You are making the cord assembly in China and only inventorying ONE part instead of 3. Also, the molded on ends are MUCH simpler and cheaper to make than ones you attach. There are no screws, and the plastic is molded in one piece, not 2 or 3, with no holes that need to be molded in or drilled for assembly screws. It's simply crimp on the ends, insert them in a jug in the mold, and inject plastic.
So it's cheaper to own an injection molding system and all the supplies and maintenance equipment than to just manufacture the cord itself with no connectors?
PA must have changed their listing methods. They now list their extension in either exact SAE or exact metric. Apparently no dual labeling. Times change, I guess.
You need the injection molding equipment to make the ends to attach to the bulk cord. And you need at least three times as many molds (cap, cover, and retainer) You can usually buy the cable without ends for less than the cable with ends, and virtually ALWAYS can buy the made-upcable forless than the cost of the bulk cable plus ends - which is what I THINK the OP stated.
economies of scale is a term to describe the benefits of producing something on a large scale so that the costs are spread over the many products produced and profits might be small but the number of products sold creates a large profit
this finished cord was all machine made just like the bulk cord the cord end price is reduced to a cost that can also be absorbed via scale
addressing the higher price for bulk cord
most bulk consumers would not think to consider comparing the cost of bulk with finished product so they never know to complain
and most bulk buyers might have an account and they may not give a lot of attention to the price when they purchase in bulk and the price is often not seen until the bookeeper looks at it at some future time
No, I'm not. You responded directly to a question related to making more profit on a cord with ends vs. a bulk cord. I too do not see how, all else being equal (length, quality, wire size, price, etc.) you can make more profit if you are adding injected molded connectors, the metal prongs, etc. as opposed to just selling the bulk cord.
Seeing the OP's last posting, I may have mis-interpreted the original post. I see, by his noting "the ends are cut off" he was saying he bought the made up cord with both ends for less than the cost of just the cable - not what I read from the initial post.
Then it just comes down to the cost of handling/stocking.
Cheaper to stock packaged goods than handle the cutting/measuring/dispensing of bulk product and the high "shrinkage" involved. The 100 ft or 30 meter cord IS what it IS - unlike bulkcord which can be mis-measured, misslabeled, etc
Also, is it actually the same quality cable? The extension cords Home Depot stocks are generally SJTW while the stranded cable they stock is generally SJOOW, which should stand up to a good deal more abuse.
HomeOwnersHub website is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.