It really is the suppliers!!

P

Pablo

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Just got a quote for a Radeon 5850 from axiz for 2810 excl vat! So it's defiantly not the retailers.
 
There is hardly anything to be made in being a small-scale reseller. The only way to really make money off hardware is to have a store. Which in turn requires one to pay the rent. This rent has to come from hardware sales to profit margins have to be high. So blame the commercial property owners as well. :)
 
Haven't actually got my 4890 yet as my mobo is broke and pczone lines ridiculously long, think i should hold tight for a 5850?
 
TheRift said:
There is hardly anything to be made in being a small-scale reseller. The only way to really make money off hardware is to have a store. Which in turn requires one to pay the rent. This rent has to come from hardware sales to profit margins have to be high. So blame the commercial property owners as well. :)
Click to expand...

Nah...just blame the suppliers instead:D
 
KiLLa007 said:
Haven't actually got my 4890 yet as my mobo is broke and pczone lines ridiculously long, think i should hold tight for a 5850?
Click to expand...

Yup......I saw a 5870 for R3900 somewhere in SA :p:D:D:D

EDIT: 4000 posts...woohoo :p
 
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Yes guys. Its the retailers; average markup on government box dropping is 2%. Online is 2-15% depending on the item. If you can find a standard price at a supplier cheaper than PC Zone then I will buy the item for you....
 
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Conradl said:
Yes guys. Its the retailers; average markup on government box dropping is 2%. Online is 2-15% depending on the item. If you can find a standard price at a supplier cheaper than PC Zone then I will buy the item for you....
Click to expand...

PC Zone sells some items at almost Distributor cost prices
 
Of course it's the suppliers! Sigh, personally, I think we as the consumers should put pressure on the shops, you should put pressure on the suppliers. How the fark is South Africa meant to catch up to the 21st century, when the suppliers of computer hardware are basically ripping us the fark off...

If AMD says the Recommended price is Rxxxx, then I demand that price or lower.
 
How can there be a "normal" price when this thing has only just bloody launched?
 
OK so I have taken this from my previous post regarding the high prices of Hardware when compared to the US. The only logical conclusion I could draw is that the manufacturer cannot be ruled out as a cause:

If you look at Mustek's financials, they are one of two listed companies I could find it is quite interesting. Breakdown for 2008 below:

Earnings (Everything they sold): R3.4 billion
Cost of sales (how much they paid to buy the stock): R2.8 billion

This is a 21% markup making R564 000 000 Gross profit (before expenses).

Distribution, operations and other expenses was R420 000 000. (The costs of running their business).

This leaves R133 000 000 million profit before tax and R87 000 000 after tax.

Then look at Rectron, a division, and the company relevant here: Figures are for six months:

Revenue: R671 000 000
Gross Profit: R25 000 000
Profit after tax: R10 000 000

So why do we pay 200% more than the US?

Lets say that newegg.com sells a device for $100. They probably buy in large quantities, make deals with the manufactures, and get a huge discount. They then mark up by a few % (like Walmart), and sell massive amounts to make money.

So where newegg buys 10 000, rectron buys 20. (literally, Asus Xonar cards, they buy FIVE at a time!). So they don't get a big manufacturer discount. So lets say they pay $100. Then they need to buy forward cover for FOREX, thats 2%. So currently that would be R10.20 to the dollar - R1020. We know that they mark it up by 21%.

Thats now R1213, 10% markup of the Reseller @ 10% = R1357. Add VAT @ 14% and the end user pays around R1600.

But why 200% you ask?

Start at the top: the end user pays R3000 - 14% VAT - 10% reseller, - 21% disti markup. Divide that by R10.20/$ and you get around $180 dollars that the manufacturer charges.

Remember that the manufactures are at the mercy of large suppliers (newegg/Walmart etc), and with smaller players such as Rectron they bargain hard to make up for losses.

Unfortunately cannot rule out the manufacturer as a possible reason for high prices....
 
Conradl said:
OK so I have taken this from my previous post regarding the high prices of Hardware when compared to the US. The only logical conclusion I could draw is that the manufacturer cannot be ruled out as a cause:

If you look at Mustek's financials, they are one of two listed companies I could find it is quite interesting. Breakdown for 2008 below:

Earnings (Everything they sold): R3.4 billion
Cost of sales (how much they paid to buy the stock): R2.8 billion

This is a 21% markup making R564 000 000 Gross profit (before expenses).

Distribution, operations and other expenses was R420 000 000. (The costs of running their business).

This leaves R133 000 000 million profit before tax and R87 000 000 after tax.

Then look at Rectron, a division, and the company relevant here: Figures are for six months:

Revenue: R671 000 000
Gross Profit: R25 000 000
Profit after tax: R10 000 000

So why do we pay 200% more than the US?

Lets say that newegg.com sells a device for $100. They probably buy in large quantities, make deals with the manufactures, and get a huge discount. They then mark up by a few % (like Walmart), and sell massive amounts to make money.

So where newegg buys 10 000, rectron buys 20. (literally, Asus Xonar cards, they buy FIVE at a time!). So they don't get a big manufacturer discount. So lets say they pay $100. Then they need to buy forward cover for FOREX, thats 2%. So currently that would be R10.20 to the dollar - R1020. We know that they mark it up by 21%.

Thats now R1213, 10% markup of the Reseller @ 10% = R1357. Add VAT @ 14% and the end user pays around R1600.

But why 200% you ask?

Start at the top: the end user pays R3000 - 14% VAT - 10% reseller, - 21% disti markup. Divide that by R10.20/$ and you get around $180 dollars that the manufacturer charges.

Remember that the manufactures are at the mercy of large suppliers (newegg/Walmart etc), and with smaller players such as Rectron they bargain hard to make up for losses.

Unfortunately cannot rule out the manufacturer as a possible reason for high prices....
Click to expand...

Lets do a simple calculation here:

AMD HD5870 = $400

in South Africa lets assume it's R4000,

now, if we divide R4000 by 8 (to convert to $) we get $500, that's $100 more then the US, hmmm, that's a serious rip off. Honestly, ask how many Americans would pay $500 on a graphics card, and now AMD just assumes that we will be more liberal in handing money over? I don't think this is fair, but I guess it's business.

If we have a look at the cards selling for R5000, we get $625!!! that's more then the big, holy shyte cards that Nvidia sells.
 
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