How cam Morrow Audio keep offering 45%-65% discounts for trade-ups?

Not only that I get weekly emails about sales. Lately titled "Christmas in July".

I’ve done the trade-up a few times, but I’ve got to say, I can’t fathom how they can profit with discounts as huge as those.

Are they selling off used stuff as new?

 Another thing, has anyone dissected a cable to see what's in it?