Donnie Darko

I'm posting this here cause I know CD is around and I don't see Tankguys (whoever they are) around.

I'm curious about what happens if you purchase larger quantities of hardware. Specifically CPU's, and more-specficially E6750's.

I see these being sold regularly new for less than what NewEgg gets, and I am wondering if/what kind of rate you get if you buy them in quantity, and what the minimum quantity might be.

But this question is broad, and I am interested in all types of bulk-rate computer hardware.

tankguys

It depends on a lot of factors. Computer hardware is a very, very low profit margin business. It's got low barriers to entry, which are leads directly to the those low margins.

Bulk purchases do certainly help pricing, but it depends greatly on what the item is, and how high demand is for it.

In the case of the E6750, just take a look around what what Newegg et. al. are selling them for. CPUs are one of the lowest margin parts, and the "big" stores often sell them at/below cost as loss leaders to bring in customers. Whatever price you see them charging for a chip, it's *highly* unlikely you'd get much better pricing than that even buying in mass quantity.

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Donnie Darko

So then how are these computer hardware vendors on eBay able to sell (what they represent to be) new CPU's (E6750's in particular, which I track) for less than NewEgg. Some of their "Buy it now" prices are in the $150 range.

If they are not buying them in bulk, and the margins are slim, why then (and how) would they be selling them at all ?

CyberDruid

I have no clue. I do not buy HW in bulk.

I leave that to those more in the Know like TankGuys.

I am primarily a case modder and offer a boutique of mod supplies and LC gear.

The few times I "mass bought" inventory I ended up eating it.

Not only is the profit margin low PC enthusiasts are a fickle lot and what's hot today is dead dead dead tomorrow.

I have no idea how people on eBay sell stuff soo cheap..it's nuts.

HW is only exciting when you can't get it (prerelease frenzy) and the minute it's out nobody could care less.

FYI I went through a month of turmoil trying to get my hands on a pre-release Yorkfield to bench...now that Yorkfield is ready to hit the shelves who cares about having an ES?

Pretty soon they will be as common as G0 quads...

I can't imagine ponying up ten thousand or twenty thousand to buy a lot of 100 CPUs just to watch Newegg undercut the lowest price...it's not a winning proposition.

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iampoor

Unfortunatly this is where the big dealers have an advantage....

They KNOW people are going to buy from them so they can afford that.

Anyways I cannot help but just felt like saying this

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DuckieHo

Computer hardware retail and OEM is very, very low margin due to the low barriers of entry. Computer hardware development is very high margin with extremely high barriers of entry. It's absurd how much each GPU or CPU actually costs to produce. However, companies do have to pay the millions/billions for the R&D.

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Donnie Darko

I'm considering the possibility of building & selling entire systems in that quantity range, and am trying to get a sense of what kind of cost savings there may be in buying in quantity.

I got the basic message, but would be interested in some firm numbers.

Those eBay power sellers can't ALL be selling RMA's and pulls.

CyberDruid

Sounds like you are going to lose your ass in a fantastically huge manner...just my opinion.

I can pay 20 bucks and Monarch will assemble a PC for me out of parts as cheap as you might hope to find. So I should want to start a business assembling PCs on a huge scale? Stock rapidly degrading inventory of massive quantities? I think not.

Unless you have Hundreds (not tens) of thousands to develop the business it's not a winner IMO.

The key there is volume..which is not something you get overnight. I somehow doubt dealing at NewEgg proportions happens without a ton of advertising and infrastructure. We're talking hundreds of employees and hired specialists...

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Donnie Darko

I'm THINKING about it, and asking questions. Hoping to get somemore substantive numbers.

Not selling systems like everyone else (yet). This is different and under wraps.

tankguys

Most are likely grey market parts, or similar. I can tell you there's no way they can be selling those CPUs, in the $150's, including all the eBay/PayPal fees, and still be buying them through legitimate US distribution channels.

Or, they are legit, and are taking a serious loss on each sale, which I doubt.

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Questions about our store, or product questions should be posted in our sub-forum: http://www.overclock.net/tankguys/

Thanks!