Anyone pre-ordering graphics cards? Or, do you prefer to buy when there's stock?

[g67575]

every retailer seems obsessed with only taking orders when they have stock. This in turn actually increases demand and makes it go full circle.

This - It really pushes up prices and just causes frustration.

Although I think retailers are genuinely concerned that they won't ever receive sufficient supply for many models, as they probably don't receive word from suppliers about the stock they will have several months in advance.

 

[HRL]

I would have pre ordered if a chance, but every retailer seems obsessed with only taking orders when they have stock. This in turn actually increases demand and makes it go full circle.

Isn’t that simply because they don’t want to commit to too low a price as the costs increase?

Pretty sure someone said OCUK had ended up having to sell a few cards for less than they paid for them at one point.

However, I’d happily put a pre-order in for next gen’s cards now as who knows how much they might be next year!

 

[chrcoluk]

Isn’t that simply because they don’t want to commit to too low a price as the costs increase?

Pretty sure someone said OCUK had ended up having to sell a few cards for less than they paid for them at one point.

However, I’d happily put a pre-order in for next gen’s cards now as who knows how much they might be next year!

Yeah to be fair this is harder for retailers than the PS5 situation, I think the wholesale market is akin to the wild west.

I would still like the FE cards to be pre ordering though.

 

[Psycho Sonny]

Maybe some people aren't as well off as you and can't justify the expense of paying almost double the norm. I'll be waiting and whingeing for as long as it takes or just giving up gaming altogether and getting on with other pursuits

You don't need to be well off to buy a GPU it's less than £1k it's not a Tesla we are buying.

People will easily spend £1k buying both consoles on launch, etc that's £1k alone.

You could have gotten a 3060ti on here for circa £470 had you been waiting and that is more than enough power for 1080p and does well at 1440p too.

£470 was MSRP. People need to understand founders edition are being sold at a loss.

 

[Joxeon]

£470 was MSRP. People need to understand founders edition are being sold at a loss.

I very much doubt the FE cards are sold at a loss.

 

[_Cereal_]

i genuinely dont believe Nvidia would sell something at a loss out of generosity.

 

[g67575]

@Psycho Sonny - Nah, they're not sold at a loss, why would Nvidia so that? I doubt they make much money on the RTX 3060 FE. Perhaps the profit ratio increases a little over time, as production becomes more efficient?

I'm 100% certain the RTX 3080 TI (£1,049) and RTX 3090 (£1,399) Founders Editions are sold at a huge profit, it's gotta be Apple levels of profit on those, at least 100%. But they don't allocate many GPU dies to FEs though, this is what people need to be aware of and is the main reason people struggle to get a good deal.

It's obvious that the profit is huge on the RTX 3090 FE, since it has only approx. 20% more shader units than the RTX 3080, with more VRAM. They just can't produce as many, so people will pay more.

Unfortunately, AMD is not competing on price with their reference models (because they are even rarer), both companies are making too much profit to consider doing that.

 

[Joxeon]

i genuinely dont believe Nvidia would sell something at a loss out of generosity.

Yeah Nvidia certainly isn't a charity, I'd imagine the margin on the top cards are well over 100% and the lower price cards 30-40%

 

[GAC]

£470 was MSRP. People need to understand founders edition are being sold at a loss.

any actual proof of this ? as i be hard press to see nvidia selling anything at a loss.

 

[Psycho Sonny]

I very much doubt the FE cards are sold at a loss.

The lower end ones are for sure.

3080 and below. The 3080ti and 3090 not. But I'd wager the rest are loss leaders.

i genuinely dont believe Nvidia would sell something at a loss out of generosity.

Why not? Amazon and supermarkets do it all the time.

@Psycho Sonny - Nah, they're not sold at a loss, why would Nvidia so that? I doubt they make much money on the RTX 3060 FE. Perhaps the profit ratio increases a little over time, as production becomes more efficient?

I'm 100% certain the RTX 3080 TI (£1,049) and RTX 3090 (£1,399) Founders Editions are sold at a huge profit, it's gotta be Apple levels of profit on those, at least 100%. But they don't allocate many GPU dies to FEs though, this is what people need to be aware of and is the main reason people struggle to get a good deal.

Unfortunately, AMD is not competing on price with their reference models (because they are even rarer), both companies are making too much profit to consider doing that.

It's called a loss leader. It gives them good advertising, it's a PR excercise. Same reason supermarkets and Amazon have loss leaders.

Amazon will sell a book at a loss, less than what they paid for it to drive more business to them than their competitors. It's a very common business tactic.

 

[Psycho Sonny]

any actual proof of this ? as i be hard press to see nvidia selling anything at a loss.

Ask Gibbo. He is the one buying and selling cards he says his deals were sold at cost price. Margin of profit was less than a percentage point or two just to cover costs.

 

[_Cereal_]

Ask Gibbo. He is the one buying and selling cards he says his deals were sold at cost price. Margin of profit was less than a percentage point or two just to cover costs.

But OC doesnt sell FE cards.

 

[Joxeon]

Ask Gibbo. He is the one buying and selling cards he says his deals were sold at cost price. Margin of profit was less than a percentage point or two just to cover costs.

That's OCUKs cost price, you can bet Nvidia are producing cards like the 3060ti for around £100 or less

 

[GAC]

Ask Gibbo. He is the one buying and selling cards he says his deals were sold at cost price. Margin of profit was less than a percentage point or two just to cover costs.

that would be ocuk selling at cost, not nvidia.

 

[Psycho Sonny]

that would be ocuk selling at cost, not nvidia.

The price of their cards is even cheaper. They are selling their cards at £100 cheaper in terms of the 3060ti Vs ocuk.

Unless you believe AIB make more than £100 on a 3060ti.

 

[g67575]

And retailers are the last bit of the supply chain, so generally pick up the least profit. Nvidia is higher up this chain, so should take a bigger slice of profit.

 

[Psycho Sonny]

That's OCUKs cost price, you can bet Nvidia are producing cards like the 3060ti for around £100 or less

Are you including R&D costs or simply manufacturing? Are you including transport costs? You do understand the cost of freight has more than tripled in the past year.

 

[_Cereal_]

you are assuming manufacturing a 3060TI costs 360 quid to begin with.

 

[Psycho Sonny]

And retailers are the last bit of the chain, so generally pick up the least profit. Nvidia is higher up this chain, so should take a bigger slice of profit.

But the retailer in this instance is selling for £100 more than FE and at cost. So now you know how much AIB make on their mark up.

AIB is charging £100 more than FE so they will be making at best £10-£15 per card.

 

[Psycho Sonny]

you are assuming manufacturing a 3060TI costs 360 quid to begin with.

No. I am thinking of R&D and transport costs. Things like shipping has more than tripled on containers coming from China in the past year alone.

Also taking inflation, etc, etc. Founder's editions are far too cheap at the 3080 and below. They are likley now being sold at a loss because they simply have to. Why do you think less and less stock is being allocated to them?

Because they make nothing on them.