ROOSKIE
Major Contributor
Yes and to be fair I also worked in HiFi for a short year and passive speakers were also often marked up 75% and at least 50%. Yet at that time electronics had little margin and TV's had zero - even losses. (sales folks were supposed to sell extended warranties on TV's and were pushed hard for that, every TV was pitched as time bomb waiting to be warrantied.)When I worked in the industry in the UK, a 'respected' cable brand made in the south of the UK offered a 60% profit margin for stocking their range of cables - purchase a £350 GPB retail cable for 116 GBP trade price ex-VAT and made a profit margin (not mark-up) of £175 GBP ex-VAT on every cable you sold. If you asked for a discount you would first be offered a mega discount on the cables or offered them free as that was where the obscene profit margins were.
The sales team would push the most revenue making items, to be honest they were not rubbish but were severely over-priced, the What-Hi-Fi type magazines did us a all a favour and spread the myth that at least 10 - 20% of a hi-fi budget should be spent on cables etc.
So everyone was supposed to spend a huge percentage of their budget on speakers. You might say smart but really it was driven by profit motives and not any sort of wider purpose. I think that is still the case, however the costs of producing electronics have dropped by degrees and the prices have gone up (at least in the luxury price classes) so electronics have reasonable margins often now, especially expensive ones. The budget stuff still has a cup of coffee profit margin.
Anyway this was around the time Monster cable was really starting to brew up some pricey RCA's and Speaker wires, sometimes sales folks would just take them off a rack and include them without even a thought on a big sale.