GPU prices

[PCM2]

Sure USD fell around 6am this morning but by 10am it was nearly right back up to where it was.

You're right that it stabilised a bit, but certainly not 'nearly right back to where it was' - http://www.xe.com/currencycharts/?from=USD&to=GBP&view=1W.

 

[mahius]

Britain voted leave. The price of foreign goods is now going up as a result. What did people expect? This is just dumbfounding.

Except these goods (GPUs) aren't actually from the EU and we're still in the EU. The referendum was a vote, it'll still take time for everything to happen, I've heard a lot of folks quote a couple of years. So...

They're just taking advantage of the 'doom and gloom' situation perpetuated by the media. When exchange rate was in the mid 1.20's earlier this year did we see such price rises?? Nope. They couldn't have got away with it then that's why! £ is no less likely to rally than it was then either. It's all so transparent, and any argument about this making good business sense is just nonsense.

That's pretty much the case with the value of GBP. Especially vs the dollar, it shouldn't be affected too much. Not like US is part of the EU. A lot of fluctuation as people panic and start to buy and sell. Though overall, the way I see it, there should be less demand for GBP now. And we all know that supply vs demand is one major factor that determines value.

Whatever the case, leaving the EU isn't the end of the world. It might initially be difficult to adjust to as with any change, but eventually things will settle down and we'll get used to it. Why it's just like getting a new GPU.

However I have being able to obtain more support for old gen from both AMD and NVIDIA so now we have GPU's from the following price points which puts us the lowest in the UK by miles:

R9 Fury @ £341.99
R9 390X 8G @ £259.99
R9 390 8G @ £209.99

GTX 980Ti @ £359.99
GTX 980 @ £275.99
GTX 970 @ £209.99
GTX 960 4G @ £149.99
GTX 960 2G @ £139.99


I shall be keeping a close eye on rates and adjusting products accordingly both up and down if the rate shifts by substantial amount.
Our pricing in general on graphics is the cheapest in the UK at present and we have FREE shipping enabled pretty much on every GPU!!!

Have faith and you shall be rewarded... cheers Gibbo. Wages come in a few days and the temptation to blow it all on a new GPU is rising. A 980ti won't change much (I'm at 1080p on a 60hz monitor), but perhaps a 2nd 970 to SLI with might be an idea. Whatever the case... I'll stick to my guns and wait for RX 480 to release before planning anything. But damn are those prices too tempting.

TLR Calm down folks. Nothing has really happened yet, besides some silly frantic stuff with buying/selling GBP.

 

[h4rm0ny]

Except these goods (GPUs) aren't actually from the EU and we're still in the EU. The referendum was a vote, it'll still take time for everything to happen, I've heard a lot of folks quote a couple of years. So...

The price of GPUs has gone up because the value of the pound has fallen. When the value of the pound falls, it can buy less for the same amount from other countries. The pound began to fall the moment it became apparent Leave were winning because the UK leaving the EU was regarded by major financial institutions as making the pound a much riskier investment. And if it's riskier, fewer people want to buy it and just like GPUs, when something is in less demand, the price of it fall. Doesn't matter that we're still in the EU, what matters is that we're leaving and the world's investors now think the pound is a riskier investment.

That's pretty much the case with the value of GBP. Especially vs the dollar, it shouldn't be affected too much.

It devalued in the space of ten minutes once it became apparent Leave were doing better than Remain and by an amount sufficient to affect imports noticeably. You can think what should or shouldn't happen all day long, but the pound has dropped and has remained low. It was at 1.5 when people thought Remain would win. Twenty minutes later it was down around 1.4 and still falling.

Not like US is part of the EU. A lot of fluctuation as people panic and start to buy and sell. Though overall, the way I see it, there should be less demand for GBP now. And we all know that supply vs demand is one major factor that determines value.

Yes, there is less demand for the GBP now, so its value has fallen. And as a consequence, it buys less from abroad.

TLR Calm down folks. Nothing has really happened yet, besides some silly frantic stuff with buying/selling GBP.

Silly? Imports have just become significantly more expensive. Or have you not noticed all the wailing and gnashing of teeth going on by some people here?

 

[h4rm0ny]

https://petition.parliament.uk/petitions/131215 if any of you want a 2nd referendum sign that Farage said there had to be one if he lost but he won so its only fair...

Regrettably, though I consider leaving to be a terrible mistake, I can't sign that as I don't think it's right to just have vote after vote until you get the result you want. And the fact that Farage wants to do so, well lets just say that I hold myself to a higher moral standard than I think he does.

Now allowing the Scottish a second referendum on independence, I think would be entirely fair. And I think they'll get it.

 

[Gregster]

Had this all day at work and now seeing this in the GPU section. If you want to discuss politics, go here.

https://forums.overclockers.co.uk/showthread.php?t=18737047

 

[tommybhoy]

It's not midnight yet greg, that's twice in one day we have agreed, we are doomed.

 

[TNA]

Must admit, Gibbo's £359.99 price got me wondering for a while. If they did async, I would have definitely grabbed one.

Get the feeling the 480 won't be that far away from the 980Ti when it comes to new DX12 games like Deus Ex Mankind Divided. I mean look at the results in the new Hitman game. The 390X at 2160p is ahead of the 980Ti...

Managed to pick up Deus Ex: Mankind Divided Digital Deluxe Edition from GMG today for £50. One of the only games where I am willing to pay that kind of money to support the developers.

 

[Secret_Window]

At those prices I want a 980 ti, but I keep feeling the gtx 1070 might drop a little if the rx 480 performs well.

 

[Aretak]

More likely that the 480 will go up at this point.

 

[TNA]

At those prices I want a 980 ti, but I keep feeling the gtx 1070 might drop a little if the rx 480 performs well.

Yeah, and pretty sure 1070 will be better going forward as it will deal with DX12 games better than a 980Ti.

More likely that the 480 will go up at this point.

Maybe by like a tenner? They are only $229, so a change in percentage will not have as big of a impact vs say 1080 prices which will have nearly 3 times the impact.

 

[steveoz]

Hi there


So the prices!

I had every price reverted back on graphics, I have then gone through all our prices, some I have being able to keep at the original price because the stock had landed and I also purchased them in GBP currency (UK suppliers) so thankfully even when we pay for those goods in 30-60 days the price shall be the same.

Then on the pre-order lines mainly where stock is incoming and not paid for I have gone 50/50 essentially, so where minimum increases should have being at least £20-£30 and higher, I have actually tried to keep these increases to around £10 sacrificing some of our margin.

This does mean however the prices will not get back down to their original pricing until the rate reaches 1.43, of course we may fine tune in between some prices down if rate improves.

Unfortunately if the rate does go sub 1.35 then I shall have to make further increases to graphics, thankfully Maxwell stock is un-affected by this as it was all paid for so I shall remain very aggressive on these SKU's and I have additional support to go even lower.

AMD's new launch unfortunately is effected, I have stock, but again it is not paid for and I booked the stock at an original rate of 1.43-1.44 whereas now we have re-adjusted this down to 1.36 but again I am going to sacrifice some OcUK margin to try and hit price points. I shall push AMD for some additional support to see if they can help us hit original target MSRP's I had in mind.

However I have being able to obtain more support for old gen from both AMD and NVIDIA so now we have GPU's from the following price points which puts us the lowest in the UK by miles:

R9 Fury @ £341.99
R9 390X 8G @ £259.99
R9 390 8G @ £209.99

GTX 980Ti @ £359.99
GTX 980 @ £275.99
GTX 970 @ £209.99
GTX 960 4G @ £149.99
GTX 960 2G @ £139.99


I shall be keeping a close eye on rates and adjusting products accordingly both up and down if the rate shifts by substantial amount.
Our pricing in general on graphics is the cheapest in the UK at present and we have FREE shipping enabled pretty much on every GPU!!!

Ok, when I saw the prices and this post I was a bit gutted and was thinking of looking around.

Now you've done a deal on 980TI's, you just sold a pair to me.

Good job!

 

[Telecaster]

980ti SLI is tempting, but I'd need a PSU, the GPU and another water block so that makes it not very tempting at all TBH lol.

 

[Greebo]

Even at those prices and because I would need two waterblocks making a pair more expensive than a watercooled 1080 plus with people who have moved from SLI 980ti to a 1080 and say a 1080 is better, its the only things that has stopped me pushing buy on them today.

 

[adam98150]

I didn't think I'd see the effects of the vote so soon. I actually said to somebody today "buying a new GPU today hope they don't put the prices up!". I was joking at the time.

Reckon the 480 will increase now on release?

 

[steveoz]

I know what you guys mean.

To be fair I did hesitate a bit, I mean I use a rift too and SLI isn't massively great but it does work on quite a few things.

980TI SLI is from scratch as I would be moving up from 780 SLI. That should be a nice step up, although with it still comes power, heat and SLI scaling issues, + 6GB shared VRAM.

To be fair, if there was a nice aftermarket high spec 1080 around I would go for that, it is cheaper and would be more compatible + have benefits of less power, less heat more OC.

Problem is, I don't want over priced FE cards, and I am getting ****ed off of waiting for 1080's now. I just want to upgrade and move on lol.

 

[Shockwave]

Come on. Sterling is now back at 1.37 and will rise again. Even at this rate your talking about minimal increases in the cost of a GPU, and that's assuming OCUK buys them at the MSRP, which I assume they don't. Do the sums and don't be fooled. This has just come across at a cynical money grab.

 

[tavtavtav]

Come on. Sterling is now back at 1.37 and will rise again. Even at this rate your talking about minimal increases in the cost of a GPU, and that's assuming OCUK buys them at the MSRP, which I assume they don't. Do the sums and don't be fooled. This has just come across at a cynical money grab.

I think you'd be quite surprised at the profit margin of some of these goods if being at 1.37 is a minimal increase.

 

[h4rm0ny]

Come on. Sterling is now back at 1.37 and will rise again. Even at this rate your talking about minimal increases in the cost of a GPU, and that's assuming OCUK buys them at the MSRP, which I assume they don't. Do the sums and don't be fooled. This has just come across at a cynical money grab.

Okay, lets do the sums because I don't think you have.

Let's say something has a purchase price to the retailer of $200 and the retailer normally makes a £8 margin on it when sold in the UK. (I've heard figures like £6 margin going round though in practice and the CPUs are apparently next to nothing and there to get people to buy in other items. So I'm being generous to your argument with £8).

At 1.5 which is what it was when the markets thought that we would be remaining in the EU, then in dollars that's £133 paid. But at 1.37, it becomes £145.99. A difference of £12.65.

Suddenly the retailer is not merely no longer making as much profit (reason enough to put up prices), but is now actually making a £4+ loss per unit.

Even if they still make a profit somehow, the fact that this is all per unit doesn't seem to have been really factored in by you. You think a drop of a few pounds isn't much, but sell two-thousand units and that change has just wiped out £6,000. But in practice, if they don't put up prices, it wont even be that, it could well be a loss.

People here who have no experience in this business are making some very confident statements (and insults like "cynical" and "greedy") based on a little arithmetic and no idea of actual figures involved.


Minor note to anyone wanting to quibble over the 1.5 in my figures. That's where it was when Remain was in the lead. Someone the other day declared "but it was 1.4 on the 16th". Well yes, if you just keep going back in time to find the lowest point to support your argument, you can find any figure you want. On the 16th polls showed Leave edging ahead so the pound dropped and it had been low for a little while because of the upcoming referendum anyway. Our reasonable estimate of where it would be if we were staying in the EU is 1.5 because that's where the markets valued it at when confident we were staying in.

 

[davewllms]

Had a baslest with a new build in, logged in after Brexit and it was nearly £100 more expensive =/ Went and saved that by buying through amazon instead!

 

[Greebo]

Pretty sure the margins are much bigger than that. Of course there will be some very low margin lines but dont forget when overclockers was sold its NET profits was over 10%.

With overheads of the building, staff, advertising, shipping, insurance etc, I would suspect that ocuk's margin would have to be nearer 40% if not greater.

So yes exchange rates will have an affect on profit and going on your exchange rate example it will read as follows

$200 item with a $80 margin. At 1.5 it will have cost £133 to buy in and you will be retailing at £186.66 with a NET profit of £18.66 or 10%.

Exchange rate drop to 1.37 and suddenly paying £145.98 but still selling at £186.66 then your net profit drops to £5.86 or 3%.

So not making a loss yet, just not making the profit you used to. So yes, you need to change retail selling price as the market moves but normally there is a timeframe on this. If exchange rates improve, you dont drop the retail price immediately so all items sold during that period makes a bigger profit than expected/forecast which then enables you to soak up some of the reduce profit when exchange rates mover the other way.


A knee jerk reaction of 5% across the board while sterling was still trading and improving all the time from the worst position it had been 2 hours earlier seemed to be a bad decision and I am glad somebody saw sense and pulled the plug on it.