Graphics Card Prices Compared

tanka said:
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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New Egg are not the ones making the card. You have to go straight to the people making the card so that you can skip the middle man. New Egg is a middle man. You have to go to for example asus and buy the cards there. you cannot go to New Egg to get the cards as they also add a profit when selling there stuff! New Egg would buy the card at Asus and a profit and sell it to us. Why would you want to pay 2 peoples profits? That is just stupid. Go direct to the people making the cards (the manufacturer to put it in plain enough english) skip all the other people and save money! Easy as that. Its like talking in circles with you.
 
You seem to be skimming through my post and missing half the info. I Know I posted it late at night but still seems to make sense. Here is a quote from my last post:
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.)
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I accept the New Egg buys the card and I then take it that they add a 10% margin so that means the SA company can get the card for the New Egg price minus their margin from the manufacturer So I estimated 10% and used that in my calculations. Please go back and read before you accuse me of going in a circle.
 
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tanka said:
You seem to be skimming through my post and missing half the info. I Know I posted it late at night but still seems to make sense. Here is a quote from my last post:

I accept the New Egg buys the card and I then take it that they add a 10% margin so that means the SA company can get the card for the New Egg price minus their margin from the manufacturer So I estimated 10% and used that in my calculations. Please go back and read before you accuse me of going in a circle.
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where do you get that info? How do you know it is only 10% that they add?
 
Voicy said:
Franko, Have fun sending your card back for repairs/warranty replacing. :p
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You dont need to send it back(i am not talking about grey imports), does computers only send them back when something goes wrong as a company? they either replace it under warrenty and send it to the supplier. The supplier will then send it back and they will fix it or they will credit them. They have set arrangements with the manufacturer. All i was saying is that it is very expensive when it get to SA and it does not need to be. If a company in SA does direct imports from the manufacturer and gets good rates it does not need to be that expensive. If i was going to import a card for myself then i would just get my family in the states to send it to me via courier.
 
Again if you read my post properly you would know it was an estimate. If you want I can do the calculation with 20%

R3050 -20% = R2440

R2240 + R100 + R512 = R2852

R3750 - R2852 = R898

R898 / R3750 = 24%

So if Newegg makes a 20% margin then the SA company is making 24% so again you can't complain the amount of risk and admin involved in importing for a 4% extra margin.
 
All i am trying to say is that you could get the cards into SA cheaper. So lets work on your calculation.

R2440 + 14%(VAT)= R2781.60 (this is now incl. VAT into SA)

R2781.60 + 15%(profit) = R3198.84

R3198.84 + R100(shipping)= R3298.84

R3298.84 to the buyer in SA. Understand? Work for you?

Cheaper than what you get them here and only a couple of hundred more than the card @ Newegg.
 
That is only correct if you are not a VAT registered company. How it would usally work is that when it is imported you get charged VAT on the items value (R2440 as in your case) which is then claimed back but you then have to charge VAT on the price that you sell the item.

Also I don't believe a small company would be able to afford to sell at a smaller margin then a company like New Egg that sells thousands of graphics cards every day? They are only able to have good prices because of the amount that they sell so I think the New Egg margin is actually less then 10% which would mean it would then cost at least 2770 before you add shipping and tax.

I am not denying that if you tried you could get them cheaper but at the risk you are taking for such a tiny profit margin it is just not worth it and the suppliers are actually not making as much money as every one thinks they are. (Go compare our prices to UK prices)
 
If you had lower prices then the rest of the competion then most of the people would buy from you. then your profit margins would not need to be higher because you are selling more cards. something else i am saying is they are being over charged for shipping. If the shipping costs were lower aswell they could make the cards cheaper. All computer parts could be cheaper.
 
Whilst we do import quite a few products ourselves and could easily import our own pc componants ourselves we dont and probably never will.
The main reason is the warranty - I sleep easy at nights knowing that if I sell you a graphics card and if something goes wrong with it,that I can get you a replacement within a few working days.
 
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frank007 said:
If you had lower prices then the rest of the competion then most of the people would buy from you. then your profit margins would not need to be higher because you are selling more cards. something else i am saying is they are being over charged for shipping. If the shipping costs were lower aswell they could make the cards cheaper. All computer parts could be cheaper.
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lol.... Common sense fails you so I'm out. GL running your company :/
 
W/E man you enjoy your company but I suggest you stay out of the hardware market. Continue paying rip off prices for it cause your tiny saving on what "WE ARE PAYING WAY TOO MUCH!" for will not save you very much.
 
tanka said:
W/E man you enjoy your company but I suggest you stay out of the hardware market. Continue paying rip off prices for it cause your tiny saving on what "WE ARE PAYING WAY TOO MUCH!" for will not save you very much.
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How do you think the rich get richer? By paying more for everything? Very clever.
 
Well go and start a company. Prove me wrong. Maybe you will make enough money so your don't have to get people in the US to send you grey imports. You really did not read any of my posts properly. Just to point out the main point which was IF New Egg (US) makes 10% margin the SA company is only making 11.33% so if you think you can undercut Newegg go and setup in the US and you can be rich...
 
Why would i want to undercut Newegg? There main market in in the US. If you dont know, this is South Africa. Totally different market. I dont want to start anything in the US. My point was that prices could be cheaper. Go read the first post "genius".
 
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