Deleted member 87287
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GPU prices go boom
- Thread starter RavenXXX2
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That was a good price for 1080Ti (£629) I think going back to last year the lowest then was £599 for blower option.
If Gibbo "knew" when the pound was going to rise or fall, he wouldn't need to sell graphics cards
Deleted member 87287
Deleted member 87287
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If Gibbo "knew" when the pound was going to rise or fall, he wouldn't need to sell graphics cards
How does everyone else do it? Gibbo has been around the block a number of times to know
Not all of the Pascal cards were on sale before 23rd June 2016
I should have said the RXT cards.
A great sales\buyer person would pre-order when the pound was high
We move our pricing with channel price, so even if I happen to have some stock I own at a 1.40 rate, it is re-valued to 1.30 rate, thats a good buyer right there, making more margin on his old stock.
But then when the whole channel has moved up, we will then maybe play our cards by doing a one day special or week special on a product we have a big cost advantage on due to been old dollar stock and paid for to shock the market, gain some traction, free marketing and pump some big volumes out, alternatively if the sales remain strong because our pricing is competitive and we have more margin and re-supply is vastly more then from a business perspective it makes sense just to leave it.
On the flip side when it moves the opposite direction, we also have to eventually move reducing margin or even sell at a loss, so any chance to make additional margin is taken, it is how over time we keep a decent average.
If we had 50% margin on components, then we could simply never change our pricing no matter how weak the pound got, but as component margin is typical under 10% when times are good and lower when times are bad, then any opportunity to turn say 6% into 12% is always taken.
If Gibbo "knew" when the pound was going to rise or fall, he wouldn't need to sell graphics cards
This I'd just be playing the exchange markets, fortunately we leave that to finance if they decide to buy a few million dollars when pound is strong, but no one has a crystal ball and its easy to lose big money as it is to make it.
But if I was this great buy and able to predict exchange rates, well I'd not be working here buying components, I'd be a trader on the forex and a multi millionaire living a live of luxury out at sea.
We buy dollars, pounds and Euro’s when they peak and bank them all the time , it’s just good business.
It blows my mind that any business that has a high purchase rate overseas wouldn’t do the same, it seems insane. Even when you’ve got bonded stock it still makes sense.
I don’t know how stocking works in the industry though, perhaps literally every supplier does indeed charge on sale. Perhaps margins are in rebate rather than sales profit for some lines, directly in line with currency comparison. Who knows.
But purchasing currency when it peaks is a very common practice, even for smaller businesses.
It blows my mind that any business that has a high purchase rate overseas wouldn’t do the same, it seems insane. Even when you’ve got bonded stock it still makes sense.
I don’t know how stocking works in the industry though, perhaps literally every supplier does indeed charge on sale. Perhaps margins are in rebate rather than sales profit for some lines, directly in line with currency comparison. Who knows.
But purchasing currency when it peaks is a very common practice, even for smaller businesses.
We move our pricing with channel price, so even if I happen to have some stock I own at a 1.40 rate, it is re-valued to 1.30 rate, thats a good buyer right there, making more margin on his old stock.
But then when the whole channel has moved up, we will then maybe play our cards by doing a one day special or week special on a product we have a big cost advantage on due to been old dollar stock and paid for to shock the market, gain some traction, free marketing and pump some big volumes out, alternatively if the sales remain strong because our pricing is competitive and we have more margin and re-supply is vastly more then from a business perspective it makes sense just to leave it.
On the flip side when it moves the opposite direction, we also have to eventually move reducing margin or even sell at a loss, so any chance to make additional margin is taken, it is how over time we keep a decent average.
If we had 50% margin on components, then we could simply never change our pricing no matter how weak the pound got, but as component margin is typical under 10% when times are good and lower when times are bad, then any opportunity to turn say 6% into 12% is always taken.
@Gibbo
I remember the days we waited with batted breath for you to announce your deals.
Just one more time for the RTX 2080
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One thing that should irk us, but doesn't seem to have been mentioned, is how the % increase for the lower end cards is going to be much less than the % increase for the top end cards.
This is not necessary, and is purely milking. Improving each card by the same % would still increase the performance delta between them (like stretching an elastic band).
By improving the lower end cards less - even in terms of % increases - they are deliberately stagnating the lower end. Not just increasing the delta to the upper end cards, but actively seeking not to improve perf at the lower end, if they can help it.
So the 2080 gets +50% (of a 1080)
The 2070 gets +40% (of a 1070)
The 2060 gets +27% (of a 1060)
It's absolutely vile behaviour.
This is not necessary, and is purely milking. Improving each card by the same % would still increase the performance delta between them (like stretching an elastic band).
By improving the lower end cards less - even in terms of % increases - they are deliberately stagnating the lower end. Not just increasing the delta to the upper end cards, but actively seeking not to improve perf at the lower end, if they can help it.
So the 2080 gets +50% (of a 1080)
The 2070 gets +40% (of a 1070)
The 2060 gets +27% (of a 1060)
It's absolutely vile behaviour.
Do we know these figures are set in stone yet?
I suppose it depends doesn’t it, I mean if true a 30% improvement over the 1060 sounds pretty good for someone upgrade from say, the 9 series cards. I believe the incentive for people from the 10 series is not only to upgrade, but to go for a higher tier card.
I’ve never thought lower end cards were a good buy anyway, and I do not understand people saying ‘xyz is a 1440p card, it’s way overkill for 1080p’. Really? What nonsense. It’s about longevity. My now single 980 still does great at 1200p. Had I gotten a lower end card it would really be showing it’s age by now.
If the 2080 and 2070 come out in the next couple of months it'll be interesting to see what AMD do in response. I assume they have nothing ready and so will be forced to cut prices of the Vega 56 & 64. The Polaris cards will probably remain as they are for a while since I doubt the 2060 will be released until Christmas time.
But if the 1080 gets a +50% boost, why shouldn't the 1050/1060 get a +50% boost?
2080*1.5 is still more of an improvement in absolute terms than 1050*1.5.
So even if the % improvement was the same across the range, the top end cards would still open up an increased gap to the mid/low end.
So actually deliberately giving less of a % improvement to the low end cards means that the top end now pulls away pretty much exponentially.
And the low end cards are being intentionally stagnated, for no technological reason at all. Just greed.
e: I agree that "xxx is overkill for 1080p" is nonsense.
But I disagree that the low/mid end were never good value for money. The HD 7850 and the GTX 460 were some of the best value cards ever released, across all the ranges.
Wow...A great sales\buyer person would pre-order when the pound was high
Even Warren Buffet Isn't that good! No one can accurately predict currency flux. It's the most variable and unstable of any market. Sure, people have a go at it with play money. But there are an infinite amount of variables at play. How can you possibly expect Gibbo to gamble his job on playing the most unstable of all the markets. He would be as well taking the OCUK bank balance down to the track and telling the Directors he put it all on "princess pony" because he had a good feeling about it.
Like I say, I don’t think the figures are official, unless I’ve missed something? I’m not arguing though, I do agree; it’s not right or fair, but it does make sense from a business perspective. And I suppose I’m less fussed as it’s not the end of the table I tend to buy from. Ultimately a selfish and short-sighted viewpoint.
I suppose my argument, albeit a weak one, is that the more expensive cards deserve a bigger boost. For two reasons; a) any less wouldn’t be enticing, or worthwhile. And b) people who’re paying the most will fee more gratified if they’re receiving the bigger boost.
I’d wager that if we watched the market trends people who bought from the lower end are far less likely to buy the same tier card in the next generation; they’re either too prudent or lack the capital. So the target market is probably people with older cards; the gains are enough to entice whilst still maintaining a cracking margin. Plus the improvement is more than good enough to make AMD product at any tier the poor choice. By the time AMD re-enters the space most people will have upgraded already. And as I said before, they’re probably the least likely to upgrade again any time soon. All conjecture though, I’d be interested to see some figures; not that I can be arsed to find them.
That’s the point though isn’t it. If they’re delineating the Titan and making the ti the top end as I suspect, it makes sense. Top tier is where the great big dirty margins are. But yup, Nvidia are money grubbing scum, no denying it.
Glad you agree, it baffles me and I see said nonsense offered to people looking for advice far too often.
I wasn’t looking that far back, but you’re right; cracking cards. I don’t think we had the choice back then though. We have a breadth of resolutions and formats now that we’ve never enjoyed before, and I can’t remember a time that there’s been such a leap from the standard (ie. 1080p) to the almost mainstream cutting edge (4K). The difference in horsepower demand is staggering. That’s without considering high refresh rate demand. I suppose I should have said for the last few generations; would’ve made more sense. There’s a gap in my knowledge though, I moved away from gaming for a while, and first returned to console for quite some time before I saw the light (once again).
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