GPU prices

Dave M · 24 Jun 2016 at 12:18

Legend said:
When exchange rate was in the mid 1.20's earlier this year did we see such price rises?? !

I think you're confusing USD with EUR - the dollar rate hasn't been below $1.40 for any period of time all year. Our expectations were a floor of 1.43 before all this, the rate is currently just below 1.37, if you know what margins are like in this industry you'd realise that's a serious gap!

MyBrainz · 24 Jun 2016 at 12:19

Dave M said:
I don't think you understand, the vast majority of purchases are priced in USD and we do not carry months and months of stock - so for popular lines we haven't even paid for them yet and when we do, we'll be subject to the market rate on dollars - which atm stinks!

I guess you purchase on 'tick' then..

Mobo has gona back down in a matter of minutes.. 6700K is still £304.49 from £290? yesterday > https://www.overclockers.co.uk/inte...ocket-lga1151-processor-retail-cp-581-in.html

faceman123 · 24 Jun 2016 at 12:19

If they've marked prices up I'll go elsewhere

Dave M · 24 Jun 2016 at 12:20

SS-89 said:
Disappointing. Tbh I find it hard to believe that your finance teams woudn't have had forward exchange futures in place to hedge against adverse exchange movements.

Me thinks you need better people running the numbers.

Buy a million dollars at 1.43 and you lose if the remain vote won - the rate went to 1.50 last night before the first leave results started coming in.

It's a zero sum game - unless you back the right horse!

Dicehunter · 24 Jun 2016 at 12:21

dits said:
Shocking that Overclockers have marked up most GPUs after the EU vote

Putting prices up on items already in stock is beyond greedy IMO.

I could understand new stock coming in later on but right now is just ludicrous.

B1gbeard · 24 Jun 2016 at 12:22

Dave M said:
Buy a million dollars at 1.43 and you lose if the remain vote won - the rate went to 1.50 last night before the first leave results started coming in.

It's a zero sum game - unless you back the right horse!

I think the issue is that you have immediately made increases hours after the decision. I'm sure you could have waited a bit to see if things settle down.

dits · 24 Jun 2016 at 12:23

what suprises me is that other retailers haven't yoyo'd their prices since this morning like Overclockers have done.

Dave M · 24 Jun 2016 at 12:23

MyBrains said:
I guess you purchase on 'tick' then..

Mobo has gona back down in a matter of minutes.. 6700K is still £304.49 from £290? yesterday > https://www.overclockers.co.uk/inte...ocket-lga1151-processor-retail-cp-581-in.html

Sorry but CPUs have almost no margin in them, so we couldn't maintain old pricing without making a large loss on every unit. I imagine Gibbo will review them in detail when he's back in the office this afternoon.

McGraw · 24 Jun 2016 at 12:25

Dave M said:
I think you're confusing USD with EUR - the dollar rate hasn't been below $1.40 for any period of time all year. Our expectations were a floor of 1.43 before all this, the rate is currently just below 1.37, if you know what margins are like in this industry you'd realise that's a serious gap!

Plus shipping costs from China and US are in USD so even more potential to lose margin.

For the record I've only ever had to buy one component away from overclockers in the last 10 years...my 4790k was £240 vs oc £280. Can't be that loyal.

MyBrainz · 24 Jun 2016 at 12:26

dits said:
what suprises me is that other retailers haven't yoyo'd their prices since this morning like Overclockers have done.

Dave M said:
Sorry but CPUs have almost no margin in them, so we couldn't maintain old pricing without making a large loss on every unit. I imagine Gibbo will review them in detail when he's back in the office this afternoon.

If things dont change i'll be looking elsewhere, i even live in stoke on trent and will probably find cheaper with delivery on top than to take a trip to your shop.. thats how bad this is looking for OcUK right now.

Paul N · 24 Jun 2016 at 12:26

So if we stayed in and sterling went through the roof, the prices would have gone down? :rolleyes:

Suuuuuure

dits · 24 Jun 2016 at 12:26

Dave M said:
Sorry but CPUs have almost no margin in them, so we couldn't maintain old pricing without making a large loss on every unit. I imagine Gibbo will review them in detail when he's back in the office this afternoon.

Your Samsung Evo 850 250Gb is £14 more than the cheapest national competitor.

Dicehunter · 24 Jun 2016 at 12:27

dits said:
what suprises me is that other retailers haven't yoyo'd their prices since this morning like Overclockers have done.

OCUK AFAIK have the largest customer base out of all the e-tailers of PC parts so it's only a smart business move to try and grab a few more pennies, Scrooge like but smart non the less.

Legend · 24 Jun 2016 at 12:28

B1gbeard said:
I think the issue is that you have immediately made increases hours after the decision. I'm sure you could have waited a bit to see if things settle down.

Exactly. And they WILL settle down, as they always do. It's not so much what they've done, it's the SPEED at which they've done it. Shameless.

.Trooper. · 24 Jun 2016 at 12:29

A 6600K can be had for almost £20 less at competitors ATM. I know margins are important but do you not give two ***** about competition?

dits · 24 Jun 2016 at 12:30

Dicehunter said:
OCUK AFAIK have the largest customer base out of all the e-tailers of PC parts so it's only a smart business move to try and grab a few more pennies, Scrooge like but smart non the less.

Up a pound and down a penny. A right royal rip off of loyal customers.

Gibbo · 24 Jun 2016 at 12:31

Dave M said:
Sorry but CPUs have almost no margin in them, so we couldn't maintain old pricing without making a large loss on every unit. I imagine Gibbo will review them in detail when he's back in the office this afternoon.

This I am on the way put me a bottle of the whisky on my desk I'm gonna need a top up after Amsterdam.

I will sort prices guys so bear with us. Not a lot I can do when 24,000 feet high in the sky with no internet.

.Trooper. · 24 Jun 2016 at 12:31

Dicehunter said:
OCUK AFAIK have the largest customer base out of all the e-tailers of PC parts so it's only a smart business move to try and grab a few more pennies, Scrooge like but smart non the less.

I would've thought the rainforest make up a large proportion of PC parts too. Id suspect they're the main competitor actually. The only department they lose in is supply for new items

Dicehunter · 24 Jun 2016 at 12:33

Legend said:
Exactly. And they WILL settle down, as they always do. It's not so much what they've done, it's the SPEED at which they've done it. Shameless.

Although I don't agree with OCUK's behaviour we have to remember it's a business and not a charity, Money making is the name of the game.

dits · 24 Jun 2016 at 12:36

Dicehunter said:
Although I don't agree with OCUK's behaviour we have to remember it's a business and not a charity, Money making is the name of the game.

It's customer loyalty which make it the business that it is today.