Remember the shop at your design school's ID department? You never did see extension cords in sorrier condition than at that place. The problem is the way people (and by people, I mean sophomores) wrap (or don't wrap) them up after projects.
Old-hand shop guys often have their own consistent way to bind cables without kinks. Take a look at the methods favored by Fine Homebuilding's aptly-named Tucker Windover, with text explanations, photos and video.
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http://www.youtube.com/watch?v=JUz266TU9JE