Graphics Card Prices Compared
- Thread starter frank007
- Start date
Tinman
MyGaming Silverback
I was thinking the exact same thing
Edit: I'm being serious. There really is no point arguing about this. You seem to have the requisite knowledge and experience, why not do it? If you really could substantially undercut local retailers, you would make a killing even with small profit margins...
Last edited:
frank007
New member
i will see. I will get the funds together and then do some more research. One of my mates has got a small retail computer company that i might look into buying. Its called adxtrading. I would like to trade as a cc and you cant register a cc anymore. I have 3 other ccs registered, one being my freight forwarding company in jo'burg, another branch in Cape Town and another one i am saving for another project that i really think could work. hush hush at the moment on that one. just want to get my freight forwarding company to past R100 mil a year turnover for both branches combine before i really get into another project.
I also really think it can be done. I will get into contact with the manufacturers and see if i could trade with them. Would just have to get someone to run it for me(i just dont have the time). Got someone in mind though. I will call the company Tank Buster Computers cc. What you think Tinman? Keep an eye out.
frank007
New member
the start of this thread was not how much profit Newegg makes. Granted it did come into someof the posts. the point of the thread was just to say that the prices in SA could be cheaper.
frank007
New member
How does your supplier get the warrenty then? All that one company has to do is act like a retailer and sell like a SA supplier. that is all that has to be done to get better prices and most of the market share due to selling cheaper than the competition. Why dont you speak with the manufacturers overseas and get sole import rights to there products with a warrenty. they would have to offer a warrenty. I could do all the imports and customs work for you at very good rates. I will give you very good rates as a fellow gamer and businessman. PM me and we can talk.
MooDy
New member
To be honest Frank I have no idea what they do with the stock that gets returned to them - They probably follow a similar procedure that we have to follow.
Which is to return it to wherever they buy it from and wait for credit/repair or replacement - but remember that returning faulty products will also push up your costs.
What would also worry me about starting something like this would be that you will obviously need to order quantaties to get the best price but technology moves so quickly - what is the latest and greatest today will be outdated tomorrow - that there is a very real chance of being stuck with older stock that you end up selling for way less than you paid for it - which again adds to your costs.
Which is to return it to wherever they buy it from and wait for credit/repair or replacement - but remember that returning faulty products will also push up your costs.
What would also worry me about starting something like this would be that you will obviously need to order quantaties to get the best price but technology moves so quickly - what is the latest and greatest today will be outdated tomorrow - that there is a very real chance of being stuck with older stock that you end up selling for way less than you paid for it - which again adds to your costs.
tanka
New member
Okay logic seems to fail people now days.
Just going to add this again:
So lets say the US company (New Egg) who are selling their cheapest 5870 at R3050 ($390) are adding a 10% margin. (True margin is just over 10%) 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 a HUGE company like New Egg only make just over 10% margin so you are making approximately the same as New Egg with huge risk due to importing and having to have stock on hand thousands of kilometres from the supplier. Your claim of selling for R3500 would only result in a 5% margin which would not be enough to make a profit.
If you still think this is a good idea then I fear for you. You may uncut current suppliers but you are not going to be "making the big money" as you said in your first post. You also seem to have a limited knowledge of hardware which is a bad start :/
Just going to add this again:
So lets say the US company (New Egg) who are selling their cheapest 5870 at R3050 ($390) are adding a 10% margin. (True margin is just over 10%) 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 a HUGE company like New Egg only make just over 10% margin so you are making approximately the same as New Egg with huge risk due to importing and having to have stock on hand thousands of kilometres from the supplier. Your claim of selling for R3500 would only result in a 5% margin which would not be enough to make a profit.
If you still think this is a good idea then I fear for you. You may uncut current suppliers but you are not going to be "making the big money" as you said in your first post. You also seem to have a limited knowledge of hardware which is a bad start :/
frank007
New member
OMG Get over it now! We are past that! I have proved my point. And we are not talking about newegg any more, used as an example. "stock on hand thousands of kilometres from the supplier" how do they do that in SA then, with all products not just computers(almost all hardware is imported, its not made here. How do they get warrenties?). They all have arrangements with the manufacturer.