Price cuts?

Ornatus

Ornatus

Ornatus

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Joined
17 Mar 2009
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122
When the pound dropped in value against the dollar we saw an increase in cost for computer components, with the pound clawing back more than half the difference now, how long until we see the prices drop or am I living in a dream world and the 20% hike will be forgotten about?

GBP/USD over the last year, close: 1.29410, low: 1.20230, high: 1.34244.

Nvm, I didnt realise this happen over a year ago and we were at a high of 1.55 and that it's 03.20 :confused:
 
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[FnG]magnolia said:
Pop quiz! Do you think that this is the sole factor in determining prices?
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In general no, but this didn't affect just 1 product but many. Now of course it can be argued that some products will remain at the same price due to factories going up in smoke or under water. Maybe you just think it was a coincidence that the price hike happened shortly after the pound lost 0.35?
 
They won't drop again unless there is a change in demand. People will have got used to the price rises and it has become the new normal. Unless companies see a drop in demand they won't adjust their prices.
 
Prices go up very quickly, but are slow to go back down (if ever)

If a product sells, why drop the price. Look at graphics cards, they go up and up and up yet people still buy them. I think 2018 will see £1,000 phones.
 
£ is still volatile at the moment due to brexit. It may continue to go up and down constantly over the next two years.when data comes along to show a drop in things manufacturing, or rise in inflation.... Markets react.

No point in lowering prices only for it to be put back up a few months later. Unfortunately the £ is not steady at the moment.
 
Unless we see a significant change in the pound very quickly, we are more likely to see prices stay the same until Tech suppliers make a change due to wanting to clear out soon to be EOL lines or there is a new release making the lines less competitive.

OCuk and other sellers may have hiked prices to cover the increased costs of the goods they would have to repurchase after selling current stock but until that cost price changes back or there is a need to change it, I wouldnt expect any noticeable price movement.
 
Prices go up not down, I.E RAM is still triple the price it was in 2013 before the fire at Hynix mooned the prices, HDDs are still double the price they were in 2011 before the floods. Both of those disasters have been recovered from and production in both cases is back to normal yet the gauging continues... :(
 
ubersonic said:
Prices go up not down, I.E RAM is still triple the price it was in 2013 before the fire at Hynix mooned the prices, HDDs are still double the price they were in 2011 before the floods. Both of those disasters have been recovered from and production in both cases is back to normal yet the gauging continues... :(
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The sales data will be crucial to explain why prices haven't dropped. Have sales of memory and hard disks dropped since the price rise? If not, keep going. It's what the shareholders will want.
 
Prices always shoot up with whatever excuse is trending at the time...

But never goes back down again (or does very slowly) and the retailer stays quiet when questioned about it :/

I bet wages aren't going up with the increased profits being made.
 
Who are the ones doing the price gouging, retailers or suppliers?

If it were the retailers, then competition from other retailers willing to cut the margin to gain a much larger customer base would forces prices down over time. Suppliers in tech on the other hand have an easier time controlling the prices because there is less competition.

The retailer stays quiet because it is almost always the supplier that is at fault. This wont change so long as people keep pointing fingers at retailers while continuing to buy the goods. People should be questioning the suppliers.
 
I think it's very telling that a number of online companies have done "big" sales recently, to try and increase sales throughput at the cost of raw profit. Besides the wealthy, who will be oblivious to the higher prices due to the weak pound, I think more and more of us are feeling the financial pinch and spending far less on non-essential goods.
 
lude1962 said:
shops buy x amount at price y, until stock is sold price should stay the same , if it goes up before restocking they're profiteering
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Shops will re-invest that money as stock after the current stock is sold. If prices go up, they will aim to make at least the same profit while replacing the stock they sold.

If prices go up by 20% on the supplier side and that is their margin, should they sell all their current stock at the original price, knowing that they will end up soaking all that profit in just filling up the shelves again?

Ofc not.

If the business was a one off like a church bake sale, i would agree with you but a business must plan ahead.
 
Pricing due to the exchange rate is only relevant when items or raw materials are bought in a currency which is not the local one.
 
nkata said:
Pricing due to the exchange rate is only relevant when items or raw materials are bought in a currency which is not the local one.
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This is true.

My company has 24,000 products and unfortunately most of them are purchased in Euro or USD. I imagine the more expensive stuff with tech like GPUs, is similar.

I am in IT and have recently entered some of the accounts side of things. What a pain the currency rates have caused me in terms of fiddling around on our ancient and non user friendly IT systems or messing around with large orders where date of invoice vs date of order fulfilment had a significant currency exchange rate change. Some of our eastern suppliers have really taken the **** with trying their luck and getting a better deal that we would have never agreed to.
 
ubersonic said:
Prices go up not down, I.E RAM is still triple the price it was in 2013 before the fire at Hynix mooned the prices, HDDs are still double the price they were in 2011 before the floods. Both of those disasters have been recovered from and production in both cases is back to normal yet the gauging continues... :(
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Re the Hard Drives, from memory a lot of the companies were barely making any profit from making them prior to the flood and I think at least one has pulled out of the market since (not necessarily replacing all it's lost capacity before doing so), which means that their isn't the surplus of stock that was pushing the price down at the time.


With memory again the same sort of thing may well have happened, the loss of production/inventory at a major supplier can result in a shortage wiping out any excess in the supply chain and result in the price rising, then the price may not go down for years because it takes time to rebuild and if they were not making enough profit prior to the disaster (be it fire, flood, or earthquake) they may well end up aiming for higher profit parts when they restart production (one of the reasons you end up with a glut at times is because a manufacturer might be willing to run a plant at a small profit for a while instead of shutting down production to update it for the next generation of parts).
You also run into the problem that the sheer number of consumer devices that need memory now is ever increasing, so your PC memory might be less profitable than if they supply the basic chip to someone like Apple or Samsung for use in a phone or tablet.

I remember going back 20+ years every time there was a big earthquake in the far east it affected RAM prices for a long time, as it takes months/years for a lot of the facilities to be repaired, cleaned and return to production at the same level they were prior to something like a flood or fire (even just loss of power for longer than the generators/backup systems can manage leads to long shut downs whilst everything is sorted out).
 
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Werewolf said:
You also run into the problem that the sheer number of consumer devices that need memory now is ever increasing
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Crazy some of the tech coming out.

A fridge that lets you check what you have + expiry using built in cameras and your phone!

They should put a built in EAN scanner so you can record what you need to buy as you take stuff out!

https://www.johnlewis.com/samsung-r...rgy-rating-90cm-wide-stainless-steel/p3265778

Product information
A fusion of smart technology and the latest in refrigeration design, the RF56M9540SR/EU Family Hub Fridge Freezer from Samsung will help you manage your groceries, connect with your family and entertain guests like never before. With a WiFi enabled LCD touchscreen built-in to the door, internal cameras and a range of handy apps, you won't know how you managed in the past.

Food management
3 built-in cameras allow you to see what’s inside the fridge via internet connectivity. When you're out shopping, you can use your phone to check what's left in the fridge and work out what you need to buy. There are also systems to help you keep track of your grocery's expiry dates, as well as monitor and re-order your food shopping.

Family connection
The fridge's touch screen display also works like a kitchen blackboard, complete with a calendar and diary for you to add reminders to, or share notes with the rest of the family. Just like a large tablet, you can watch TV or listen to the radio on while you're in the kitchen, or take advantage of a range of other apps that offer thousands of recipes and foodie ideas.

Flexible and reliable cooling
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All apps available on Android and iOS:

  • View Inside - 3 built-in cameras take a picture every time the doors close, so you can view what’s inside your fridge from your phone.
  • Groceries by Mastercard - The entire family can connect to your favourite local grocer to make a list and place an order.
  • Allrecipes - Instant access to an amazing collection of member-shared recipes, photos, ratings and reviews.
  • Sticki - Share calendars, post photos and write notes on the Family Hub™ touchscreen or from your phone.
  • Pandora - Discover and listen to new music with personalised stations that play the music you love.
  • Whiteboard -Write notes and draw pictures on the Family Hub™ or your phone to leave messages for your family.
  • Photo Album - Display your favorite photos directly on the Family Hub's™ vibrant touchscreen.
  • Shopping List - Create your list which will conveniently sync between your Family Hub™ and mobile device.
  • Samsung Club Des Chef - Your key to delicious recipes for all different occasions.
  • Tune In - Listen to your favorite radio stations for free, with sports, news, music and talk radio.
  • Calendar - Keep on schedule and sync everyone’s calendar from the touchscreen or your phone.
  • Timer - Start or stop time intervals that are used to countdown with alarm notifications.
  • Settings - Set up Bluetooth, Wi-Fi, date & time and so much more.
  • Fridge Manager - Control the refrigerator and freezer temperatures, check water filter status and control the ice maker.
  • TV Mirroring - Whatever you're watching on your Smart TV, you can mirror it on to your Family Hub™ screen.
  • Internet Browser - Enjoy quick and easy access to the internet, just like on your tablet or phone.
  • Weather - Get the forecast at a glance to plan your day.
Click to expand...

But can it play Crysis?
 
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