Graphics Card Prices Compared

frank007

frank007

New member
I like this article. It gives you a nice overview of where to buy and does the search work for me. The other thing I would like to see is local prices compared with overseas prices converted into rand. The problem is that I know for a fact that there is no customs duty for computer components. Why is there such a high increase in price. I can understand an increase for freight charges getting them here etc., but not that much. For eg. A 5870 cost $379 = R3032 (this is retail price not even cost that they get it from the supplier)at an exchange rate of R8 - $1 (which is higher than what it is now) and R4100 average here. It does not cost more than R200 to bring a card here even if you send it via post! Who is making the big money???? WE ARE PAYING WAY TOO MUCH!
 
I rofloled!! :D :D

But seriously tho I'm starting to eye that Sapphire 5870 at PC Int. And just when I finally got my credit card in the black again. :rolleyes:
 
there are no customs duties on computer parts! I own a freight forwarding company! So i can complain!!!!!!!!!!
 
tariff heading 8471.30. Data processing unit or parts thereof. Phone SARS to check if you want to. 021 413 5000.
 
Ok wow triple post FTW.
Lets break it down.
Cheap 5870 in SA is about R3800 vs R3050($390)
Now shipping is R200 as they are kak heavy
Vat is R532 (14% of R3800)
So that comes to about R3752 is ja....
Sure you don't have to pay tax to the US and a bunch of other thinks so they will pay less then the R3050 for the card but both the suppliers and the store need to make a profit.

Also can you please not type with the caps and hundred exclamations marks.
 
I went down this road myself. But in the end I decided not to purchase from overseas. From what I can remember there is some sort of customs tax, not sure on the amount now. But then shipping is rather expensive, then one also has to take the risk of it being stuck at customs for a length of time.

Also, if something were to happen to the card you would have to send it back. I remember comparing the cost of graphics card between here and the UK. But in the end, there wasnt all that much of a difference, importing from the US, possible is alot cheaper.
 
tanka said:
Ok wow triple post FTW.
Lets break it down.
Cheap 5870 in SA is about R3800 vs R3050($390)
Now shipping is R200 as they are kak heavy
Vat is R532 (14% of R3800)
So that comes to about R3752 is ja....
Sure you don't have to pay tax to the US and a bunch of other thinks so they will pay less then the R3050 for the card but both the suppliers and the store need to make a profit.

Also can you please not type with the caps and hundred exclamations marks.
Click to expand...

That is excl VAT. i am talking about the importers of the cards. Not you and me and the next guy wanting to import the cards for personal use. I am talking about the companys that would buy the card directly from the manufacturer, then there wont be VAT and and you would buy the cards even cheaper(besides you as a company can claim the VAT back), then ship them to SA pay the customs VAT (duty free) and sell it here for a profit. The prices should be much lower than what they are at the moment. All i was saying is that you should check your facts before you tell me that i have not checked mine. Did you phone SARS?
 
If you import something you have to pay VAT. Nothing more to it. If you redeem it and then sell it on you are still paying VAT.
Also the price I quoted (R3750) is inclusive of VAT.
 
tanka said:
If you import something you have to pay VAT. Nothing more to it. If you redeem it and then sell it on you are still paying VAT.
Also the price I quoted (R3750) is inclusive of VAT.
Click to expand...

That is still the retail price that you would pay when you walk into the shop. That is not direct from the manufacturer. There is a difference between a retailer, a wholesaler and a manufacturer. Each of them have to put a profit on. Do you really think that importers go to one of the online stores and purchase a bunch of cards from them and then resell them here? It’s just not going to happen. They would go directly to the manufacturer to buy and they would be selling it a lot cheaper, then you could import it duty free, add TAX, a little profit and there we go. Only a little more expensive then let’s say the states. I was just trying to make a point that it should be a lot cheaper than what it is. And it should be. Another thing is that if you purchase the bulk and ship in bulk it should be even cheaper. Point!
 
The prices I was comparing (R3050 in the US vs R3750 here) are both from online retailers so it is a fair comparison and I stand by my argument. I did acknowledge that the wouldn't buy from an online retailer overseas BUT as you saw in the comparison there was nothing left for profit at all so the amount they would pay less then the R3050 would go into the local distributors or online retailers companies. Also the bulk that they bring components in is tiny for the high end stuff so they do not get great prices from the manufacturers and shipping is still expensive.
 
tanka said:
The prices I was comparing (R3050 in the US vs R3750 here) are both from online retailers so it is a fair comparison and I stand by my argument. I did acknowledge that the wouldn't buy from an online retailer overseas BUT as you saw in the comparison there was nothing left for profit at all so the amount they would pay less then the R3050 would go into the local distributors or online retailers companies. Also the bulk that they bring components in is tiny for the high end stuff so they do not get great prices from the manufacturers and shipping is still expensive.
Click to expand...

Depends how they ship it. If they ship it via sea on a FLC (full load container) then it will not be expensive per unit at all! The price is very cheap. The containers can be water proof, before you say anything there. So no problem. Shipping out of the way. Yes if you have to airfeight it it could get expensive. I know for a fact they send all the chassis via sea that is why you can better compare their prices with overseas. 80 Pounds for a HAF 922 and just under R1000 for them here. So why cant they do the same with gfx cards.

Your argument that says that it does not matter if you buy directly from the manufacturer is stupid. If the factory is in the US, the supplier only has to get the product to there shop in the US (local)! Not too expensive, depends if they send it rail or road or maybe maybe air(not really profitable). If our buyers in SA would just go the right route: manufacturer, sea freight to SA, Customs which is not much(and can claim back) and the freight forwarder(does not have to be expensive as i am not expensive at all, with the best service), to the wholesaler and finally to the buyer. Why dont the retailers just become the wholesaler? Cut out the middle man(as the say in the insurance adverts). That way us, as the buyer could save 10, 15 or even 20 percent, depending on what their markup is(could be more)! You could do this with all computer parts and even laptops. Point!
 
UK is surprisingly expensive as well just firstly. Not sure on the prices there but in the US you would pay R720 ($90) for the HAF 922 compared to R1000 in the UK and here so this actually proves my point but anyway.

I don't care how they get it here and who brings it in or sells it I am just pointing out where the money goes. So when it is imported and it goes straight to the store who sells it on to the consumer the tax would look like this:
R1K Item is imported. 14% tax is charged which comes to R1140 but tax is claimed back however they now have to sell it including VAT so they still needed to sell it for more then R1140 to make profit. So you are going to have to minus the 14% tax off the end cost of the item and the cost of item and shipping to get your profit.

So lets say the US company (New Egg) who are selling their cheapest 5870 at R3050 ($390) are adding a 10% margin. So the SA company who is importing it can get it at R2700 (Unlikely they will though as New Egg buys in huge quantities.) Now lets take shipping as R100 per card. Then add tax on the price you can get one for here (R3750) and we get to R3325 (R2700 + R100 + R512) That means that if they are adding a margin of 11.33% ((R3750 -R3325) / 3750) Now that is probably not exactly how much it would be but you could save 11.33% if you imported bulk.(Well semi bulk at least) Again though that is a minor margin as I also used 10% for New Egg and their margin is actually less then 10% the 11.33% will also drop according to my calculations. Can't explain it much better.
 
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