Most major electronics chain stores like Best Buy and Circuit City try to recoup the lost profit on TVs that get customers into the store by selling absurdly overpriced cables. These so called “Monster” cables are nothing special. Combine that with silly prices on TV mounts, TV stands, and so on, and you’ve just surrendered hundreds of dollars to them for profit.
This is nothing new (and getting a bit of attention lately). Chains like Home Depot sell ceiling fans at a loss to sell overpriced accessories and fixtures. The most classic example is the razor industry that sells razors cheap only to sell marked up razor blades. While I personally just bought a cable from Monoprice cheap to great success, Apple’s partnership with XtremeMac (for the Apple TV) has yielded a great value.
Together, they’re selling a six foot HDMI cable for a mere $19.95. Compare that with well over $100 at the major electronics stores. Apple is somewhat infamous for their profit margins, but this is one instance where customers are getting a straight up terrific deal. I know that the next time I need an HDMI cable, I’ll be stopping by the Apple Store.
Compare that side by side (viewing the screen) with a monster cable, and you'll see where (at least most of) that extra money is going.
And lets not forget inkjet manufacturers selling the printers cheaply because then they can gouge you on their ink cartridges where a full set of carts can cost as much as you paid for the printer.
I can tell you from working at Best Buy that their profit margins on tv's are sufficient. The employee discount was 5% above cost and that meant many tv's were $1,000-$2,000 off for employee's. One $9,000 tv was only $5,000 for us. The cables are diffentely a profit maker too. Those usb printer cables you have to pay $40-$50 cost employee's $2-$5.
I noticed the absurd pricing years ago. And it seems to be getting worse! I did a bunch of searching around and I found:
http://www.buyextras.com/
They have great prices and are reliable. I just bought a HDMI cable for my soon to be shipped apple tv . . .
6 Feet - Premium Quality 7.95
Quad Shield HDMI to HDMI
Gold Plated Cable
Yeah . . . that's right 7.95 . . . and no shipping rip off either . . .
Subtotal 7.95
Shipping 4.69
Total 12.64
. . . and I'm sure they STILL make a profit.
Maybe Apple is selling the HDMI cable at a loss in order to sell overpriced Apple TVs. ;-)
I'm glad somebody else noticed. I thought $19.95 was a bargain too.
"Compare that side by side (viewing the screen) with a monster cable, and you'll see where (at least most of) that extra money is going." - Tim
And he can probably here the "difference" between $500 platinum plated air core audio cable and the $20 Radio Shack cables.
I hear the 89 octane gas from Exxon is better than the 89 octane from Gasway. :)