for it because they can.

Anyone remember when parallel cables used to be included with printer purchases?

I DO!!! I DO!!!!

 

[cjgallen]

Originally posted by: rocadelpunk
I understand these places make money off accesories...but come on, why should I have to pay 500% markup. How is this practice still going on?

Isn't EVERYTHING marked up 500% in retail?

 

[Schadenfroh]

Originally posted by: kranky
B&M businesses have to pay for utilities, real estate taxes, and a bunch of other things that net-only stores don't.

Online stores have to pay for servers, massive IT staff, larger than normal customer support staff, massive bandwidth, etc.

They also lose money to shoplifters, people who break stuff and return it, people who buy an expensive item and return a cheap one in its box, etc.

Online stores get to deal with people buying items, finding that they dont work or overclock like they would like, breaking them on purpose and RMAing them untill they get one that mods or overclocks like they like it.

 

[vi edit]

Originally posted by: Schadenfroh

Originally posted by: kranky
B&M businesses have to pay for utilities, real estate taxes, and a bunch of other things that net-only stores don't.

Online stores have to pay for servers, massive IT staff, larger than normal customer support staff, massive bandwidth, etc.

They also lose money to shoplifters, people who break stuff and return it, people who buy an expensive item and return a cheap one in its box, etc.

Online stores get to deal with people buying items, finding that they dont work or overclock like they would like, breaking them on purpose and RMAing them untill they get one that mods or overclocks like they like it.

Online entities do not have a fraction of the overhead costs of a B&M. Don't even try and compare the two.

 

[Ornery]

Even with the huge overhead, Walmart or Target can get you a cable for $7.00 instead of $20.00.

 

[Whoozyerdaddy]

Originally posted by: rocadelpunk
This always really angered me, because if I need a cable *now* I'll have to suffer the consequences or wait 3-5 days for shipping.

why is it you go to any chain store...bestbuy/microcenter/compusa/circuit city whatever and a hardrive cable..20 bucks, usb 2.0 cable 20 bucks,


god help you if you want a printer cable!

Yet, if one goes online to pricewatch.com or somewhere, you can get the cables for a couple of bucks.

I understand these places make money off accesories...but come on, why should I have to pay 500% markup. How is this practice still going on?

I'm in the biz... I have a little saying when people ask me about that: "The only guys who make money in this industry are they guys who make cables and stands."

Let's define terms real quick. When I say that the mark up on something is "40 points" that means 40% of the price you pay is profit for the store. What you would call a 100% mark-up I would call 50 points. Mmmkay?

So for starters nobody gets a 500% mark up on their cables. If you're seeing that kind of price difference between cables online and cables in the store, they aren't the same cables.

The average cable margin for a best buy or even a small specialty retailer is about 70 points for the cheap crappola cables, 60 points for the mid-grade cables and 50 points for the hi-end stuff.

The margins on these items are so high because retailers know that consumers want a great deeal on the expensive stuff. Giving those great deals to get your biz cuts into the store's margin. Low/no margin = no store so you have to find a way to make that up.

Enter cables/accessories/extended warranties. Why do you think it's impossible to buy anything at a Best Buy without being assaulted by the sales guy for a warranty or a cable or some other accessory? Because the item you're buying, by itself, doesn't generally have enough margin built into it. By piling on the accessories and warranties the overall margin of the sale rises.

In a lot of respects it's that "no such thing as a free lunch" saying brought to life. You might get your toy cheap, but they'll get you in the end with the other stuff.

 

[vi edit]

Originally posted by: Ornery
Even with the huge overhead, Walmart or Target can get you a cable for $7.00 instead of $20.00.

OOS

 

[PingSpike]

Cables are pretty bad. I remember I needed a 3ft external 50pin SCSI cable a few years back, it was to connect an extra 2x cdrom drive that I got for free. I thought I would just drop by staples to pick one up, expecting to get jacked a little bit. They wanted...$80 for it. I bought one off ebay for like $10.

 

[Ornery]

Originally posted by: vi_edit

OOS

Not at your local B&M!

 

[Crappopotamus]

Originally posted by: vi_edit
What really upsets me is when an elderly couple is in buying their first computer at Best Buy and the salesperson "helping" them out throws the 6' gold plated UBER high speed printer cable on their cart for $60.

that would be me i used to work at futureshop and we'd make more in commission off the cable than the printers we sold. heh. can't knock the hustle.

 

[Ornery]

Your parents must be so proud! Let me guess, dad's a used car salesman, right? Mom sells Amway?

 

[imported_Phil]

Originally posted by: cjgallen

Originally posted by: rocadelpunk
I understand these places make money off accesories...but come on, why should I have to pay 500% markup. How is this practice still going on?

Isn't EVERYTHING marked up 500% in retail?

Nope.

I worked for a year in the UK version of Best Buy, and while hating it more than anything I've ever done, I found out a few useful nuggets of information.

For example, the markup on PCs is something like 3-5%. That's why accessories are pushed so hard, as they generate most of the bottom line for this particular company. That and service plans.

Secondly, Belkin "Gold-plated" cables are no different to the regular Belkin cables, which incidentally also use gold in the contacts. The Belkin rep joked to us that there's "ah heck-all difference and the only reason you stock them is because there's a cashback incentive for the sales guys to sell them"...

Lastly, said gold-plated cables are sold for £20 ($35-38).

The company buys them at 98pence each.

Belkin makes them for 42pence each.

Now you see how these companies remain in business.

 

[Lonyo]

Originally posted by: Ornery
God, whatever you do, don't try Walmart, who just might give you a halfway fair price on the damn thing.

$7.00 for USB cable, which is high, but reasonable. If you "need an IDE cable immediately", it's your own fault for not stocking up on the $2.00 ones on your last NewEgg order. Or, are you none too happy with the way your beloved NewEgg stacks shipping costs on such purchases?

$2 for an IDE cable?!?!?

 

[Skiguy411]

Actually, I work a computer store and a couple of the cat5 cables here have a %500 markup-yet still cheaper than bestbuy.

 

[imported_hscorpio]

Cables for video/audio are worse I think. I was looking for the optical audio cables at frys and the price ranged from $20 to 70. I ended up getting them at monoprice.com for $3.70. The hdmi cables are even worse, $100 at frys but they are only $7 at monoprice.

 

[Ornery]

Originally posted by: Lonyo

$2 for an IDE cable?!?!?

Is it just me, or does it seem to anyone else, that the current crop of members is getting more & more dense?

AMC 36", Teflon Coated, True ATA133, Flat Cable for IDE Devices, 3-Connector Model CATA100-363 - OEM $1.99 ea. for 3+ units.

why is it you go to any chain store...bestbuy/microcenter/compusa/circuit city whatever and a hardrive cable..20 bucks, usb 2.0 cable 20 bucks,

 

[EyeMWing]

I have *BOXES* of every conceivable cable. When my customer rigs don't need a cable, I keep them.