Regular followers of our deals articles will recognise several retailers that seem to pop up again and again with the cheapest deals.
One such retailer is Loot, which despite offering a number of other products besides hardware, still remains competitive with its pricing.
How do hardware retailers like Loot keep their prices relatively low?
We asked Loot CEO Gary Hadfield and Senior Category Manager for Electronics, Marthinus Versfeld:
With regards to how Loot is able to offer lower prices, a big reason why Loot is so competitive is the fact that they don’t only deal in hardware, says CEO Gary Hadfield.
“We have a considerable range breadth/depth of hardware and strive to be competitive but not always the cheapest.”
“We do focus on local demand curves and align our pricing which often results in us offering the lowest prices.”
There is still a strong emphasis on finding the best supplier and dealing with local companies, however.
“We use a mix of local/global suppliers and keep a close eye on what is trending internationally,” said Senior Category Manager for Electronics, Marthinus Versfeld.
“We heavily align ourselves with local brand and distributor launches of graphics cards.”
Will this still be the case if the Rand continues to spiral out of control?
“Pricing on hardware is always directly correlated to the ZAR / USD exchange rate so yes, if the rand slips then prices will increase but conversely, if the rand improves then there should be an almost immediate drop in pricing.”
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Pricing will not drop immediately. Furthermore they buy truck loads of stuff hence bulk pricing and that is how they get lower prices. PS its cheaper to buy from Evetech than it is to buy from Esquire/Frontosa/Syntech/Pinnacle/TVR so how does that work?