Another Round of Price Increases ?

Ben @ EVGA · 18 Oct 2016 at 22:13

himen256 said:
I cant find a answers to my questions... Do OC pay for items up front or after the sell... If second why did items from old stock when up in price? Would any respected retailer try to rip customer off just to make a extra buck?

Having worked in the industry for a number of years now I might be able to help here.

The $ rate is usually fixed by the retailor buying the stock in 2 different ways.

1) Fix the dollar rate at time of placing PO to vendor.
2) Fix the dollar rate at the time of the stock landing at the warehouse.

Overclockers work with option 2) here so stock which is bought in USD is booked on the $ rate of that particular day. So today for example might have been 1.21.

As retailors will usually pay many vendors on 30 day terms they would usually try and hold 1 month of stock in buffer however at the moment with Pascal stocks still so fast moving on much of the EVGA VGA this is probably on average only 2 weeks.

Thus at the end of last week many of the EVGA prices you will have seen rise as the new stock landed at the new $ rate of circa 1.20.

In normal trading though retailors in this sector should be able to hold a price increase for 2-3 weeks but then forced to pass this on once new stock lands at the new inferior rate.

Thanks
Ben

abui1806 · 18 Oct 2016 at 22:27

Thanks Ben for the explanation. I was curious about that as well.

himen256 · 18 Oct 2016 at 22:33

Ben @ EVGA said:
Having worked in the industry for a number of years now I might be able to help here.

The $ rate is usually fixed by the retailor buying the stock in 2 different ways.

1) Fix the dollar rate at time of placing PO to vendor.
2) Fix the dollar rate at the time of the stock landing at the warehouse.

Overclockers work with option 2) here so stock which is bought in USD is booked on the $ rate of that particular day. So today for example might have been 1.21.

As retailors will usually pay many vendors on 30 day terms they would usually try and hold 1 month of stock in buffer however at the moment with Pascal stocks still so fast moving on much of the EVGA VGA this is probably on average only 2 weeks.

Thus at the end of last week many of the EVGA prices you will have seen rise as the new stock landed at the new $ rate of circa 1.20.

In normal trading though retailors in this sector should be able to hold a price increase for 2-3 weeks but then forced to pass this on once new stock lands at the new inferior rate.

Thanks
Ben

Thank you it was a very good explanation... I did work in retailer but that was more than 10 years ago so my understanding was a bit rusty. I think I will hold off for now if price will not drop till x-mas I will pay then and justified it as my x-mas gift

For now I still have 3 fans to buy and lighting system and those are holding price. One more time thanks for a good answer.

Panos · 18 Oct 2016 at 22:52

himen256 said:
Thank you it was a very good explanation... I did work in retailer but that was more than 10 years ago so my understanding was a bit rusty. I think I will hold off for now if price will not drop till x-mas I will pay then and justified it as my x-mas gift For now I still have 3 fans to buy and lighting system and those are holding price. One more time thanks for a good answer.

You are right. Is October also. Always this month the prices are going up, stay there until the end of November and everything after that is on offer at the prices they were back in August.

However there are elections in the US, along side the December Fed decision if they will raise the interest rates. If they do so, the USD will go up by another few %. However if Trump manages to get elected, the USD will fall.

Don't always say "pound is falling". Because while some % is true, the US economy shows great signs on both growth and customer confidence , hence the USD goes up in relation to all the other currencies.

Drollic · 19 Oct 2016 at 00:08

Quite surprised having just looked - my ftw has jumped up £90 compared to what I paid nearer launch.

Nasher · 19 Oct 2016 at 08:53

TBH I think some retailers are just going to have to be less greedy and take hits to their profits at some point. They can't expect to keep off-loading price hikes on to the customer forever, there will just price themselves out of sales. E.g. There's no way I'd buy a 1080 now, or even a 1070 really.

subbytna · 19 Oct 2016 at 09:39

Nasher said:
TBH I think some retailers are just going to have to be less greedy and take hits to their profits at some point. They can't expect to keep off-loading price hikes on to the customer forever, there will just price themselves out of sales. E.g. There's no way I'd buy a 1080 now, or even a 1070 really.

Yep that's where I'm at too. I'll just hold on with what I have and loko to buy second hand later down the line. I'll let some other mug buy the new tech at inflated prices.

h4rm0ny · 19 Oct 2016 at 13:28

himen256 said:
That not very good, I was hoping to get zotac 1070 three fan model as it was £430 now is £470. Btw: If OC got the graphic card in the warehouse and they pay for them why is their price affected by the price of pound or are they not pay for as of yet only when they are bought by a customer the supplier get the cut?

OCUK get the stock in but don't pay for it until later. Usually 30 to 60 days later, I think. So prices can rise even though they already have the cards.

Also, returned cards become a problem for OCUK if the pound has fallen a lot since they sold it because they have to refund or replace an item that is now worth less than when they sold it.

I would buy now, if you are able. The pound may fall a little further or it may stay where it is (I think it will fall a bit more and then stop), but it will be a long time before it comes back up, in my opinion.

I hope this helps.

dits · 19 Oct 2016 at 14:50

the worrying thing is that retailers are charging various prices for same items. no wonder consumers feel ripped off. OC are charging the Acer X34A Predator £200 more than cheapest competitor. Surely this sort of over the top pricing can't just be due to falling £?

Greebo · 19 Oct 2016 at 15:19

dits said:
the worrying thing is that retailers are charging various prices for same items. no wonder consumers feel ripped off. OC are charging the Acer X34A Predator £200 more than cheapest competitor. Surely this sort of over the top pricing can't just be due to falling £?

its all down to stock issues. We used to see that where i used to work in a haulage company.

We contacted 4 refineries/fuel companies every day for our order of fuel. In a quickly rising market and place which didnt have old stocks and had just got new fuel in was way out on price compared to anywhere with old stocks.

If these other retailers have paid UK stock in, then it would be greedy of them to raise prices based on what they would be now although some do.

Other retailers that have ordered new stock at new prices arent going to sell them at the old prices.

Look at that new LG monitor ocuk has 100 off in stock. Ocuk has it fro £999. Actually price with current exchange rate is going to be over £1400 and thats what you will be able to buy it from elsewhere when they have stock.

Some big companies will have exchange rate currency deals/hedging in place probably up until xmas so they neednt worry about the exchange rate changes until then. Other retailers won't have this facility or perhaps only a month or two which has now expired.

Kaapstad · 19 Oct 2016 at 15:40

dits said:
the worrying thing is that retailers are charging various prices for same items. no wonder consumers feel ripped off. OC are charging the Acer X34A Predator £200 more than cheapest competitor. Surely this sort of over the top pricing can't just be due to falling £?

It is the consumers who got us in this mess in the first place or rather the ones who voted Brexit !!!!

The retailers are having to deal with the mess.

ljt · 19 Oct 2016 at 16:44

Kaapstad said:
It is the consumers who got us in this mess in the first place or rather the ones who voted Brexit !!!!

The retailers are having to deal with the mess.

Being pedantic, but it's currency traders who have caused the £ to lose value not "consumers who voted Brexit"

Nobody knows exactly what our new deal will look like so the traders are getting their knickers in a twist based on pure speculation at the moment, instead of just waiting on the actual hard facts about the deal we end up with and acting accordingly once we actually know.

Wrinkly · 19 Oct 2016 at 17:14

ljt said:
Being pedantic, but it's currency traders who have caused the £ to lose value not "consumers who voted Brexit"

Nobody knows exactly what our new deal will look like so the traders are getting their knickers in a twist based on pure speculation at the moment, instead of just waiting on the actual hard facts about the deal we end up with and acting accordingly once we actually know.

Blaming others for our own mess (again) is not a good excuse. The UK was a profitable safe gateway to EU trade for not just the UK but also other parts of the world. That position will change over the next few years due to the Brexit vote. That is the only reason you are worth less today.

ljt · 19 Oct 2016 at 17:24

Wrinkly said:
That position will change over the next few years due to the Brexit vote.

But nobody knows yet exactly what the position will be. Just wait and see, then deal with it.

Believe it or not but I voted remain, but I'll happily admit I'm sick of what seem to be remain voters doom mongering all the time. None of us know how the negotiations will go other than the people actually going to them. We just need to wait and see and "cross that bridge when we come to it"

Kaapstad · 19 Oct 2016 at 17:43

ljt said:
Being pedantic, but it's currency traders who have caused the £ to lose value not "consumers who voted Brexit"

Nobody knows exactly what our new deal will look like so the traders are getting their knickers in a twist based on pure speculation at the moment, instead of just waiting on the actual hard facts about the deal we end up with and acting accordingly once we actually know.

There is one hard fact the traders do know about, we will not be in the EU.

Not being in the EU is what the traders are reflecting.

How we leave really does not matter to them as all outcomes are bad, just some are worse than others.

It is a bit like dying, being dead is very bad, how you got there really does not matter.

BS Dave · 19 Oct 2016 at 17:48

But nobody knows yet exactly what the position will be. Just wait and see, then deal with it

Nobody knows, but lots of people have a lot more idea than the clueless politicians that lied to a public that was sick to death of being treated like ....

thesnowdog1971 · 19 Oct 2016 at 17:54

Well there shouldn't be any more price increases unless the exchange rate drops to less than 1.20. That was the basis of the first price increases if I remember correctly.

Reality|Bites · 19 Oct 2016 at 18:13

If people just stop bloomin buying at these prices?....You don't realy need it....just stop it...lol....bloomin children wanting things and wanting them NOW! Just stop it and they'll lower the prices to lure us back......it's not rocker science

Reality|Bites · 19 Oct 2016 at 18:15

saying that I'm gutted I never jumped on the cheap...er 980Ti's I keep looking in clearance for one but no cigar yet lol

queeg · 19 Oct 2016 at 18:22

@ kaap "It is a bit like dying, being dead is very bad, how you got there really does not matter." id have to disagree with that going out in bed with a smile on your face or at 120mph in a passenger seat screaming in terror I know which id choose