Hi Gang:
Interesting article in Forbes magazine regarding cables and
Monster Cable.
http://www.forbes.com/forbes/1998/12...66a_print.html


-=Bill Eckle=-

Vanity Web Page at:
http://www.wmeckle.com

In article ,
William Eckle wrote:

Hi Gang:
Interesting article in Forbes magazine regarding cables and
Monster Cable.
http://www.forbes.com/forbes/1998/12...66a_print.html

This is really old news. Besides the "shocked, shocked" revelation that
retail stores like to sell high-markup accessories, the article contains
the claim that "Monster accounts for 2% of retail sales volume but 30%
of gross profit." This is suspect on mathematical grounds: how thin must
the margins be on the remaining 98% of sales?

If true, we should thank Monster that any stereo store is still open.

Stephen

In article ,
MINe 109 wrote:

In article ,
William Eckle wrote:

Hi Gang:
Interesting article in Forbes magazine regarding cables and
Monster Cable.
http://www.forbes.com/forbes/1998/12...66a_print.html

This is really old news. Besides the "shocked, shocked" revelation that
retail stores like to sell high-markup accessories, the article contains
the claim that "Monster accounts for 2% of retail sales volume but 30%
of gross profit." This is suspect on mathematical grounds: how thin must
the margins be on the remaining 98% of sales?

If true, we should thank Monster that any stereo store is still open.

That figure was only in regards to a small chain: "At Ken
Crane's, a chain of eight stores based in Hawthorne, Calif.,
Monster accounts for 2% of retail sales volume but 30% of gross
profit."

William Eckle wrote:
Hi Gang:
Interesting article in Forbes magazine regarding cables and
Monster Cable.
http://www.forbes.com/forbes/1998/12...66a_print.html

I work in high-tech, and get frequently solicited for overpriced and
underperforming software and hardware. These junkets are a joke compared
to the stakes high-tech sales play for... one sale and you retire to
Bermuda, those kind of stakes. All for products with much higher costs:
purchase the software for $x, then pay us $y to implement it for you,
then pay us $z every year to keep it running.

Monster cables are a bargain.

In article ,
Billy Shears wrote:

In article ,
MINe 109 wrote:

In article ,
William Eckle wrote:

Hi Gang:
Interesting article in Forbes magazine regarding cables and
Monster Cable.
http://www.forbes.com/forbes/1998/12...66a_print.html

This is really old news. Besides the "shocked, shocked" revelation that
retail stores like to sell high-markup accessories, the article contains
the claim that "Monster accounts for 2% of retail sales volume but 30%
of gross profit." This is suspect on mathematical grounds: how thin must
the margins be on the remaining 98% of sales?

If true, we should thank Monster that any stereo store is still open.

That figure was only in regards to a small chain: "At Ken
Crane's, a chain of eight stores based in Hawthorne, Calif.,
Monster accounts for 2% of retail sales volume but 30% of gross
profit."

If the result isn't typical, why report it? And how about the margins on
the remaining sales?

Ken Crane's should reevaluate its product line if the claim is true.

Stephen

In article ,
MINe 109 wrote:

In article ,
Billy Shears wrote:

In article ,
MINe 109 wrote:

In article ,
William Eckle wrote:

Hi Gang:
Interesting article in Forbes magazine regarding cables and
Monster Cable.
http://www.forbes.com/forbes/1998/12...66a_print.html

This is really old news. Besides the "shocked, shocked" revelation that
retail stores like to sell high-markup accessories, the article contains
the claim that "Monster accounts for 2% of retail sales volume but 30%
of gross profit." This is suspect on mathematical grounds: how thin must
the margins be on the remaining 98% of sales?

If true, we should thank Monster that any stereo store is still open.

That figure was only in regards to a small chain: "At Ken
Crane's, a chain of eight stores based in Hawthorne, Calif.,
Monster accounts for 2% of retail sales volume but 30% of gross
profit."

If the result isn't typical, why report it?

Because that is what journalists do. Maybe it's typical, maybe
it's not. There's no way to tell.

And how about the margins on
the remaining sales?

They are poor.

Ken Crane's should reevaluate its product line if the claim is true.

Give em a call.

"MINe 109" wrote in message
...
In article ,
Billy Shears wrote:

In article ,
MINe 109 wrote:

That figure was only in regards to a small chain: "At Ken
Crane's, a chain of eight stores based in Hawthorne, Calif.,
Monster accounts for 2% of retail sales volume but 30% of gross
profit."

If the result isn't typical, why report it? And how about the margins on
the remaining sales?

Ken Crane's should reevaluate its product line if the claim is true.

Or the staff at Ken Cranes are exceptionally good at pushing cables with a
50% profit...


Espen

In article ,
"Espen Braathen" wrote:

"MINe 109" wrote in message
...
In article ,
Billy Shears wrote:

In article ,
MINe 109 wrote:

That figure was only in regards to a small chain: "At Ken
Crane's, a chain of eight stores based in Hawthorne, Calif.,
Monster accounts for 2% of retail sales volume but 30% of gross
profit."

If the result isn't typical, why report it? And how about the margins on
the remaining sales?

Ken Crane's should reevaluate its product line if the claim is true.

Or the staff at Ken Cranes are exceptionally good at pushing cables with a
50% profit...

If the staff is so good, why is Monster only 2% of sales?

Let's try a little experiment: KC's sells one Monster a year at $2 out
of overall sales of $100. If Monster is 50% profit, accepting your
figure, then $1 is "30% of gross profit," which is $3.33. If Monster is
100% "profit", that's still only $6.66 gross profit for sales of $100.

Maybe that's a believable rate of *net* return but not so much for gross
when high-end is typically 50% or more "mark-up". Maybe Ken Crane's
isn't a high-end store, and Monster isn't a high-end product, in which
case we may as well be talking about over-priced kitchen gadgets and
supermarket shelf-space.

Stephen

Or the staff at Ken Cranes are exceptionally good at pushing cables with a
50% profit...


Espen


50%? And the rest... it's Monster you are talking about. PVC plastic and
copper are both very CHEAP