Kilgore_Trout_Redux
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It is the early adopter premium. wait for 6 months and prices should start looking more reasonable.
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Question of the Day: What is your employer's plan for the 30 June protests?
This Is Madness!
- Thread starter scotty777
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dracolusus
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No, 6 odd years ago, good ol' Trevor stated that he is removing the tax (import tax?) on all PC hardware in the interest of building our nation technologically...Guess what? We never saw it? why? Was it the fact that it was never implimented? Nope...was the ****'ing importers and distributers that took it and pocketed. I have been wanting to drive a stand against this bull****. I remember phoning all the distributors and importers and asking wtf the prices were so high... They said it was TAXES (bull), import duties (meh) and shipping costs. Shipping costs that was the bulk of it.
My question to them was, firstly the tax was removed, it was gazetted. Secondly, how can it cost more to ship a 1000 of them, when it costs me with import duties and shipping, LESS buying from a RETAIL store, not the manufacturer in BULK! They had no reply...
dudewotevr
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Your intentions are good, no doubt!
But realistically?
The moment a consumer revolution happens in SA I'll eat my hat (well first I'll have to buy one, but you get my point).
What are "you" going to use as leverage against all the businesses? Are you telling me a large enough percentage of the consumer population in SA are going to ACTUALLY boycott and refuse to buy a large enough quantity of goods over an extended period of time so as to FORCE them to lower their prices and alter their business practises? ..I highly doubt it
A lot of the time shipping is a nightmare and you end up round about the same amount if not much more due to import duties, taxes and shipping.
Some items and methods can be worthwhile tho.
By nature business looks to make maximum profit, it is not a socially aware entity, and answerable only to the shareholders..
However it's not all doom n gloom, there are a FEW decent people out there treading water in the waters of fair markup value, tho mostly at the mercy of the big distributors..
Such is capitalism, such is the west, there is no Utopian system, all are flawed in at least some way.
</rant>
IMO..killadoob
Honorary Master
Customs charge 14% vat and 10% on computer items.
scotty777
...doesn't know
Your intentions are good, no doubt!
But realistically?
The moment a consumer revolution happens in SA I'll eat my hat (well first I'll have to buy one, but you get my point).
What are "you" going to use as leverage against all the businesses? Are you telling me a large enough percentage of the consumer population in SA are going to ACTUALLY boycott and refuse to buy a large enough quantity of goods over an extended period of time so as to FORCE them to lower their prices and alter their business practises? ..I highly doubt it
A lot of the time shipping is a nightmare and you end up round about the same amount if not much more due to import duties, taxes and shipping.
Some items and methods can be worthwhile tho.
By nature business looks to make maximum profit, it is not a socially aware entity, and answerable only to the shareholders..
However it's not all doom n gloom, there are a FEW decent people out there treading water in the waters of fair markup value, tho mostly at the mercy of the big distributors..
Such is capitalism, such is the west, there is no Utopian system, all are flawed in at least some way.
</rant>
So what you really trying to say is that what they doing is wrong, and basically legal theft and just making noise and ranting about this bs system is just farting against thunder... surely saying "I disagree with what you doing, but since I can't make a difference then i'll let to slide". is the worst thing possible? I mean, we live in a democracy and freedom of speech is a right that is encouraged...
My question is why hasn't any one made a more public rant about this horrendous prices??? I mean, if one person says paying 150%-200% more then the US is utter BS, more people would think "Hmmm, you know, he does have a point"
However, I don't have the Social back ground to make any sort of stand against this sort of thing (i'm not 18 yet... lol
). the computer market must be laughing at us.... I mean, the sheer profits they must be marking off a submissive population must be tremendous! Sigh, they need not use lube anymore, my a$$ is already stretched enough for them to just shaft me right up my naught 
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dudewotevr
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"freedom of speech is a right that is encouraged... " - Really!?, ..huh.. I must have a different view of politicians and the rest of their ilk. I was kind of under the impression that they generally don't give a crap.. heh.. oh well..
Well, um, ..I think you're reading way too much into what I said, ..I was just explaining the way I see it, I'm not running for a cabinet seat or anything, or whatever the terminology is.. I forget..
Yes it probably is the equivalent of a fart, but whatever, I'm not stressed or anything, just my opinion.
Say a bunch of people do make a big noise and a few websites or article publish an article or two, ..what is going to happen next? Will all the evil doers suddenly be like, Oh you guys , duh, *slaps head* I'm sorry y'all! That's so harsh of me, you know! I didn't even realise i was doing it! Ugh i could kick myself i feel ilke such a fool, ..hey! Here's a free mouse pad, and I promise I won't do it again!!!
Dude! ..???? What has age got do do with an educated opinion!? Granted if you were 12-13 I'd be skeptical. 18!? What are you trying to tell me you're "still just a kid".. You're an adult man, ..operative word being: MAN, ...man.
But if by that you mean you're just haven't payed attention cos it doesn't interest you and are therefore generally ignorant to the workings of particular aspects of the world, then hey, that's coo..
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scotty777
...doesn't know
"freedom of speech is a right that is encouraged... " - Really!?, ..huh.. I must have a different view of politicians and the rest of their ilk. I was kind of under the impression that they generally don't give a crap.. heh.. oh well..
Well, um, ..I think you're reading way too much into what I said, ..I was just explaining the way I see it, I'm not running for a cabinet seat or anything, or whatever the terminology is.. I forget..
Yes it probably is the equivalent of a fart, but whatever, I'm not stressed or anything, just my opinion.
Say a bunch of people do make a big noise and a few websites or article publish an article or two, ..what is going to happen next? Will all the evil doers suddenly be like, Oh you guys , duh, *slaps head* I'm sorry y'all! That's so harsh of me, you know! I didn't even realise i was doing it! Ugh i could kick myself i feel ilke such a fool, ..hey! Here's a free mouse pad, and I promise I won't do it again!!!
Dude! ..???? What has age got do do with an educated opinion!? Granted if you were 12-13 I'd be skeptical. 18!? What are you trying to tell me you're "still just a kid".. You're an adult man, ..operative word being: MAN, ...man.
No, i'm not implying that, I'm just saying maybe if we actually decided no, **** this and more noise, it would be FAARRRR better then saying "oh well, **** it, they gonna shaft us anyway, so why care". I'm sure it wouldn't change anything, but at least you can say to did something and didn't just support the misplaced(or non-existent) morals that seem to be infecting, festering, fingering and ****ing up South Africa....
I really this it's disappointing that the guys importing and selling these parts are able to pull the wool over every ones eyes, over charge the ***** out of everything, and people still walk out computer stores thinking "what a good deal". Honestly, this is the perfect crime, because they coining in of the ignorance and laziness of the populous.
dudewotevr
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Yeee, I know what you're saying, makes for a happier, easier life to chilled about stuff IMO, ..works for me.
What can I say, it's just the way of the world.
Doesn't mean a good rant is out of the question now then.
scotty777
...doesn't know
Yeee, I know what you're saying, makes for a happier, easier life to chilled about stuff IMO, ..works for me.
What can I say, it's just the way of the world.
Doesn't mean a good rant is out of the question now then.
I know what you mean, but in cases such as these I think it's just right to use excessive swearing and what not...
You have raised a point though, why should the world be like that though? I mean, why do people always fall prey to the sins of greed/avarice. Surely people should have a conscience which tells them that maybe milking the system won't benefit others. It seems like there's a global culture of me-ism where it's **** everyone, I'm here to sap the shyte out of whats available.
The world may have become a global village, but people are becoming more selfish at the same time...
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 bussiness).
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
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 bussiness).
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
scotty777
...doesn't know
So what you trying to say is that Rectron aren't marking up heavily, but then if that is the case, then who is shafting us?
dudewotevr
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Has the world ever been a Utopia?
Quote me one era when harmony and bliss reigned supreme?
People always tend to look back with a mistakenly rosy view.
It's just human nature man, pure and simple.
Conscience is also a very subjective thing. What is acceptable and "right" varies wildly from person to person in many cases, culture to culture even.
scotty777
...doesn't know
ok, point proven, I'm going back into my hole and pulling the rock over my head...
That is a good question. Fact is that there are places that are cheaper than Rectron. Another fact is that a LOT of IT companies that I know have stopped selling hardware - the margins are simply too low to make it worthwhile unless you ship large volumes. Online margins are around 8-15%, brick shops 10-100%. Sell to government and its 2%....
A big factor is the R/$ rate. This has increased prices by around 30% to the end user.
So, who is shafting us?? Perhaps nobody - maybe its just the price of things? Perhaps its the manufacturer? I'm only sure that its not the reseller; and I'm pretty sure its not the distis.
The question is why does writing this make me feel like watching Reservoir Dogs??
scotty777
...doesn't know
but surely, no one can justify close to 200% more the what the US pay???
Its complicated....
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....
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....