Why the cost?

THE BREAKDOWN

Here’s what goes into building our cables:

  • The connectors we use cost around $5 or more for each. One cable has at least $10 in connectors.
  • The OCC grade of copper we use cost 7 times more than common ETP grade.
  • To build a 20′ SP3 speaker cable, the copper costs $19.08.
  • The light, flexible shielding for a 20′ cable costs $4.20.
  • The inner support system & dielectrics for a 20′ cable costs $3.25.
  • The memory retention filler for a 20′ cable costs $2.94.
  • Outer protective jacket for a 20′ cable costs $1.62. (This one is funny to me because skeptics claim that money is wasted on aesthetics. But the extrusion process of a typical cable cost about the same.)

The Cost of materials is $41.09. Charging anything less means losing money on the materials.

  • Estimation of Labor is $11. Manufacturing our cable requires 7 passes of layering and soldered by hand using high conductivity solder. And they are built to order. Typical cables require only two passes and are not made not to your request.

The total cost to make this cable is $52.09. If I charge one penny less, I’m losing money.

 

THE COST OF DOING BUSINESS

Doing business costs money; normal costs include heating, cooling, energy, taxes, licensing, cleanup, & recycling. And then there’s the tools and equipment. Cable manufacturing machines cost thousands of dollars. Our machines are built specifically to make the Audio Envy cable.

To pay an engineer to complete the type of testing and research we have done would cost around $750,000 plus six years of their career.  This amount of time invested is uncommon for cables. But understanding is key to innovation.

And there are other costs. Every spool of copper has to be tested and treated to obtain our standards. Promoting and maintaining Audio Envy and website is necessary. It cost money to process orders and ship the cable to you. A small percentage of the above costs are built into the final price.

We purchase raw materials in twenty thousand foot volumes. We find it is best to do shorter five hundred foot runs. So when improvements are discovered, we can implement them immediately. This approach costs a little bit more in labor. But it prevents waste and allows us to be a greener company. Most companies have to wait until a mega spool is gone to upgrade cables, but I want to personally know the cable I sell today is the best I can make.

So is it worth it? Our beta testers have put a number on it: a 40% improvement in functionality and audio gain. I am only aware of two other products in the history of audio reproduction that provide this degree of improvement for minuscule cost. If this was a black box with a knob on it, most people wouldn’t think twice about the cost. The value is not in the flash but in the results 

 

 

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