Prices

Status
Not open for further replies.
Efour said:
They won't sell old stock at old prices they will gouge from the instant. It's scummy but that's volume bussiness like pc parts
Click to expand...

I hate the disagree with you.

For example, OcUK buy items in USD currency.


Day 1 - OcUK agree to pay $200 for a GPU. The Purchase Order could be raised on a day that the rate is 1.50 and the REAL cost to OcUK is £133.33

Day 3 - the stock lands with OcUK at a rate of 1.50 still, cost is still estimated at £133.33... payment of these items are due to supplier in 30 days time from now (Day 33)

Day 4 - customer pays £140+VAT. £6.66 profit expected.

Day 5-31 - rate remains at 1.50
Day 32 (23rd june voting day) - rate crashes to 1.35

Day 33 (24th June today )- invoice for good delivered on Day 3 and some sold on day 4 is due for payment but the rate has dropped to 1.40 so $200 is actually £142.85. So OcUK selling to you on Day 4 is a loss now.
Note OcUK will still ahve some stock available, and the cost is £142.85 not the expected £133.33, so OcUK adjust pricing to reflect the changed GBP cost.

Day 33 - OcUK adjust the pricing up on stock in warehouse as they paid more in ££££ than the expected price when the goods were delivered.

This is the fundamentals of how it works, companies can lose thousands of pounds in exchange rate changes. It is always a risk when items are purchased in one currency and sold in another and payment is 30 day or 60 days after delivery. The cost price in the selling currency is not fixed until its paid for. So the goods in the warehouse can change in cost value until paid for...
 
Last edited:
with all due respect that's not really the consumers problem on how the retailer handles their payments. not all retailers have knee jerked their pricing.
 
Cold Fusion said:
Assuming OCUK pay for their stock when its delivered to them...
Click to expand...

They don't. It arrives, a charge is made on account in dollars and it's paid 30-60 days later. Plus returns can easily become a loss-maker if you're not careful even if you had paid on delivery. OCUK has always been very good about returns. But if they made a loss on each one, that wouldn't be good.
 
neil_g said:
with all due respect that's not really the consumers problem on how the retailer handles their payments. not all retailers have knee jerked their pricing.
Click to expand...

Agreed, it's not the consumers problem. But to claim OcUK are being scummy/greedy etc whatever the comments were in this thread I believe is wrong. A valid explanation has been given.

Another retailer may not have 30 or 60 day credit terms, they may have had to pay in advance, hence they have the fixed price of £133.33.
Another thing could be that even though another retailer may have credit terms wiht the supplier too, their company bosses may have gambled and purchased USD previously and have a big stash of them at the 1.50 rate for the next few weeks etc. But again, that is a risk the other way, because if the rate jumps up to 1.60 they pay more.... as they have currency at 1.50 rate to spend before they can use the better 1.60 rate.
 
Last edited:
Ace Modder said:
Agreed, it's not the consumers problem. But to claim OcUK are being scummy/greedy etc whatever the comments were in this thread I believe is wrong. A valid explanation has been given.
Click to expand...

absolutely, not necessarily greedy but like i say perhaps a little knee jerk over others in the industry.
 
Status
Not open for further replies.
Back
Top Bottom