Virtual Dynamics Response

April 9, 2008 by Lukas Gilkey
Filed under: Home Audio > Wire & Cable > Power Cables



We just received an email response from Virtual Dynamics regarding our recent Virtual Dynamics Power 3 - 2000% Profit Margin article.

The response below is shown in its entirety.


"Hello Audiojunkies News,

In regards to this article: http://www.audiojunkies.com/blog/1197/virtual-dynamics-power-3-2000-profit-
margin

I appreciate the interest that you have shown in Virtual Dynamics and it's product, the Power 3. The concerns about markup that you have stated on your website are very real ones, and they are concerns that we also share about the audio industry.

I would like to point out a few important points that I feel your article failed to address about Virtual Dynamics.

Firstly I felt that the piece was definitely trying to be fair and balanced. I thought your writing was clear and generally accurate, as well as heartfelt, but there are a few point which I feel change the context of the piece.

Firstly, our total costs for parts (not including shipping charges to obtain them) is $26, not the $15 mentioned in the article. A Power Three is assembled in about an hour by a worker who makes anywhere from 15 to 20 dollars an hour (a wage that ensures we are able to retain skilled labor.) There are marketing, overhead costs, and free shipping and handling from our website on the cable, which you can purchase (if you live in North America) for $99.00 (sale is on at least until June, and I will likely revise the price list to make this permanent at that time), shipping included.

I understand that we don't have much credibility with you at this point, but the numbers are only part of the story anyway.

The point of the Power Three cable has never been to be "The Uber Audiophile Cabling Extreme," the Power Three is designed to tell a story, which is precisely why many common parts, such as the UL listed "home depot" 14 gauge wire, are used in its construction.

The story of the cable is designed to show that the metallic material that surrounds the conductor is capable of removing mechanical and electromagnetic noise. It is this principle that forms the core of what we call "Dynamic Filtering" technology.

The Conductor used in this cable is not "Linipur Conductor" nor is it advertised on our website, or elsewhere, as such... This is unfortunately a common misconception. It is a solid core conductor, but Linipur is only available in Testament series and above, our custom built solid core copper conductor.

All of the cables are sold Factory Direct, which means that you would never buy one of our cables at more than 50% off the listed retail price. The retail price is provided as a guide to help compare with other products in the audio cable industry that are sold through dealer networks. This is unfortunately another misconception that we have fostered by trying to straddle the line between prestige products and ones built from a standpoint of value and design.

Our intent is to phase out the "levels" of speed of light and dynamic filtering and provide more accurate specs on the magnet size and strength, and the amount and compression of the various metallic powders that make up "Dynamic Filtering."

Finally on your remark "If you don't feel a cable or power cord sounds as good as its price tag suggests it should, send it back." We agree with this whole-heartedly. It is the heart and soul of what the audio marketplace should be. At the end of the day, it's not about gadgets, it's about music.

You can email me here, or at xxxxxx(at)gmail.com, or at xxxxxx(at)virtualdynamics.ca. Would it be a problem for me to post in the comments of your news article?

I hope this finds you well,

-Brad Blackmere
Marketing Director
Virtual Dynamics"

Source: Virtual Dynamics
Source: Virtual Dynamics Power 3 – 2000% Profit Margin
Comments (8)
mjf595 6 months ago

interesting
Neil Middlemiss 6 months ago

Handled like a true Marketing Director at an "audiophile" cable company. I do, however, give him some credit for facing the problem to a certain extent.
Dave Kay 6 months ago

Brad, thank you for your response to my article. I estimated the costs of the components based on the prices mentioned by the original Head-Fi post. If you say it's $26, I'm certainly willing to take your word for it. I believe the Virtual Dynamics website could be much clearer as to the fact that the "Power" range does not use Linipur conductors. The Power 3 is specified as using 14 gauge THHN, but if you click on that link, or the "Conductor" link, they take you to the same Linipur page as the 10 gauge conductor link from the Testament series. This, in my opinion, is at least a passive indication (if perhaps unintentional) that the THHN and Linipur conductors are related, if not the same thing.

If VD cables are not sold through dealers, then I believe that the "MSRP" should be the prices that VD customers are actually going to pay, not some artificially inflated "competitive" number. There are a lot of brands, Electra Glide perhaps being the most infamous offender, that use ridiculous MSRPs to try to artificially inflate the value of their products vs. the competition and the value of the "deal" that customers are getting in terms of "discounts" to that MSRP that no one ever actually pays.

More detailed explanations of what's actually in VD cables vs. the current levels of speed of light would definitely be a big improvement.
Mike Edgar 6 months ago

So it's $99 for semi-sheilded extension cord, right?
aCiD 6 months ago

WAIT...... what I gathered from that is they KNOW it's composed of grossly overpriced Home Depot parts.

They just wanted to clarify it's not AS grossly overpriced as you originally concluded.

Wow.
soydeedo 6 months ago

Well, acid, some people will pay for certain services, and if that list includes assembling a cable they can create themselves then why not create a business to serve them? Yes, the profit margin is high, but people are welcome to vote with their wallets.

Now I went to the page and the conductor technology link for the Power 3 cable did indeed lead me to the Linipur information link as Dave Kay stated above, so that's definitely misleading advertisement - as is the 300+ "MSRP". If the company's reputation weren't already under question these two items could be dismissed, but it does seem a bit dodgy having all three of these issues at once.

Kudos to them for trying to handle the situation with a little class, though.
mardelgo 5 months and 4 weeks ago

Well I hoped that they will say that the cable of the pictures was a clone and no one of their cables.....that would has been the only explication that will satisfy me....I will no trust that company base just on this cable, in others words they say that because it was a economical cable that it is why they have cheap components.($300, come on, get real, I can re-wire all the electrical instalation of my hometheater with that money¡¡¡) But I agree with something, they need a very skill personal to make this piece of s… cable to look good….jaja
kevin h 5 months and 1 week ago

I just recieved a virtual dynamics david r interconnect in the mail.I was told that if I did not care for the cable that I could return it for a full refund. (I am not staying this is policy just what I was told)The cables are very good,at the price point almost hard to accept how good but about ten or fiffteen hours later I want to replace my other similarly priced cables with virtual dynamics,but at this point I cannot afford to point being value is important to me. Personally I would not put much faith in any $99.00 power cord being a significant upgrade from generic cords supplied with the bat and audion electronics I now use.But if the market presents a demand for this product at this price what businessman wouldnt satisfy that demand and pay some bills.virtual dynamics interconnects absolutly kick ass at price point,as for power cords I'm going to keep my dirt cheap giant destroyer to myself before people start turning big profits on that just like what happened with vinyl in the last ten years(thanks bigmouths).In time (hopefully)we learn to achive beautiful sound that elevates the spirit and takes us to a happy place where it is really about improving my quality of life.Or we can buy products that are pretty clearly the equivilent of going to a nightclub with a sock shoved down the front of our pants.Seriously if your somewhat new to this hobby and great sound is what your after seek out some guidence on the forums (audiogon,audio asylum).
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