Do you not get the invoice when you take delivery - so you know the USD cost for them at that time? If it was a large order then if I was your finance D I would be buying the USD required to cover the bill now and locking in the price - why take the market risk, no need.
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Yes the USD cost is fixed, but we pay in GBP 30 days later so book at a rate to try and protect ourselves. As when we pay for goods it could be 1.01 or 1.15 thats gamble so we try to alleviate some of that by booking 2-3 cents below live rate.
Yeah, seems a very strange way to do it
I mean why not just buy the USD today to cover it and lock in the price, or buy it 30 days forward, for the forward contract you would only pay the interest rate diff between the 2 countries for 30 days, which will be virtually nothing.
Seems a strange strategy to me.
That is how our systems book stock, quite common, I've worked at two competitors who used similar methods.
As to when and how goods are paid for is totally upto finance.
For example distribution also re-value stock based on exchange rate, some do it daily, weekly or monthly, the ones selling mainly USD stock, so CPU's, GPU's etc tend to update daily irrelevant of what they booked in at or paid for at, this way they keep with the market trend.
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Soldato
If in stock at time of ordering that is the plan yes.
Sounds like its all hands on deck Wednesday!
Got it - just seems in this case the customer price is not as good as it could be, I would think this would be the priority for you guys to be competitive - although if this is the standard process then maybe all are the same.That is how our systems book stock, quite common, I've worked at two competitors who used similar methods.
As to when and how goods are paid for is totally upto finance.
For example distribution also re-value stock based on exchange rate, some do it daily, weekly or monthly, the ones selling mainly USD stock, so CPU's, GPU's etc tend to update daily irrelevant of what they booked in at or paid for at, this way they keep with the market trend.
So booking in the Zotac at 1.08, when you could buy the USD now at 1.1047 and pass on these savings to the customer.
In the case of a $1800 card, this could save the customer £35 or so.
I have no idea about the sales or procurement industry, my background is in markets trading and so to me this just seems strange - but so be it!
We buy on account, so we pay for goods 30-60 days later, at which point we could be paying at a rate of 1.05 so we should have charged the customer more. Works both ways.
No one pays for goods upfront any more not when buying such large volumes.
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Yeah I get that, but you know how much you are going to have to pay in USD - so you can lock that price now and be protected for any exchange rate changes and guarantee the best price for the customer while protecting yourself from having to pay more.We buy on account, so we pay for goods 30-60 days later, at which point we could be paying at a rate of 1.05 so we should have charged the customer more. Works both ways.
No one pays for goods upfront any more not when buying such large volumes.
Maybe I should get a job in finance for computer parts
I am retired now, but I retired early so still got plenty of time to learn!Yeah I get that, but you know how much you are going to have to pay in USD - so you can lock that price now and be protected for any exchange rate changes and guarantee the best price for the customer while protecting yourself from having to pay more.
Maybe I should get a job in finance for computer parts
Finance decisions, maybe they have or maybe right now there is not the cash on hand to do so. That is an area of the business that is run by them, but all the companies I've worked book stock at a live rate and generally below the live rate. Companies who buy dollars my have a 2M reserve with like a 1.25 rate but they will still book stock at the live rate and make the additional margin as when things go the opposite direction they then need to still remain competitive which could mean selling at a loss. End of the day for a business its about balancing so when good margin times come grab them because there are also times when products are sold at losses.
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Yeah, maybe there is a good reason for it - but from the outside it seems strange to me.
When I traded FX and complex derivative products, customers were desperate to protect themselves from exposure and variance - just seems weird that the pc parts industry would not do so; especially in a highly competitive market when this "booked in rate" actually impacts how much you charge for the product.
I always assume finance people would know how to protect themselves / their companies from such things - maybe I was wrong.
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As I say maybe we do, but I'd not be privvy to that, I don't pay the bills.
When market price drops and I am sat on old stock, I reduce my margin to remain competitive as I see what cost the stock was booked at, so in USD the actual paid price could be lower or higher, the exchange rate variance account will deal with that, now of course on product purchased in GBP from a distributor is my true landed cost, but again when the market moves I move my price, this can result in me making less profit or a loss or it can result in me having greater profits or the ability to undercut the market if required.
Yeah, multiple challenges. I guess over time it may even itself out. I think for each product a different approach might make sense.
So especially for a product that you know will sell out straight away as an example.
Anyway, didn't mean to totally derail the thread - but good to get the insight - so thanks for that.
Aye, spoke to someone at INNO3D Europe, he was saying they haven't built the cards yet and would be available to ship to retailers last week of October/first week of November. Think I'm just going to grab whichever card I can get, use it aircooled and preorder the 4090 block and have the two make babies when it releases. Thermals be damned when I'm going to block it in a few weeks anyway.
Do you know if the majority of cards coming in are reference design cards?
It's definitely looking that way and not really surprising because aircooled 4090s are like.. Playstation 5 big.
would have been sick to see an AIO only card from Nvidia. Fingers crossed for 3000MHz @ 50-60°c in my loop.
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Associate
Yeah I want to do the same as you. Any thoughts on card preference? Looks like it's only FE blocks that EK are doing at the moment.Aye, spoke to someone at INNO3D Europe, he was saying they haven't built the cards yet and would be available to ship to retailers last week of October/first week of November. Think I'm just going to grab whichever card I can get, use it aircooled and preorder the 4090 block and have the two make babies when it releases. Thermals be damned when I'm going to block it in a few weeks anyway.
Do you know if the majority of cards coming in are reference design cards?
It's definitely looking that way and not really surprising because aircooled 4090s are like.. Playstation 5 big.
would have been sick to see an AIO only card from Nvidia. Fingers crossed for 3000MHz @ 50-60°c in my loop.
So I've thought about this and I think I'm gonna try for an FE card and a card from OCUK. If I score an FE card I'll preorder the EK block and If i don't then I'll just try for any card from OCUK (INNO3D if they are a day 1 card because confirmed waterblock coming for them) and fingers crossed I can get a block for it.
Failing all that I'm just gonna wait for the INNO3D preinstalled block card.
Yeah the FE cards have a weird PCB shape according to the 4090 EK block install guide thats already on their site:
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Associate
Seems a decent strategy. Might do the same! I might try for a Zotac as a backup card. Inno3d and Zotac are both reference design (not FE compatible). I've got a Palit 3090 with an EK block on now and it's been fantastic. Air cooled I'd say the Palit gets too hot and it's too loud but with the block it's super cool but only OCs about +70. The big question is will an FE be enough for a decent custom loop system?
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