killerbyte
Expert Member
Air freight is very expensive. 2 months on the open ocean is much cheaper.If as I suspect, the devices may very well come in via air frieght, and batteries are a hassle - so easier to not include them.
South Africa’s biggest forum. Discuss, discover, and connect with thousands of members.
Air freight is very expensive. 2 months on the open ocean is much cheaper.If as I suspect, the devices may very well come in via air frieght, and batteries are a hassle - so easier to not include them.
Air freight is very expensive. 2 months on the open ocean is much cheaper.
Depends - 2 months at sea, 4 - 6 months to get it cleared thru Durban
I've never ever seen those sort of time frames - even with the backlogsSo you have paid for an item, and it is 8 months before you get hold of it
Our logistics team won't let stuff sit at the port for more than a few days.Depends - 2 months at sea, 4 - 6 months to get it cleared thru Durban, depending on the current backlog there.
So you have paid for an item, and it is 8 months before you get hold of it, and can start distributing it. With Air Frieght in the same time, you could have moved 6 shipments, and be taking possession of the 7th. You making money, or you wanking ...
While your money is "in transit" it is not even earning you interest.
I've never ever seen those sort of time frames - even with the backlogs
In fact, very often the difference in arrival between air vs sea is only around 1-2 months.
So R1,225.00 and you get your product February 2023 - or R1,000.00 and get it April 2023. And with something like an Android TV box the price is huge factor because there is so much competition where everyone is playing within R100.00 of each other.
I've been in IT distribution for 15+ years selling a variety of goods from a number of different countries - and I'm pretty sure killabyte works there currentlyLike I said, depends ...
And every one has the same logistics problems.
And if the margins where that small, it would not be a worthwhile market.
Our logistics team won't let stuff sit at the port for more than a few days.
As Dobly just said... its a price sensitive market sector, costs matter. Margins are tight on everything in the tech sector, so every Rand matters.
Well no - like I said the difference is no where near as large as you mentioned between ocean & air.and losing sales, because your stock is in transit, is losing you Rands ...
I've been in IT distribution for 15+ years selling a variety of goods from a number of different countries - and I'm pretty sure killabyte works there currently
Just because a product has small margins, doesn't mean it's not a worthwhile market if there is volume.
When a device gets sold for R899.00 vs the normal R1500.00 they still making a profit, even if it is R5.00, vs the normal R700.00. They are not selling below cost, that is for damn sure. Volume counts, yes.
But there is no brand loyalty in the sector, as there is in TV's like - Samsung vs LG.
You out of stock, the next brand in line gets bought, and you lose. That loss is bigger than the Rand or two you save, on the transit.
If you want to save - you have to maintain a fine balance between the transit, and you better not run out of stock - you cannot sell what you do not have.
Well no - like I said the difference is no where near as large as you mentioned between ocean & air.
But aside from that, the selling price is pretty much fixed in consumer electronics markets because of the competition. You all have to pretty close - otherwise there aren't going to be sales. With air, you'll need to cut into your (already) tight margin to make sales. A Nova probably won't sell well at R2,000 ....
Your options are :
Air (expensive) and maintaining the margin you want - and sell a R2,000 Nova (which won't sell)
Air (expensive) and absorb the extra costs - and sell a R1,500 Nova
Ocean (cheap) and maintain the margin you want - and sell at R1,400 Nova
Your profit margin is not 3 1/2 - 5 %, that is - it is around 35 / 40 % which is decent. In other sectors the profit can be 100% or higher.
But still - it is a rough balancing act. Depends on the commodity
Cool![]()
Well emulation for ps2 and ps oneThen there is the always advancing technology.
There is an ever increasing bunch of people crying for streaming boxes with 4 and 8 Gig's of RAM, 32 - 64 Gigs of storage. I don't see the advantage of these "wants" but these people are creating a expectation and a perception that this is required. If you want a gaming console, got buy a Xbox or PS5, but yeah ...
This crowd is starting to get a ever growing section of the market to question the value proposition of current boxes.
Not a week goes by, without someone asking when a new bigger, faster, better Shield TV Pro, is going to come out.
At this stage, the only "wish", I have, is that my Shield TV Pro, would get official AV1 support, not that this is an issue.
Air, is not that much more expensive for small light weight devices, they are not bringing in a 100 000 a week. But be that as it may be. If you can keep, the supply line full and flowing via sea. Then good and well. The sea route has higher, risks, the back log, then port strike, and storms, can and do cause breaks in your supply chain - if you can ride those out, fine. You cannot, then your losses start adding up, fast. It is a rough game.
Well emulation for ps2 and ps one
Then there is the always advancing technology.
There is an ever increasing bunch of people crying for streaming boxes with 4 and 8 Gig's of RAM, 32 - 64 Gigs of storage. I don't see the advantage of these "wants" but these people are creating a expectation and a perception that this is required. If you want a gaming console, got buy a Xbox or PS5, but yeah ...
This crowd is starting to get a ever growing section of the market to question the value proposition of current boxes.
Not a week goes by, without someone asking when a new bigger, faster, better Shield TV Pro, is going to come out.
At this stage, the only "wish", I have, is that my Shield TV Pro, would get official AV1 support, not that this is an issue. It is a "wish", not a "want".
Air, is not that much more expensive for small light weight devices, they are not bringing in a 100 000 a week. But be that as it may be. If you can keep, the supply line full and flowing via sea. Then good and well. The sea route has higher, risks, the back log, then port strike, and storms, can and do cause breaks in your supply chain - if you can ride those out, fine. You cannot, then your losses start adding up, fast. It is a rough game.
People do strange things and I've done it on TV boxes, ps1 works really wellCan you explain to me, why people buy a streaming box, and then want to make it a gaming console, and then trash the streaming box, because it does not a good gaming console make.
Not even Sony supports PS1 and PS2 on their hardware any more - but people are demanding it for a streaming box.
On the other hand, I don't understand people who buy a PS5 and use it mostly to stream Netflix, and seldom play a game on it. And I know a few.
People's![]()
All I’m saying is that I’ve done this for 15 years. I’ve dealt with the factories abroad. I’ve dealt with the local authorities. I’ve dealt with customs. I’ve dealt with B2B and B2C products. I’ve dealt with margins & pricing. I’ve dealt with logistics. I’ve brought in from various countries.
I know this game quite well
I don’t particularly want to argue over distribution