Increases in GPU prices

[nomadd]

seriously this thread AGAIN?

Jesus learn how to search, this has come up multiple times, do we really need another thread?

Seriously you posted on one of these threads AGAIN?

Jesus learn how to search, this has come up multiple times, do we really need another post?

 

[montymint]

Seriously you posted on one of these threads AGAIN?

Jesus learn how to search, this has come up multiple times, do we really need another post?

congratulations, one post closer to MM access

 

[Semple]

Sterling was 1.5$ for a few hours, the real rate was 1.42-1.44. Lots of people and places keep quoting this 1.5$ when in fact was only there for brief few hours of friday morning.

I suggest you go and do some reading as this statement clearly shows you have absolutely no clue!

I'll just post this picture here for your amusement:

Even if you ignore the massive hike before 2010 where the rate was around $2:£1, you can still see from 2010 upto 2016 we actually spent most of the time over the $1.5:£1 rate (even put a nice blue line in so you can't get confused).

 

[DarrenM343]

No, not another "prices" thread.
Cheap at double the price, that's all I'm saying........ ....and they soon will be that price the way the £ is going.
Buy now before the price rises - ha

 

[snips86x]

Yeah, slightly gutted as the MSI 1080 I want is now only £5 shy of £700 I think I'll wait or just get another 980Ti...not happy about that though as the heat will be problematic.

 

[Semple]

OK, because this morning I am motivated to put some maths here and remove myths (eg exit from the EU)

KFA 1080 has £599. VAT 20% is £99. The net amount is £499.
Translating to USD with today's price, the new price in dollar is $658.68. At £1/$1.27 that is $633 per card.

If we hold NV truth to their word that the RRP is $599;
That means that the price of the card to the end market could be this. And is the price to the consumer NOT to the shops, which will buy the card cheaper. I have no idea how much profit margin the NVidia and AIBs allow, but at least a healthy 15% should be in order. (RRP - 15%). But definitely the shops do not buy on RRP.

Now lets put it into perspective. The cheapest USD prices of the GTX1080 in US is similar to the price in UK ($649)

So the weak sterling argument should be thrown out of the window guys. At £1/$1.27 we buy the cards cheaper than in US ($633 against $649 in US), while at £1/$1.32 we buy them not that much more expensive ($658 against $649 in US).

NV, AIBs and retailers simply want to make a good profit here, and everyone is trying to make money, because there is the supply-demand in place. You shouldn't be surprised if you see another £50 added to the card.

So even post GBP to USD conversion we buy more or less the same price as in US.


Weak pound myth.....

All this media "aaaaaa weak pound of 31 years, we are dooooooommmeeeeddddd"

Hold on a sec, look the exchange rate June 2014. I do not remember anyone here been up their arms about the prices of the graphic cards back then, when we paid 30% MORE than anyone else.......

It's a fair comment but that theory can be applied to anything. The problem with the market always comes down to what the consumer will pay for an item. They keep bringing this up with football season ticket prices - fans moan about paying £600-£2000 for a season ticket, yet each year without fail, they still purchase one. If each of these fans stood their ground and refused to pay the asking price, the club would have no choice but to lower the price. Unfortunately though, where one doesn't purchase said item, another person takes their place.

 

[h4rm0ny]

Sterling was 1.5$ for a few hours, the real rate was 1.42-1.44. Lots of people and places keep quoting this 1.5$ when in fact was only there for brief few hours of friday morning.

It depends on what they're arguing. If they're arguing that prices on OCUK should have gone up in proportion to the 1.5 figure rather than the 1.44-ish figure, then that's wrong in this specific window because I think their stock was bought in the 1.44-ish period. But if they're arguing against what prices would and wouldn't be outside of that short window, then it's probably correct. The pound was already depressed by uncertainty at the 1.44 figure; it rose to 1.5 when the market thought Remain were going to win. So if someone is arguing that it would be 1.5 had we voted Remain, then they have a case.

but the fact that it went up from 1.29 to 1.33 and prices for gpu's went up again is a joke tbh.

There is a lag. Prices don't go up and down from day to day on the site nor should they. Some of the stock was paid for at the better rate, as that stock is exhausted and new stock has to be bought in at the worse rate, prices start to rise. You saw almost no lag at all with the 480s because they are all new stock - affected by the falling pound immediately. Some of the Nvidia cards were already paid for before the vote, so you don't see their prices rises until later.

All we know for sure is if the market goes down by 1% all the prices jump up instantly but if the market goes up by 4% it can be days or weeks before it is changed cause companies make so much money from it.

Retailers have to absorb the risk. A bouncing pound has to be calculated based on the lows, not the highs - otherwise (on low margin products like this), you're running the risk of making a loss on your sales. You also have to think about returns which would also become a loss per unit.

EDIT: And I'm back in the thread having been suspended for using the i-word!

 

[Panos]

Guys stop the pound is weak myth. We pay the same money or less than the americans in usd.
NV and AIBs are just milking you.

Buy AMD cards who have much better value for money.

 

[Panos]

It's a fair comment but that theory can be applied to anything. The problem with the market always comes down to what the consumer will pay for an item. They keep bringing this up with football season ticket prices - fans moan about paying £600-£2000 for a season ticket, yet each year without fail, they still purchase one. If each of these fans stood their ground and refused to pay the asking price, the club would have no choice but to lower the price. Unfortunately though, where one doesn't purchase said item, another person takes their place.

That was exactly the purpose of my post. To show that the exchange rate is a myth and we pay the same price as the americans. The card is over inflater by NVidia and their AIBs.

 

[DarrenM343]

That was exactly the purpose of my post. To show that the exchange rate is a myth and we pay the same price as the americans. The card is over inflater by NVidia and their AIBs.

The exchange rate does of course have an impact. If it costs more to purchase from the source then the price to the customer has to rise. I'm not saying all of the price rises wholly exchange rate though but it's no myth.

 

[Gibbo]

The exchange rate does of course have an impact. If it costs more to purchase from the source then the price to the customer has to rise. I'm not saying all of the price rises wholly exchange rate though but it's no myth.

This!

If I work in UK, Germany, Asia or USA. I pay the USD price for the product, so $600 for example, it cost me $600 no matter where I am.

So yes in defence, the USD cost does not change.

The impact on price is this:

$600 / 1.44 = £416.66 * 20% = £499.99 Inc. VAT
$600 / 1.27 = £472.44 * 20% = £566.93 Inc. VAT

The rates are the pretty stable rates we were getting from the bank pre-brexit (not the 1.49 peak) and the new rate is what the bank is offering now. Though around Christmas time the rate was over 1.50, I was ordering a lot of car parts from the USA and getting 1.52 rate from my cc company.

In short it is a 12-14% price increase simply due to exchange rate variance.

Yes some cards have increased more than this simply due to supply and demand.

Other cards and increased far less than this as we simply reduce our own margins to single digits because supply is very good or to be competitive.

Another example, Palit 1080 FE is £599 Inc. VAT on OcUK, think makes us the cheapest, based on my re-buy yesterday our new sell price will be £650 when fresh stock lands. Why, exchange rate!

Our cost in USD is un-changed, some like Zotac on 1070's have tried to give us a little lower cost in USD but it is like $5-$10 saving to help keep our prices low.

But the simple fact is the exchange rate variance is causing a 12-14% increase which is above our normal margins we'd make on components, this is why many 1080 pre-orders from pre-brexit are shipping and making us losses.

Unfortunately in components margins are slim, a lot of the time single digits, we use other products such as peripherals, systems and labour services to improve our overall margin.

 

[h4rm0ny]

That was exactly the purpose of my post. To show that the exchange rate is a myth and we pay the same price as the americans. The card is over inflater by NVidia and their AIBs.

Would I be correct in guessing that you don't work in the area of importing computer components? I ask because in your argument you threw in a hand-waved guess at what a "healthy margin" should be of 15%. Which I'm taking to be a wild guess by someone who thinks it is an educated guess, and it's a critical part of your argument. My understanding is that margins are a Hell of a lot lower than 15% on GPUs.

In all honesty, people trying to argue that a change in exchange rate affecting prices of imported goods are "a myth", are trying to shoot down basic economic facts that everybody should understand. We buy goods in dollars and the pound has fallen. Inevitably one of three things happens - the importer makes less money, the end purchaser pays more, or Theresa May leads the country to invade Poland to distract us from our economic crises.

 

[Mr_Sukebe]

Well I would like to pass on my thanks to those in the south west and north who resoundingly voted in favour of HIGHER GRAPHIC CARD PRICES.

Good jobs lads, sock it to those EU bureaucrats. Oh, hang on...

 

[~>Dg<~]

They wont drop, as they'll still be flying off the shelves.

they will.seeing as the newer cards in the 10 series wont be long away. then you will see a nice drop in the 1080 price.

its just there wasn't much 1080s about at launch,brexit and gouging.

 

[Calo]

If I was a business, Id totally mark up prices even just a little bit if people put blame on Brexit and not my company. Its a couple of quid more for us buying luxary good (big deal!) but for OCUK its a nice profit boost which can keep the place running.

 

[Panos]

Would I be correct in guessing that you don't work in the area of importing computer components? I ask because in your argument you threw in a hand-waved guess at what a "healthy margin" should be of 15%. Which I'm taking to be a wild guess by someone who thinks it is an educated guess, and it's a critical part of your argument. My understanding is that margins are a Hell of a lot lower than 15% on GPUs.

In all honesty, people trying to argue that a change in exchange rate affecting prices of imported goods are "a myth", are trying to shoot down basic economic facts that everybody should understand. We buy goods in dollars and the pound has fallen. Inevitably one of three things happens - the importer makes less money, the end purchaser pays more, or Theresa May leads the country to invade Poland to distract us from our economic crises.

You did not read my bigger post showing that we pay the same price in usd with the americans with the fluctuation of the pound between $1.27 to $1.32 making the net value of the £600 card $633 - $658, and in USA the cheapest GTX 1080 goes for $649.99 while most of them $700.
(Net value = gross - vat)

Simple maths

 

[pacegod]

I suggest you go and do some reading as this statement clearly shows you have absolutely no clue!

I'll just post this picture here for your amusement:

Even if you ignore the massive hike before 2010 where the rate was around $2:£1, you can still see from 2010 upto 2016 we actually spent most of the time over the $1.5:£1 rate (even put a nice blue line in so you can't get confused).

We are talking about the price of 1070 and 1080s at launch, they weren't launched in 2010. Zoom your chart in to when they were launched. So my point still stands.
I have reasonable grasp on the cost of the € and $ as I watch it daily. End of May when 1080s were on sale the £ to $ was to me at a cash point or shop was 1.42-1.44 as I was in the US at the time.

 

[Griffildur]

many of you seem to have missed that we've been paying higher prices for tech for many years. It was never due to any kind of currency exchange rate. A lot of times the price in dollars is almost similar to the one in pounds.

Just to give you an idea, last time I had a bigger expense, back in 2012 ( yes that was way before Brexit, thank you very much ... ) I compared the prices for months.

I wanted a 3930k processor. in Uk the price was around £400-500 I don't remember the exact price. in US is was $430. In the end I built my desired configuration and looked for suppliers. In UK my computer would have cost me £3000. I ended up buying from US for $2200.

Look at other prices not just tech, how about software. Game costs $49.99 in US, £39.99 over here. It's been like that for ages. We're talking things with digital delivery even so can't use that as an excuse either.

Yes we've been paying inflated prices for a very long time, prices that even the VAT difference does not explain.

 

[davecarter]

The price gouging is why I have bought a 980ti for now, to be fair to OC these cards are a bargain at present so snap them up while you can.
I will upgrade to a 1080 when prices and stock actually reach acceptable levels.

 

[Griffildur]

The price gouging is why I have bought a 980ti for now, to be fair to OC these cards are a bargain at present so snap them up while you can.
I will upgrade to a 1080 when prices and stock actually reach acceptable levels.

to be fair, a 980 Ti will keep you happy for years, never had one but everyone who owns one says they OC like a champ and performance is really good.