A friend who works in a local electrical retailer shared this following (paraphrased) conversation with me. The retailer's name is identical to that of a large car selling chain in the UK, but pluralised.
Me: So why do you push "premium" cables to people? I know, and you know, they're absolute bollocks.
Him: Retail therapy. My job isn't to sell you, him or anyone else what's best for his needs. My job is to make that person happy. A happy customer is a repeat customer. It's a customer that'll come back and ask for $SPEAKERSNAME$ again. That fills my pay packet now and in the future.
Me: Where does the money go? How much is the markup, so to speak?
Him: I can't tell you exactly, but if I sell £4,000 of equipment and £500 of interconnect, I get more wage on the cables.
Me: I assume the company makes a fair packet on them too?
Him: Not really. The cables are the salesman's perks more than profit for $RETAILERNAME$.
Me: How exactly do you sell these little cables for such an extortionate price? I mean [I pick up a cable nearby, it's a VGA passthrough from an old Creative DXR2) this thing doesn't exactly inspire feelings of grandeur.
Him: Nobody likes to look stupid, Wayne. Someone spending several grand on kit has to justify that purchase to themselves. Who better to fool you than you? I say it's a superior cable with better inherent noise rejection which suppresses jitter and guards against ground loops, resulting in a sound stage of enhanced clarity. We both know that's partly true since any half way decent cable does that, so the law can't touch me. The punter's justification is given, his wallet is open. You can't deny that Monster Cable are decent quality and probably the best you're going to find in any high street retailer. They'd have been shut down under the Trade Descriptions Act long ago if what I tell the guys isn't true.
Me: So basically you list the parameters that any good cable has, but for the premium cable only?
Him: Exactly.
Me: Would you lie about it? Like say some BS about some vaguely defined technical term?
Him: Probably. If it clinches the sale, which I'm there to do, I probably would. The punter knows he wants it, he just needs to feel happy about it. I'm there to make him feel happy about it. I'm not there to tell him it's got zero point zero zero zero three impedance per metre, he hasn't a clue what that means and that ruins his mood.
Me: And if I asked you about the brown box cable?
Him: Nobody asks about those.
Me: But what if I did?
Him: I'd tell you it was sufficient to do the job, I'd probably make sure it was the right kind of cable, since it doesn't do me any good to be selling a TOSLink to someone wanting coaxial but only telling me S/PDIF.
Me: You wouldn't hype it or spin off its praises?
Him: Why? I get virtually nothing for selling that. We don't even like it being there. The sooner you're out of the way, the sooner I can get on with selling something that does pay me.
Me: If I'd just bought a large TV with a good HT setup around it, would you then suggest to me that my purchase is complete with the premium cables?
Him: Absolutely! Punters feel better when they associate quality with everything they buy, happiness, remember? If a guy's just crashed out £4000 to use my last example, on some equipment, then he's expecting to spend a ton on the cabling. It's like a secret society that he's just found the keys for. Everyone likes that feeling. I'm not here to disappoint him, if I offered the cheapy £1 per metre cable, he's going to go somewhere "that knows what they're talking about" and offers the £20 per metre cable. Price is quality and the product isn't important.
Me: And you don't feel bad about that?
Him: No. He's happy. I'm happy. Win-win.
Me: That could be embarrassing if someone who is clued in walks in.
Him: We know how to spot them. They don't look at the prices, they're more examining the kit. When they want something, they don't ask me, they tell me. You'll never hear the words "What would be best for..." out of someone immune to the patter. They know what they want, they know what's best for what they want, they're just here to buy it.
Me: And you don't try the premium cabling pitch on them?
Him: Absolutely not. I'm not going to make myself look bad in front of a whole storefront. Chances are he's got SnRs falling out of his earlobes and a PhD in electrochemistry, I'd be eaten alive.
Me: Those guys don't make you much money then?
Him: But they're not common either.