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Why are retailers charging so much over rrp.

Associate
Joined
17 Nov 2020
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17
Plenty of stock but they got the taste for selling stuff for 3 times more than it's worth and are reluctant to go back. All the desperados already got ripped off, everyone left now who wants a decent card has waited well over 2 years, they arent going to blink now while the prices remain in gold dust territory.

The way crypto is looking right now, they will be sitting with plenty of stock for a long time if they refuse to go back to fair prices. These bear markets can last 2 or 3 years easily if history is anything to go by.
 
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Soldato
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Wishaw
Greed high demand and component shortages

combination of all 3

high demand and component shortages are tapering off now slowly well at least until the next round of new gpu releases

focus on the greed side

Everyone wants their pound of flesh here

the designer/ core component manufacturers ie nvidia and amd are insisting on getting more for the bare chips there’s been a shortage so they still want to make the same profit on the reduced number of components so drive the price up

The gpu manufacturer or AIB as you’ll see them called want to make as much as they can do ramp their pricing up

the wholesale distributors they have nowhere near the level of stock to meet demand so again want to make their money so prices go up

the gpu retailers again ramping their margins up so they can continue to make the same profit margins on much fewer cards and st the moment the attitude across all of these parts of the supply chain is if we don’t do it everyone else will so why not

I can’t comment on what margins are like but I’d hazard a guess pre covid shortages somewhere like ocuk would run between a 8 and 15% margin on their gpus. So that £500 gpu would give them a markup of between £40 and £75 which is fine considering you have a multitude of costs warehousing staff picking packing shipping support etc

now imagine keeping the same margins on a £2000 gpu and your talking £160 -£300 markup a card. Obviously selling as many as you can get your hands on but I’d hazard a guess selling a lot fewer due to stock availability

interesting times ahead as we see stock availability increase over the coming months as all the cards will be bought and paid for at agreed prices so would you want to be buying large volumes of cards when then the street price could be dropping drastically

i honestly think manufacturers wholesalers and retailers will do everything they. Sun to maintain higher prices as long as possible but it could be a case of whoever blinks first and someone’s going to be caught napping holding a lid of very expensive and potentially very unsellable gpus
 
OcUK Staff
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Well I decided to have a look round several well known retailers including here and was amazed at the amount of stock available:
Amd: 6700xt £785.99 or £854
6800 £999.99
6800xt £1150
6900xt £1573 or £1399

Nvidia: 3060 12Gb £679.99
3070 8Gb £979.99
3070 Ti £1031.29 or £1200
3080 10Gb £1399.99
3080 12Gb £1308.40
3080 TI £1699.99 or £1737 or £1889.99
3090 £2242 or £2400 or £2899.99

So we get the picture, the above prices were taken from several well known UK retailers. I was actually amazed at the stock levels and the wide range of cards available, there were many more I didn't list. Now I'm sorry but at this point I don't see a shortage, I'm sure we all remember when you couldn't get any card at all. As you can see the prices of many of these cards are shocking, well to me they are. I got my Amd 6800 over a year ago for £599 from here. Now it is over £900. So its not supply and demand anymore as far as I can see here(UK) its pure and simply driven by greed. So I wont be buying any more graphics cards unless prices return to some normality. All the more money to spend on holidays, YAY!


Did you look at OcUK as your lowest prices there suggest you did not as prices from OcUK are:
3060 - From £569, £499 after 9 today
3070 - From £799
3070Ti - From £859
3080 - From £1399
3080Ti - From £1589
3090 - From £2299


Yes prices are still crazy but amongst the craziness OcUK is quite a bit lower than the lower prices you posted.

What the future holds is unknown, on one hand demand has reduced but the demand is still way beyond supply levels and on the other hand TSMC are saying they will increase prices another 20% so where prices will go the next few months is unknown.
 
Associate
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16 May 2012
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421
At least anyone paying mrsp this generation will most likely recoup the entire cost, if they upgrade to 40xx, or 7xxx.

Going to be painful anyone who paid double mrsp.
 
Soldato
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Location
Ayr, Scotland
Did you look at OcUK as your lowest prices there suggest you did not as prices from OcUK are:
3060 - From £569, £499 after 9 today
3070 - From £799
3070Ti - From £859
3080 - From £1399
3080Ti - From £1589
3090 - From £2299


Yes prices are still crazy but amongst the craziness OcUK is quite a bit lower than the lower prices you posted.

What the future holds is unknown, on one hand demand has reduced but the demand is still way beyond supply levels and on the other hand TSMC are saying they will increase prices another 20% so where prices will go the next few months is unknown.

If demand is way beyond supply why is there plenty stock on the shelves in the half dozen retailers i looked at last night, and yes i included you guys, as i said we all remember when there was no stock at all! I would suggest that we've reached the point where the fomo customers have all got their cards and the customers who have more sense, money wise, are not buying at the crazy prices that now exist.
 
Soldato
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Location
Ayr, Scotland
If demand is way beyond supply why is there plenty stock on the shelves in the half dozen retailers i looked at last night, and yes i included you guys, as i said we all remember when there was no stock at all! I would suggest that we've reached the point where the fomo customers have all got their cards and the customers who have more sense, money wise, are not buying at the crazy prices that now exist.
And Gibbo, you actually believe that £1399 for a 3080 is ok or £800 for a 3070 or £2299 for a 3090!! Come on man. Anyway had enough.
 
Associate
OP
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10 Jun 2015
Posts
322
Did you look at OcUK as your lowest prices there suggest you did not as prices from OcUK are:
3060 - From £569, £499 after 9 today
3070 - From £799
3070Ti - From £859
3080 - From £1399
3080Ti - From £1589
3090 - From £2299


Yes prices are still crazy but amongst the craziness OcUK is quite a bit lower than the lower prices you posted.

What the future holds is unknown, on one hand demand has reduced but the demand is still way beyond supply levels and on the other hand TSMC are saying they will increase prices another 20% so where prices will go the next few months is unknown.

Gibbo has OCUK found that demand for other items they sell across the store has increased, stabilised or dropped with the GPU madness across the last couple of years?

For example someone like me who use to be a pc gamer has now left the market with a computer sat in the corner of a room with no working GPU, who then inturn not be spending money like I use to be before on other PC parts/accessories etc.
 
Associate
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17 Nov 2020
Posts
17
With miners dumping GPUs by the thousands, plandemic restrictions being lifted now that the sheeple have been fully integrated to new normal vaccination and testing protocols, and stock accumulating on every site, its going to be nigh on impossible to keep the engineered shortage going. The non mining market for high end GPUs just isn't that big. Two billion pound companies certainly don't struggle to accommodate it between them, only mining has allowed that narrative to propagate.
 
Associate
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5 Nov 2007
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311
Location
Hessle
I am very frustrated with the market at the moment, I've built all my own pcs since mid 90's my self and this maybe my first pre built since then.

The fact I can actually buy a full pre built pc for not much more than the price stated above best I've found for full a full RTX 3090 build is just over £2.3k, 3080 TI is £1.8k and 3080 £1.5k now if stock is available that is another matter

like MurphyBrix might just leave the market I have an ok PC for now, which just means I wont be spending money on other new parts so I wonder how much this is hurting sales in other deps.
 
Soldato
Joined
5 Feb 2012
Posts
2,640
My father owns a local computer shop with major suppliers in the UK and you should see what the suppliers are charging for GPUs, to buy a single low end 3060 it's 600 before you add on your profit. Makes it impossible for little stores to sell GPUs and make any money.
 
Soldato
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Posts
14,242
I’m not sure I’d agree there is plenty of stock around, most SKUs are out of stock and many of those that are in stock are not there in big numbers.

Many SKUs are showing under 10, that’s nothing really.

Loads of the normal SKUs you’d expect to see with cheaper coolers just don’t exist anymore.
 
Associate
Joined
4 Nov 2015
Posts
250
This is effectively the death of future PC gaming unless prices drop for the next generation of cards. I don't see how any average earner in the UK, or the average family, can afford to put four figures towards a mid-tier GPU. Not with rising energy prices, mortgages, stagnant wages, and simple bad value for money.

I reckon consoles might have won, at least for the short term. I can see them becoming the "new PC" - optimised hardware, cheaper cost, perhaps even customisable to a large extent - with the console itself heavily subsidised in favour of expensive games, or game subscriptions. For simply playing a video game I can't see a £600 PS6 being beaten, for example.


Man I hope I'm wrong.
 
Soldato
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Location
The TARDIS, Wakefield, UK
My father owns a local computer shop with major suppliers in the UK and you should see what the suppliers are charging for GPUs, to buy a single low end 3060 it's 600 before you add on your profit. Makes it impossible for little stores to sell GPUs and make any money.

Yet people in this thread still blame the retailer. Even if 100+ units is £500 for larger companies its not the retailer to blame. Thing is they probably cant buy 100+ units. Gibbo only got 100 units of the 3050 that was sold at the special price.
 
Soldato
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Posts
2,640
Yet people in this thread still blame the retailer. Even if 100+ units is £500 for larger companies its not the retailer to blame. Thing is they probably cant buy 100+ units. Gibbo only got 100 units of the 3050 that was sold at the special price.

I think it's easier for people to blame the retailer as a lot of people don't think of a supplier. Suppliers are terrible for price hiking cards at the moment and you only really get special prices if you buy something silly like 500 units
 
Man of Honour
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Posts
11,656
This is effectively the death of future PC gaming unless prices drop for the next generation of cards. I don't see how any average earner in the UK, or the average family, can afford to put four figures towards a mid-tier GPU. Not with rising energy prices, mortgages, stagnant wages, and simple bad value for money.

I reckon consoles might have won, at least for the short term. I can see them becoming the "new PC" - optimised hardware, cheaper cost, perhaps even customisable to a large extent - with the console itself heavily subsidised in favour of expensive games, or game subscriptions. For simply playing a video game I can't see a £600 PS6 being beaten, for example.


Man I hope I'm wrong.

The only thing that I'd say saves it, is that since performance is stagnating, we don't need to upgrade so often. When I was a kid, 2-3 years was like a completely different era, but nowadays CPUs and graphics cards are still fine 5 years later. It's only really DirectX updates that finally killed my old ones off.

If someone has something around console level of performance, I should think it'll be fine now until they're retired.

I'd be fine with paying these kind of prices if performance stagnates for the next 10 years, might be unpopular to say, but eh. On the other hand, if I pay £3-400 for a midrange card and in 2-3 years performance at this price point jumps 200/300%, I'll be a very unhappy bunny. Buying a graphics card in the late stage of the console's life is maybe the most effective option, I got a RX 550 just before the new consoles came out and I could play everything from the xbox generation. If I did the same before the xbox s/x replacement, might work out a cheap way to play those games again.
 
Soldato
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Location
The TARDIS, Wakefield, UK
For simply playing a video game I can't see a £600 PS6 being beaten, for example.
Man I hope I'm wrong.

True but this has been said about the current gen, and previous gen consoles. They do seem better value for money. Then again not everyone likes consoles..........

There is a shift happening at the moment and its a little hidden. The younger generation are seeing Youtubers with PC's over consoles and wanting a gaming PC. It might take a while but there is a new generation of PC gamers coming along and these are being fuelled by what they see on Youtube.

My youngest this christmas his friends he plays with online all of them who didnt have a PC went from console to gaming PC. So that was 2 pc's and 6 console owners to all PC's now. Their cousins have both now got 2 gaming PC's to one PS4 console. Its not entirely dead yet.
 
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OcUK Staff
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OcUK HQ
If demand is way beyond supply why is there plenty stock on the shelves in the half dozen retailers i looked at last night, and yes i included you guys, as i said we all remember when there was no stock at all! I would suggest that we've reached the point where the fomo customers have all got their cards and the customers who have more sense, money wise, are not buying at the crazy prices that now exist.

Sales are strong, we have 100's in stock and we never turn down new stock to prevent running out, to run out of stock is to fail especially if stock was available to buy, so I literally take everything I can, simple fact is the product range has a few GPU's from each segment in stock, there is hardly a full range, just a few select cards in each category and everything is done on allocation. Were far from the days when I can just send a PO to a supplier for 1000 cards, the suppliers come to me offering what they can give and sometimes they get us some extra as were demanding. Sales are still superb considering.

And Gibbo, you actually believe that £1399 for a 3080 is ok or £800 for a 3070 or £2299 for a 3090!! Come on man. Anyway had enough.


I don't believe it is OK, it is an absolute joke, but I would be an idiot not to buy everything I can lay my hands on because all those 3080 at £1399 will sell as do the 3090's and everytime I can get more, I take everything I can get.

Your saying because a product is in stock it does not sell, that must mean that OcUK never sells anything as most the website is full of in stock items, like AMD Ryzen 3 processors and Intel 12th Gen CPU's, all in stock and all selling in large volumes.

Supply is improving, it is why now the odd deals can be done on GPU's like a 3060 at £499 today, now for these forums that is still considered a terrible price, but for our customer base it is the best deal in the UK and we have sold over 100 today, we snagged 1000 of these a couple of weeks ago, so when one can buy decent volumes the stock tends to last longer because we obviously have more and before it runs out I will no doubt be able to restock and get more to keep them always in stock, just like we do typically on other product lines.


Gibbo has OCUK found that demand for other items they sell across the store has increased, stabilised or dropped with the GPU madness across the last couple of years?

For example someone like me who use to be a pc gamer has now left the market with a computer sat in the corner of a room with no working GPU, who then inturn not be spending money like I use to be before on other PC parts/accessories etc.


Demand has gone from totally stupid where we either had to set an insane price to just stop it from selling in seconds, to the point where demand is still very strong but the supply has improved enough to NEARLY handle it, but saying this only on some product lines. AMD is doing OK, NVIDIA still have certain lines that sell out very quickly.
Last January was insane, the January previous was good, this January is still better than the latter but a bit down on the insane January of last year. The demand still outweighs the supply.

Chinese New Year coming up so prediction is the supply will drop off, meaning even less supply in February/March and hence probably very strong demand. April onwards is unknown, if prices increase another 20% won't be good, but right now we just take it week at a time.

To put it bluntly stock is still incredibly short and will no doubt get worse in February and potentially March too.
This madness won't end for some time yet.
 
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