Price question

I work for Intel and we do actually make a VERY healthy gross margin of ~50%.

Thats what you get for being in an industry with only 1.5 major players....

EDIT: and yes, the R+D costs are of galactic proportions!
 
Spike560 said:
I work for Intel and we do actually make a VERY healthy gross margin of ~50%.

Thats what you get for being in an industry with only 1.5 major players....

EDIT: and yes, the R+D costs are of galactic proportions!
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AMD are only half a player?

teeheehee
 
Dicehunter said:
Ok since im being barked at left right and center how about this, after 6 months of the pc component being launched they bring the price down by 3/4, as they have made there costs back and a decent amount of profit so they dont need to sell at the ludicrous prices anymore and theyd still make a profit.
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But that wouldn't make business sense. Surely you'd want to make as much profit as possible?
 
Dicehunter said:
Ok since im being barked at left right and center how about this, after 6 months of the pc component being launched they bring the price down by 3/4, as they have made there costs back and a decent amount of profit so they dont need to sell at the ludicrous prices anymore and theyd still make a profit.
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no its the marketing technique called price skimming. basically they set it at a high price during its release into the market and whilst it grows, then reduce the price over time to keep growth up. the higher price makes people think its worth it ie "its an expensive quadcore it must be amazing" when in reality im still running everything out now on a amd4800+.

and judging by your sig and the fact you have the new products, and the fact that the companies make good money...id go out on a limb and say the strategy works.
 
i just dont get why things cost so much in the UK, my bro who works over here and in germany says stuff over there is like half the price, he came over a while ago with a q6600 go for me and said it was like £80 new and over here £170'ish with vat, why ?
And it doesnt stop at pc parts its everything, why do we pay so much for everything, answer is greedy fat cat masons, they can charge that much so they will, if they did the same in another country thats actually got a population with balls they will say, ''erm excuse me put the price down now or we'll have an uprising'', but no we are in england home of the cowering masses.

Oh and i order all my stuff from other countries were its cheaper UK prices are a rip off, do the same and save your hard earned money.
 
not sure about germany but for countries like america its near enough to all relative prices. as in the % of your income required to buy the good will be pretty similar.
ie america they sell something for $100. average income $10000 pa.
over here they sell it for £100. average income £10000 pa.
you think omg in america its £50. yes, but in america your job pays £5000 pa.
 
Wouldn't you charge as much as you can? If there are mugs out there who buy a graphics card at £300+ then why not? I certainly wouldn't pay anywhere near that much for something that is outdated and replaced in 3 weeks time.
 
Dicehunter said:
i just dont get why things cost so much in the UK, my bro who works over here and in germany says stuff over there is like half the price, he came over a while ago with a q6600 go for me and said it was like £80 new and over here £170'ish with vat, why ?
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It's not half the price, it may be a bit cheaper, but it's nowhere near half the price.

Dicehunter said:
Oh and i order all my stuff from other countries were its cheaper UK prices are a rip off, do the same and save your hard earned money.
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I hope you pay all import taxes and VAT ;)

You simply cannot comapre the cost price with the retail price either. R&D is one of the most expensive things to pay for and not only do you need to pay for the R&D of the current product but earn enough revenues to the development of future products as well.

Burnsy
 
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This thread must stop! It's breaking every known law of Economics and Business! The OP is not only mangling commercial matters he knows next to nothing about, he's also dallying in both European and International markets and throwing in an astonishing display of exchange rate/price comparison incompetence for no very good reason.

Think of the children :-(

*sobs*
 
It's simple business practice mate... Not a lot to it really.

If people will buy it, sell it at that price, then lower it as numbers sold declines...
 
well if you dont like the price, dont buy it, simple :D or just buy the cheaper alternatives like the e2180 e2200 e8400 q6600, or in gpu's x1950 for <£100 range or the lower end 8800's for about £150+. alternativly you can wait a few years and buy this extreme stuff for £50 - £200 price range :D

also: the stuff i suggest above has the power to run pretty much anything you throw at it so dont be givin me this... 'but i NEED the extreme stuff' because you dont!
 
I was going to post a reply of why they cost that much, but I think the OP is just trolling on his replies back anyway.
 
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