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GeForce GTX 770 Specifications Leaked, Could Surprise with Pricing

PaulW said:
coming from currently owning a gtx 295 a 770 would be a massive leap if the price is right for me. saying that a 670 well be awesome too. eiather way its a Win Win for me. but that 670 had better drop like a stone when the 770 is out not paying £300+ for a 670.

when is the 770 out btw?
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Tomorrow, May 30th. 780's hit the website around 2pm iirc.
 
no, I never said that, you are either misreading me or misquoting me

I said that the way we used to do pricing was that we would take the FOB cost and then add margin from there, we wouldn't specifically look at the landed cost when setting pricing, however we knew that wages, shipping (incoming and outgoing), warehousing etc. would be 20% of our turnover at the end of the year, so we have to take the supplier cost and then add 25-35% margin to know that we would make 10-15% net profit

I am not just talking about shipping, or just wages, I am talking about total overheads as a percentage of turnover

OCUK's wages bill is about 3% of it's turnover by the way, so if your incoming shipping is 5% then that is 8% already, before looking at warehousing or any other costs
 
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andybird123 said:
no, I never said that, you are either misreading me or misquoting me

I said that the way we used to do pricing was that we would take the FOB cost and then add margin from there, we wouldn't specifically look at the landed cost when setting pricing, however we knew that wages, shipping (incoming and outgoing), warehousing etc. would be 20% of our turnover at the end of the year, so we have to take the supplier cost and then add 25-35% margin to know that we would make 10-15% net profit

I am not just talking about shipping, or just wages, I am talking about total overheads as a percentage of turnover

OCUK's wages bill is about 3% of it's turnover by the way
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When setting the price of a product though, overheads do not come into individual products, the pricing of individual product is based on two main factors:-
1. Landed cost (Based on this GPU margin is nowhere near 20%, let alone 30%, then if you did factor overheads in too we'd be making even less on GPU)
2. Being competitive in the market

Those are the important factors, overheads are a function of accounting/finance and are something to be looked into where overheads explode yet business does not and as such overall margin reduces too much or customer service slips.



andybird123 said:
if nvidia charge $150 for the GPU, the AIB adds on say $50 of costs and then a 30% margin = $285, a distro wants 30% (lets ignore shipping costs as per container you are probably only talking £1-2 per item) = $408 and the retailer wants 30% too which comes to $583

not far short are we?
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That's what you originally stated is that AIB, Distributor and Etailor make 30% or so on GPU, this is false at all levels, they simply do not. Why do you think so many AIB's have branched out to other divisions such as periphals, mini-PC's, projectors, audio, the answer is because their margins were slipping so far they needed to source higher margin products to help give a balance.

I'd say you we a miles off target, not remotely close.
 
Gibbo said:
When setting the price of a product though, overheads do not come into individual products, the pricing of individual product is based on two main factors:-
1. Landed cost (Based on this GPU margin is nowhere near 20%, let alone 30%, then if you did factor overheads in too we'd be making even less on GPU)
2. Being competitive in the market

Those are the important factors, overheads are a function of accounting/finance and are something to be looked into where overheads explode yet business does not and as such overall margin reduces too much or customer service slips.
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you are correct, overheads do not come in to individual products

what I said was that a well run company KNOWS what it's overheads are and makes an allowance for them... in our case, we knew that our overheads were typically 20% of turnover, so we knew that we couldn't go below this as a GROSS margin, or we'd be making a loss in real terms... the exception to this would be if it were an absolutely massive piece of business that you could turn around very quickly (incurring little to no warehousing costs)

we liked to keep it simple for the sales guys and include shipping costs in overheads instead of tracking it per product, I'd keep tabs on this to see how much our shipping costs fluctuated but they were pretty stable, so we just stuck with a "20% = cost price" model as it was easier
they knew that if they wanted to go below 30% it had to be pallet deliveries and below 25% it had to come across my desk with a bloody good reason

I haven't seen a full P&L for OCUK so I can't comment specifically on it's overheads as a percentage of turnover, but I'd be surprised, based on how many I have seen, if it were drastically different to 20% (including shipping in overheads rather than product cost that is)

if you don't track your overheads and aren't aware of what they really are, and allow people to set pricing that doesn't account for them, then you go out of business, it's pretty simple

based on OCUK posting 10%+ net profits, I'd say someone there is well aware of what your overheads are

you should know that your overheads are going up even before they actually do, if someone has their eye on the ball

putting incoming shipping in to overheads isn't GAAP, so apologies for any confusion caused
 
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andybird123 said:
you are correct, overheads do not come in to individual products

what I said was that a well run company KNOWS what it's overheads are and makes an allowance for them... in our case, we knew that our overheads were typically 20% of turnover, so we knew that we couldn't go below this as a GROSS margin, or we'd be making a loss in real terms... the exception to this would be if it were an absolutely massive piece of business that you could turn around very quickly (incurring little to no warehousing costs)

we liked to keep it simple for the sales guys and include shipping costs in overheads instead of tracking it per product, I'd keep tabs on this to see how much our shipping costs fluctuated but they were pretty stable, so we just stuck with a "20% = cost price" model as it was easier
they knew that if they wanted to go below 30% it had to be pallet deliveries and below 25% it had to come across my desk with a bloody good reason

I haven't seen a full P&L for OCUK so I can't comment specifically on it's overheads as a percentage of turnover, but I'd be surprised, based on how many I have seen, if it were drastically different to 20% (including shipping in overheads rather than product cost that is)

if you don't track your overheads and aren't aware of what they really are, and allow people to set pricing that doesn't account for them, then you go out of business, it's pretty simple

based on OCUK posting 10%+ net profits, I'd say someone there is well aware of what your overheads are

you should know that your overheads are going up even before they actually do, if someone has their eye on the ball
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Overheads is down to finance/accounts/MD to keep in check which they do very well. :)

You stated in a thread talking about GPU's that 30% was the margin made by AIB, disti and etailor. I can quote again if you wish, but this is what you said, which has caused this conversation.

To put it simply if you were selling GPU and adding such margins you'd be vastly more expensive than your competitors and you'd sell very little.

So please I really like to know what your 30% margins have to do in relation to GPU profits, that is the question, because it is what you stated.

No one can take GPU and add 20% or even 30% to their FOB cost, let alone DDU landed price. Unless of course the GPU you sold was very low-end GPU parts purchased in their 10,000's at a time or CAD/professional level GPU. Mainstream GPU, Enthusiest 30% simply does not exist margin wise even if you take out shipment cost, trust me we really do wish we could make even 20%, let alone 30% on GPU.
 
Gibbo said:
Overheads is down to finance/accounts/MD to keep in check which they do very well. :)

You stated in a thread talking about GPU's that 30% was the margin made by AIB, disti and etailor. I can quote again if you wish, but this is what you said, which has caused this conversation.

To put it simply if you were selling GPU and adding such margins you'd be vastly more expensive than your competitors and you'd sell very little.

So please I really like to know what your 30% margins have to do in relation to GPU profits, that is the question, because it is what you stated.

No one can take GPU and add 20% or even 30% to their FOB cost, let alone DDU landed price. Unless of course the GPU you sold was very low-end GPU parts purchased in their 10,000's at a time or CAD/professional level GPU. Mainstream GPU, Enthusiest 30% simply does not exist margin wise even if you take out shipment cost, trust me we really do wish we could make even 20%, let alone 30% on GPU.
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I can understand you being defensive on the subject of margins, but your accounts are public record and tell a slightly different story to the one you are telling, unless you are saying that GPU's are a loss leader and you sell millions of these high margin cables that you referred to

your net margins are not much lower than nvidia's infact

you have me over a barrel really, because if I post up any definitive proof that corroborates my story you can ban me for posting competitor links or whatever
 
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Gregster said:
To be fair, Gibbo gave his wink at the £300-£350 price point and for the scores being shown, that is a decent price IMO.
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I recalled he said the 770 are gonna come in at 680's price point/level, and I don't think £300-£350 is that...

Even if it really was the case of £300-£350, spec wise and games bundles the 79xx cards are still more attractive. It is still nothing more than a "GTX680 GHz Edition" in my book, and unlike the AMD GHz Edition cards, they came 14 months later rather than 6 months later.
 
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