Will We Start Seeing 1080 Prices Getting Sensible Again Soon..?

[chrcoluk]

Hi there

Although 1080 prices are un-changed, yes still very high.

The rate has improved slightly and we have taken the gamble and improved our pricing on a couple of 1080 FE cards and most of the 1070 range.

gibbo oddly you have the gamerock premium cheaper than the super jetstream when the former is the top tier model.

 

[Gibbo]

gibbo oddly you have the gamerock premium cheaper than the super jetstream when the former is the top tier model.

Probably due to stock landing at different dates booked in on different exchange rates.

 

[AWPC]

Prices are silly Nvidia are going to be holding a lot of stock soon. They should eat the exchange rate loss its their own fault for not using their financial muscle to equalise prices across markets which sell strongly like the UK.

Sooner or later people will stop buying them as job security is worsening a high end GPU is not something you can eat or pays your bills for another month is it Surely its better to have stock flying off the shelf at a lower price that keep it high & sell fewer units.

 

[Overlag]

Prices are silly Nvidia are going to be holding a lot of stock soon. They should eat the exchange rate loss its their own fault for not using their financial muscle to equalise prices across markets which sell strongly like the UK.

Sooner or later people will stop buying them as job security is worsening a high end GPU is not something you can eat or pays your bills for another month is it Surely its better to have stock flying off the shelf at a lower price that keep it high & sell fewer units.

there is no stock (well very limited), thats why they are priced so high.

 

[h4rm0ny]

Prices are silly Nvidia are going to be holding a lot of stock soon. They should eat the exchange rate loss its their own fault for not using their financial muscle to equalise prices across markets which sell strongly like the UK.

Nvidia sell at the same price to every country, and that price is in dollars. What you're asking them to do is to sell at less to countries whose money has less value in order to subsidize their weak currency.

That happens with high-margin products where they are a sunk cost - e.g. once you have made a big budget Hollywood movie that money is spent and distribution costs are minimal so it makes sense to sell for cheaper to poorer countries if the increased sales mean more profit. But that doesn't apply to high-tech physical product like graphics cards where margins are tight and each unit has a high manufacturing cost. In such a case you have finite goods and you're going to sell them at whatever the global value settles at. Then richer countries get a larger share because their money is worth more for the finite product.

So again, you're basically asking Nvidia to make less money than they can for the sake of us. You say that prices should be equalized across markets - they are: the price in dollars is the same if you're a British retailer or an American or a German one (I'm simplifying things like shipping but please allow me as it's reasonable). But our money is worth less. It's not Nvidia that are charging us more.

 

[chrcoluk]

yet the retail prices differ and are not equal at exchange rate.

So someone among the line is adding fluff to the price in countries like the uk and Australia.

 

[h4rm0ny]

yet the retail prices differ and are not equal at exchange rate.

Retail prices vary for a number of reasons gone over many times in this thread - different tax rates, paid for at different times introducing lag, retailers needing to sell based around what they forecast the low might turn out to be rather than what it is right now to guard against finding themselves selling at a loss, and so on. All right here in this thread. Person I was replying to said that NVIDIA (i.e. not the retailer) should equalize prices for all countries. They do. That price is in dollars. We can afford fewer dollars since we decided to leave the EU.

So someone among the line is adding fluff to the price in countries like the uk and Australia.

That's a profit margin. It always exists. What I'm saying is that recent price rises that some are complaining about are an inevitable result of the falling pound and that the difference we're seeing is overwhelmingly due to that.

 

[chrcoluk]

That's a profit margin. It always exists. What I'm saying is that recent price rises that some are complaining about are an inevitable result of the falling pound and that the difference we're seeing is overwhelmingly due to that.

So there is no profit margin in the states then?

I think what you meant to say the profit margin is "higher" in the uk.

As pointed out on another post at the current exchange rate or rather the exchange rate about 4 days ago, the retail price at retail in america was approx £310 for a 1070 after market card. The same card was circa £450 in the uk. Even if you add 20% vat there is still a fair chunk in price slapped on top.

The prices are higher here largely down to that the market tolerates it, thats it really, simple supply and demand economics.

 

[Rofflay]

there is no stock (well very limited), thats why they are priced so high.

+1

Soon Sterling will get stable stock will arrive also and maybe even Titan Pascal announced in August. August is when i buy people who buy now have wasted money and made us all have to wait longer. Bascially the high priced 1080 is a Titan Gap filler because there aint no Titan yet but soon there will be a new king in town and a lot of depressed £700 GPU owners. I am waiting i will not spend a penny until at least the 20th of August but im thinking around 1st Sept will be a good time to shop for a 1080.

Heck if Nvidia launches are all going to be 66% and like this for now on i might even look into the new Titan if my 4770K will allow. I would look upon that £1000 card as the last one this system will see because i originally intended for it to have 980/1080/1180?

 

[h4rm0ny]

So there is no profit margin in the states then?

I think what you meant to say the profit margin is "higher" in the uk.

No I didn't. I don't think I could honestly tell what the profit margins are going to be between countries. Differences in shipping costs, cost of RMA to different countries, size of the market - both raw population and affluence - affecting bulk price negotiating (you can bet there are more 1080s sold in the USA than in the UK for example), having to adjust for risk of exchange rate fluctuations because too close following could lead to you selling at a loss, the fact that US prices are always quoted without sales tax included making direct comparisons harder (and which varies by state), that you never know what exchange rate figure you should be using for your comparisons because you don't know at which date the retailer you're using as your point of comparison actually paid for the cards they're selling (and that date could be two months in the future)... There are probably other factors I'm completely blind to so no, I didn't mean to say "profit margins are higher in the UK". Gibbo could probably give you a good idea of comparative profit margins but I certainly couldn't so why would I make an argument based on such a thing. Anyway, you have to wilfully ignore the numbers and statements from Gibbo posted in this and other threads to make some of the arguments that are being made here and I'm not willing to call someone a liar when they know a lot more about the subject than I do.

Let's turn this around. You're telling me that profit margins are higher in the UK than the USA. They might be - the UK puts up with a lot of crap. But I have no idea, so enlighten me. What are the profit margins on a 1080 in the UK versus the same card sold in the USA? Please tell me, chrcoluk - you seem to have a great deal more confidence in your knowledge of the subject than I do to tell me what I meant to say. Just a few comparative figures will do, please - don't put yourself out.

 

[chrcoluk]

I am not saying its the retailers although its easy to blame them, but could be just a distributor or someone else, either way the numbers dont add up.

Pure clear facts show if you look at exchange rate and VAT, the cards (and other goods) cost more in the UK than the states.

As I said its simple economics, the market here tolerates higher prices, so they get sold for higher prices.

Note how yesterday we suddenly have record low prices on AMD products even tho the pound is weak right now. All that happened with that offer is someone decided they can tolerate lower profit levels to shift higher quantities of stock.

There was one retailer quoted telling the bbc that they admit adding a extra margin to products they sell here so they had a buffer against the currency falling in value. But then when the currency did fall they raised prices anyway, as they said it fell more than their buffer could tolerate.

The only part of your argument I accept is the bulk orders affecting price, the states sells more cards, they get a discount for the larger quantities, that does make sense, although I dont believe it accounts for the entire difference in pricing.

An example of this priactice is easy to see on steam compare what games cost in russia vs the uk as an example. The publishers have even said the reason is countries like the uk will pay the higher prices hence they are higher.

 

[eddyr]

Negotiation with suppliers doesn't stop because a currency drops in value. That an agreement could be reached which offers an end customer a good deal on stock that someone in the supply chain wanted rid of and was willing to take in less revenue, maybe/maybe a loss on those units, is not relevant.

In fact getting rid of the stock before it looses further value would help retain profitability by not having to write stock off at an even greater loss - which runs counter to you last statement.

 

[chrcoluk]

yes and your post is just saying what I just said, if they have stock they want to get rid off, then thats a simple shift in supply and demand to the consumer's favour.

 

[eddyr]

Your arguments were used as specific evidence to support a premise that we overpay in the UK as though that were the only interpretation. I was helping explain how the reasoning does not support the definitive conclusion of 'being overcharged/ profiteering/ gouging' by retailers.

 

[chrcoluk]

people outside of the loop cannot be 100% sure that is true, I am only speculating.

I just look at what the information is and speculate based on that, e.g. prices rising rapidly after launch even before brexit. I doubt manufacturing costs suddenly increased during that time frame, the most logical conclusion was due to unexpected demand pricing was increased. Of course whether its the retailers or suppliers doing the price jacking remains hard to draw conclusions on, although article writers tend to suggest its retailers. This gets backed up somehow when you analyse pricing history and find large variances between different retailers whilst they are trying to price at their sweet spot vs other retailers, the pricing on the nvidia 10 series cards was very volatile before brexit never mind after it.

 

[azazl187]

If that were Amazon I might agree, but I think Gibbo is very good about communicating supply problems. There are a lot of very open comments about how many cards are on their way, what they don't have stock of. I actually think that if they knew they wouldn't be able to fulfil an order for the next six months, they would communicate that. Have you actually asked?



Well that's convincing. The fact that the pound plummets the moment Leave look to be winning is coincidence and the basic fact that when your currency falls foreign goods become more expensive to buy is apparently just a common misconception.



It's a thread on GPU prices. You can't really discuss that without mentioning the cause of recent price rises - the plummeting pound. And given that the plummeting pound is a direct result of the Leave vote, then people such as yourself take that as political commentary. But it is what it is! If someone asks about why GPU prices have gone up recently, the answer to that is because of a big drop in the value of our currency as a result of the Leave vote. You can complain about people "bringing the subject into a graphics card forum" but it remains the reason.

People going on about politics in a discussion on DX12 uptake fair enough to complain. A topic on GPU price rises? You can't ignore the elephant in the room.

The comment about it having very little difference was relevent to the total price hike we are seeing on the cards. The GBP was 1.49 to the $ before the Brexit and is now at 1.34. Thats a 10% drop in value. Have the card prices increased by 10%?

Lets take the Strix 1080 for example. Before the Brexit the card was priced at 619, it is now at 799. Thats a percentage increase of 23%

Where did the other 13% come from?.... So the drop in the pound has been accountable for just over a third of the price hike, ill concede that.

Both the pound and stock will recover, will the Strix ever go down as low as 619 as soon as this happens?

I dont blame OCUK for hikeing the prices up, its an uncertain time, i just think its a little extreme in some examples. OCUK do a good job and have supplied myself and may others with joyous moments (Haribo) and long may it continue.

 

[azazl187]

I ordered mine two days after you guys voted yourselves out. I knew full well it was a great chance to get a great deal, because the exchange rate movement meant I got considerably more £s for my €s. I also new prices would rise over the following weeks as the current stock was bought up, and new stock is imported. Sure enough, the card I bought from this store, an inno3d Herculez 1080 is now listed as £45 more than the day I bought mine.

It's not my place to say to anyone here whether brexit is right or wrong. As far as I'm concerned it's the business of the British people how you want to run you country, and no one else's, and you've made your choice. But there's absolutely no denying the event will cause your imports get a little more expensive, and it's breathtaking how you are accusing your peers of shame when the circumstances are as obvious as the noses on out faces!

A little more expensive is understandable, 23% hike in prices is not my friend.

 

[h4rm0ny]

Lets take the Strix 1080 for example. Before the Brexit the card was priced at 619, it is now at 799. Thats a percentage increase of 23%

This is a card that is rarer than Hen's teeth. There's another thread right here on this forum questioning whether it actually exists! You've picked out a card for your example that was supposed to be available some time ago and with every week that passes seems to be struggling more and more with supply. Allegedly some are due in today.

If you want the best examples (i.e. the ones with fewest external factors messing with your analysis) the 480s would be a much better case study as supply of these actually seems to be good.

 

[Gibbo]

The comment about it having very little difference was relevent to the total price hike we are seeing on the cards. The GBP was 1.49 to the $ before the Brexit and is now at 1.34. Thats a 10% drop in value. Have the card prices increased by 10%?

Lets take the Strix 1080 for example. Before the Brexit the card was priced at 619, it is now at 799. Thats a percentage increase of 23%

Where did the other 13% come from?.... So the drop in the pound has been accountable for just over a third of the price hike, ill concede that.

Both the pound and stock will recover, will the Strix ever go down as low as 619 as soon as this happens?

I dont blame OCUK for hikeing the prices up, its an uncertain time, i just think its a little extreme in some examples. OCUK do a good job and have supplied myself and may others with joyous moments (Haribo) and long may it continue.

Brexit causes a 10-14% increase typically.

Anything over is supply and demand, gouging whatever you wish to call.

Asus Strix we are ramping up massively to simply stop people buying it, the supply will be poor and remain poor for coming months, so we shall just keep increasing the price until run-rate drops to a level we can supply.

 

[shonik09]

Both the pound and stock will recover

Yes, stock will recover. The pound will not be hitting pre-brexit levels again for a very very long time, maybe another decade or so, maybe longer. We will definitely see imported products get more expensive due to a weak pound. If we leave the single market, the pound and dollar could go to parity. I don't know how you can possibly believe the pound will be heading back up anytime soon, it suggests a complete lack of understanding of how integrated we are into the EU, and how our economy has actually grown around our EU involvement over the past 30 years...

p.s. the only scenario the pound will go back up is if we get full single market access with passports... Otherwise, no chance...