Associate
** we know how much materials and production cost plus a fair profit in a normal world
You do? That is unlikely, unless you have insight into their supply chain.
With world economics at the minute your living in a dream
My suppliers are increasing prices month on month with 10-50% increases mostly down to component and raw material shortages
Add on container shortages and increased costs expect everything to have extra on it soon
Also covid outside our bubble is running rampant again
This ^^^^^
My business has seen international freight costs increase by 400% since the start of the pandemic. Some basic components have become impossible to obtain at normal pricing, or typical lead-times - capacitors, resistors, etc. Hell, there’s even a worldwide shortage of cardboard impacting availability and cost. Some more exotic components have seen prices increase by 4000% (that is NOT a typo - four thousand percent) and/or lead-times go from 8 weeks to 52+ weeks.
How does that work ? Are you stuck with the inflated cost or can you send the goods back and get them again at the market price (rebate?).
Market price is based on what people are willing to pay AND what it costs the supplier to make it. Yes, you have the choice not to buy and that can drive prices down if enough people do the same. However, only to a point - the manufacturer will just stop making /selling the product if costs are too high.
The current high costs and supply chain issues are not going to resolve quickly, and prices are going to remain high for many goods for a long time. For GPUs, some headwinds will easy, such as mining profitability but that’s only one aspect of current pricing. Higher GPU prices are with us for some time yet - end of 2020 is the soonest I expect to see normality, if ever (reference where pricing was for the previous gen of cards).