{"id":95347,"date":"2016-06-21T17:55:52","date_gmt":"2016-06-21T15:55:52","guid":{"rendered":"http:\/\/mygaming.co.za\/news\/?p=95347"},"modified":"2016-06-22T14:47:15","modified_gmt":"2016-06-22T12:47:15","slug":"this-is-why-south-africans-pay-so-much-more-for-their-graphics-cards","status":"publish","type":"post","link":"https:\/\/mygaming.co.za\/news\/business\/95347-this-is-why-south-africans-pay-so-much-more-for-their-graphics-cards","title":{"rendered":"This is why South Africans pay so much more for their graphics cards"},"content":{"rendered":"

Nvidia <\/a><\/strong>and AMD <\/a><\/strong>recently announced their next-generation of graphics cards, both of which seem to offer better cost-to-performance ratio than previous products.<\/p>\n

However, these cheaper prices don’t necessarily translate to the South African market – with the cheapest GeForce GTX 1070 coming in at R8,499. <\/a><\/strong><\/p>\n

The same card was originally announced in the US for a RRP of $379 (R5,790), a difference of R2,700 at the current exchange rate.<\/p>\n

We asked Rune Ravnsborg, owner of Rebeltech <\/a><\/strong>why there was such a large discrepancy between the South African and US pricing:<\/p>\n

“The answer to this question is, unfortunately, not simple at all as there are many factors that are taken into account when working out the retail price on products,” said Ravnsborg.<\/p>\n

“In an ideal world, all products would cost of the same per region and the only conversion required is the simple application of the exchange rate. This is not the case.”<\/p>\n

\n

The math<\/h3>\n

The basic\u00a0math of Buy Price (Dollar) x Spot Rate of Exchange (RoE)<\/strong>\u00a0gives\u00a0a very inaccurate value\u00a0and does not entirely account for the retail price.<\/p>\n

In order to arrive at a more accurate price, we must include factors\u00a0such as transportation costs<\/strong>, customs duties<\/strong>, VAT<\/strong> and markup<\/strong>.<\/p>\n

The best calculation to get a near-accurate landing price<\/strong> (this is a retailers buy pricing before he\/her adds his\/her own markup) is this:<\/p>\n

(Buy Price\u00a0x RoE)<\/strong> + VAT (14%)<\/strong> +\u00a0Custom Duties (+- 8%)<\/strong> +\u00a0Transportation (+- 2%) <\/strong><\/p>\n

This calculation\u00a0results in a\u00a0much higher and more realistic landing\u00a0price.<\/p>\n

\n

The real world<\/h3>\n

For the Nvidia GeForce\u00a0GTX 1080 Founders Edition, the MSRP was listed at $699, which means the buy price is $649.<\/p>\n

Using the calculations above, a simple exchange rate conversion would result in a price of R9,929.70.\u00a0<\/strong>Using the more accurate calculation results in a landing price of R12,480 <\/strong>(excluding markup).<\/p>\n

It is important to note that South Africa does not pay the same prices as North America, as our market is much smaller.<\/p>\n

\n

More gaming news<\/h3>\n

Massively powerful all-in-one gaming PC includes 10-core processor and GeForce GTX 1080<\/a><\/strong><\/p>\n

How gaming rules the biggest company in South Africa<\/a><\/strong><\/p>\n

The biggest movie releases in South Africa this week<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

An industry insider answers why South African’s pay so much more for their graphics cards.<\/p>\n","protected":false},"author":234,"featured_media":84543,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[2,20,7],"tags":[47,14875,3453,19517],"class_list":["post-95347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-features","category-hardware","tag-gpu","tag-pascal","tag-rebeltech","tag-rune"],"_links":{"self":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/95347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/users\/234"}],"replies":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/comments?post=95347"}],"version-history":[{"count":1,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/95347\/revisions"}],"predecessor-version":[{"id":95519,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/95347\/revisions\/95519"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/media\/84543"}],"wp:attachment":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/media?parent=95347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/categories?post=95347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/tags?post=95347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}