Graphics card prices in SA

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moron51

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Can anyone explain why there's such a big difference between SA and US pricing on graphics cards?
With the R/$ at about 8:1, and remembering to add 14%, you'd expect R2000 to buy you a $200 card. But somehow it doesn't work like that...

One example: Sapphire Radeon 4850 512MB
US prices: $115 - $130 (NewEgg, CompUSA, Amazon)
SA prices: R2050 - R2124 (Sybaritic, Rebeltech, Prophecy)

So your R2000 buys you $125 - an "exchange rate" that's about 50% higher than the actual one. Why??? These things have a high value-to-bulk ratio, so it's not shipping cost. They don't have TV tuners in, so it's not import duty (is it?).

Any ideas?
 
Don't know much about it, but I would say it's a combination of import tax/supplier markup/retailer markup.

We'll always be paying higher prices for our hardware, you just have to look around for specials and good deals.

You can (could, out of stock at the moment) get a force3d 4850 for R1338.08 from prophecy, or even a 4870 for R1982.18, which is not TOO far off US prices.
 
suposedly the so called 'europe tax' for 'us goods' out side its borders :confused:, and obviously mixed in with local greed.
 
Why? Because there are a million first world citizens living in a third world country, that's why. Enough to merit importing your graphics card but not enough to have an issue with the price.
 
This question was asked a while ago; I did some calculations and it turns out that the wholesalers only make around 8% markup, as do some resellers. Not sure why it is so high; but I don't think the wholesalers are responsible. Will try to find the thread....
 
Conradl said:
This question was asked a while ago; I did some calculations and it turns out that the wholesalers only make around 8% markup, as do some resellers. Not sure why it is so high; but I don't think the wholesalers are responsible. Will try to find the thread....
Click to expand...

here you go

that's the thread I started, I don't know why we paying such exorbitant prices
 
Thanks scotty777 - more grist for the mill.
(funny, I searched the forum for existing threads before posting, but didn't find yours)

What prompted me to post was seeing the much smaller difference in LCD monitor prices - here's one example:

Samsung 2333SW
US prices: $219-250 (BuyDig, Amazon, BestBuy)
SA prices: R2130-2362 (Landmark/Ikonic/Sybaritic, RebelTech, Take2)

So while the graphics cards are on a 16-18x multiplier (80-90% above exchange rate plus VAT), LCD monitors (much bigger, heavier = higher freight cost) come in at a less than 10x multiplier (7-8% above exchange rate plus VAT).

Now don't tell me the SA market for LCD monitors is the same size as the US... so there's something odd going on. I don't think that either our web retailers or our distributors are making fat margins, so where's the gap?

One more data point - Intel Core i7 920 CPU's sell at $280 in US web retail, and in SA they're R3130 - about a 22% uplift.

OK people, there seems to be a nice business opportunity here for WantItAll or one of the parallel importers to make themselves VERY popular with local gamers - and still make a profit. How about it, mense?
 
The online guys don't seem to be the ones making massive markups (on GFX anyway) - axiz on sapphires are:

R 1,760.59 Sapphire ATI Radeon D4850 Toxic 512M GDDR3
R 2,141.53 Sapphire ATI Radeon 4850, 1GB GDDR3, 256Bit

Thats ex vat, so R 2,007.07 and R 2,441.34 respectively.
PC equip is pretty expensive at the moment IMO, especially HDD, I get the feeling they are hedging against lower sales & the end of 2008's $:R exchange rates by not cutting prices in parallel to the exchange.

Gamer's are premium buyers and will spend cash on GFX's - businesses don't buy them. I guess they can price what they like as long as they can still move it.
 
How much can we import the g cards for? Can want it all maybe import and resell for us because whole salers are ripping us off with double vat?(when they reach the shops + double mark up!!!) I want to buy a new rig in the next few months for R15K so can I get it from want it all and I want to collect at the post office?Just the parts and I will build it my self.
 
Well I moved to CHina, stuff here are so cheap. and I work for an import & export company so hey...was always thinking of sending a few goods back to my mates.

Anyways there was a thread started by firestar on the prophecy forum that explained very well why the price is much higher.

Go search for it
 
moron51 said:
Thanks scotty777 - more grist for the mill.
(funny, I searched the forum for existing threads before posting, but didn't find yours)

What prompted me to post was seeing the much smaller difference in LCD monitor prices - here's one example:

Samsung 2333SW
US prices: $219-250 (BuyDig, Amazon, BestBuy)
SA prices: R2130-2362 (Landmark/Ikonic/Sybaritic, RebelTech, Take2)

So while the graphics cards are on a 16-18x multiplier (80-90% above exchange rate plus VAT), LCD monitors (much bigger, heavier = higher freight cost) come in at a less than 10x multiplier (7-8% above exchange rate plus VAT).

Now don't tell me the SA market for LCD monitors is the same size as the US... so there's something odd going on. I don't think that either our web retailers or our distributors are making fat margins, so where's the gap?

One more data point - Intel Core i7 920 CPU's sell at $280 in US web retail, and in SA they're R3130 - about a 22% uplift.

OK people, there seems to be a nice business opportunity here for WantItAll or one of the parallel importers to make themselves VERY popular with local gamers - and still make a profit. How about it, mense?
Click to expand...

you maybe saying "wtf" with all these deranged prices... but think back to the days of gr 9 EMS (Business), Supply and Demand...

The reason why the LCD monitors are pretty much the same in South Africa and the US is because:

A) Samsung is in South Africa, they import and sell their products without 3rd party support.

B) the LCD market (and the cpu market even) is much larger then the GFX card market... the only people who would buy graphics cards are your gamers (and there's not many of us in S.A.) thus, the wholesalers only import say 10-20 of these cards, as apposed to importing 100-150 LCD Monitors/CPUs, therefor the prices will be higher...

C) GPUs companies sell there GPUs at a slight premium to countries like SA because of the low demand, and the fact that if we whine at them, they can just stop selling their products here haha
 
I must say there are some decent deals around on graphics cards if you really wanna buy.
Prophecy shop Force3d cards are cheap!
4830 -R1009
4850 -R1338 (out of stock)
4870 -R1982 (512mb)
4870 -R2496 (1024mb)

PC International have a GTX 260 896mb for R2164
 
It doesn't. Not at all. How can a person on their own buy a plane ticket fly to the us buy 10 cards and still come out on top. It's bull****.
 
Did you read the posts? Rectron puts a 21% average markup on (this is a fact), and resellers put between 2% (for government deals), 8-15% web retailers, and 15-100% brick shops. It is therefore logical to assume that SA distis do not enjoy the same levels of discount from the manufacturers, when compared to American companies....
 
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psc said:
Except they are working on overseas retail prices (if you buy large quantities like there Coolermaster example, I doubt they would be paying full retail), also I don't see the current cost of vaseline included anywhere ;) .
Click to expand...

Depends greatly on who you buy from and if you are the connection to buy it from the manufacturer/coolermaster directly or a wholesaler

The pricing on the internet overseas are very competitive, which means their mark up is pretty low already.

Thats why...I'm only gonna send in items for my mates, no one else toehrwise its unfair to the local distributers/retailers
 
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