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OcUK Systems
OcUK Staff
Joined
16 Nov 2007
Posts
2,986
Location
Stoke-on-Trent
At the end of the day as frustrating as it is waiting is all any of us can do until the situation is better. I have seen a lot of the AIB costs blamed on tariffs expiring but surely that applies to the USA as the UK negotiates as a separate entity and isn't subject to USA import tariffs or am I missing something here? Surely UK source stock direct to UK and don't source via USA after the USA have paid the extra tariff which they then unfairly pass on to the UK?
Nothing is simple enough to have a single answer.
There are a number of issues affecting pricing.
High demand for silicon fabrication (consoles, CPUs, GPUs, phones...etc).
High demand for PCB production (see above).
High demand for capacitors, VRMs, NAND etc ( again see above).
Believe it or not, even the foam and cardboard packaging has gone up in price by about 10% in the last month.
Sea container shipments over demands driving prices up by a factor of ten at the least.
Limited commercial flights pushing air shipment prices up by similar amounts.
UK port delays and increased handling fees due to Brexit.
Manufacturers wanting to make more margin on a card (limited output but with same overheads means that they have to make more per unit to break even).
Distributors and resellers needing to do the same.

As I've said before, in a typical Geforce supply chain, Nvidia will make 60-70% margin, the manufacturer makes about 15-20%, the distributor makes 5-10% and the reseller makes 5-15%.
As you can see, there's only really one entity in this chain who has enough margin to swallow price increases, so is it any wonder that FE cards are the only ones with stable pricing?
 
Associate
Joined
19 Oct 2002
Posts
1,460
Nothing is simple enough to have a single answer.
There are a number of issues affecting pricing.
High demand for silicon fabrication (consoles, CPUs, GPUs, phones...etc).
High demand for PCB production (see above).
High demand for capacitors, VRMs, NAND etc ( again see above).
Believe it or not, even the foam and cardboard packaging has gone up in price by about 10% in the last month.
Sea container shipments over demands driving prices up by a factor of ten at the least.
Limited commercial flights pushing air shipment prices up by similar amounts.
UK port delays and increased handling fees due to Brexit.
Manufacturers wanting to make more margin on a card (limited output but with same overheads means that they have to make more per unit to break even).
Distributors and resellers needing to do the same.

As I've said before, in a typical Geforce supply chain, Nvidia will make 60-70% margin, the manufacturer makes about 15-20%, the distributor makes 5-10% and the reseller makes 5-15%.
As you can see, there's only really one entity in this chain who has enough margin to swallow price increases, so is it any wonder that FE cards are the only ones with stable pricing?

Seems to be the perfect storm but yes puts nvidia in a good place to keep a stable price. Interesting times to be sure. The fact that no one saw it coming is interesting in itself.
 
Associate
OP
Joined
12 Feb 2021
Posts
10
@Gibbo & @ScottiB . Just like to say cheers for all the replies on this and other threads good to see a company actively communicating directly with the customers irregardless of this whole situation I think you've done really well with the solutions you've come up with for many customers I personally had a 3080 in queue but had to cancel for other reason's so I've been following the threads pretty religiously lol but all I can say is when this is all over put your feet up and enjoy a crate or 2 cheers
 
OcUK Systems
OcUK Staff
Joined
16 Nov 2007
Posts
2,986
Location
Stoke-on-Trent
But haven't there been a shortage of some PC hardware for almost a year since the first lock down..
There has, which is why I questioned the sanity of all three big brands insisting on releasing all of their new hardware within the space of six months when it was obvious that global supply chains would continue to struggle for most of the year.
 
Associate
Joined
29 Sep 2014
Posts
1,696
Location
Caithness , Wick
Nothing is simple enough to have a single answer.
There are a number of issues affecting pricing.
High demand for silicon fabrication (consoles, CPUs, GPUs, phones...etc).
High demand for PCB production (see above).
High demand for capacitors, VRMs, NAND etc ( again see above).
Believe it or not, even the foam and cardboard packaging has gone up in price by about 10% in the last month.

^ Foam Mattresses have increased in price on avg of 35% since the start of the pandemic with suppliers now laying out new price lists once a month as compared to twice a year previously. Its actually abysmal for data input man hours across many suppliers into our retail system. Every sector is being hammered. Im surprised the economy is doing as well as it is.
 
Associate
Joined
4 Aug 2014
Posts
1,111
^ Foam Mattresses have increased in price on avg of 35% since the start of the pandemic with suppliers now laying out new price lists once a month as compared to twice a year previously. Its actually abysmal for data input man hours across many suppliers into our retail system. Every sector is being hammered. Im surprised the economy is doing as well as it is.

Everything is creaking in the background and the general public have no idea.

Another example, the price of cardboard with all the deliveries going on is completely out of wack, suppliers like you have mentioned are giving monthly price updates as the raw materials is scarce. I know of manufacturers that have scrambled to deploy new machines to make more boxes, but new orders are not being accepted at all until perhaps late April, maybe even May now given that the conversation I had was a few weeks ago now.
 
Associate
Joined
2 Feb 2021
Posts
206
Like it or not OCUK has no obligation towards the forum users, or to give us first dibs. They may want to, but to implementation such a system alone would be fairly costly (website changes etc). Forum is just an value add service provided by OCUK for us to chat on, using it does not mean OCUK owes for anything (I mean there are not even ads here), I would say on the contrary.

And likewise we forum members are under no obligation to buy from OCUK, I am sure many of you would not hesitate to buy from other retailers if you find them cheaper.

At the end of the day The Graphics card are going out the door like crazy, there are simply no reason for OCUK to treat us more special beyond simply being "a mate".
 
Soldato
Joined
19 Oct 2002
Posts
7,269
Location
Woolyback Country
Forum is just an value add service provided by OCUK for us to chat on, using it does not mean OCUK owes for anything
I disagree there
While the forums are a great source of info and banter.A lot of recommendations are for the OCUK shop (as we cannot post competitors)So i feel they get a lot of revenue from us forum members that they would not get if there were no forums here :)
I would like to see some form of `preference`given to regular members here but realise it would not be feasible to implement
 
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