Originally Posted by james_rich
They price gouge so the item isn't gone within 1 second of listing. Demand = higher price, basic economics.
So, in other words...you managed to miss my point. Entirely. Even though a few other people comprehended it just fine. My argument was not against the basic economics of supply and demand. I clearly
stated the GTX 690 is a current, hot-ticket item, and that a 20% markup is not surprising. In other words, of course they can charge $200 more, because the card is in high demand.
With me so far? Good.
My point was, with as much money as NewEgg ALREADY MAKES by NOT PRICE GOUGING ON OTHER HARDWARE, why risk doing this for $200 extra per card? I can't imagine that they had a large enough supply to begin with, as they sold out in what...13-14 minutes? They are arguably the LARGEST e-tailer of computer electronics, again, BY FAR. They already make a crap ton of money.
One would think that, knowing the 690 is a hot-ticket item, NewEgg wouldn't put it EVEN FURTHER out of the reach of some of their customers by charging even more (again, unnecessarily). One would think that, retaining customer loyalty by selling at MSRP (which is a big reason some distributors/resellers go under - always charging a huge amount over MSRP) and making a hard-to-find item more accessible people would be more inclined to shop at and STAY with NewEgg. Instead, you risk people being annoyed and in some instances, offended by cheap tactics, and they take their business elsewhere, possibly for life.
Still following? Alright then.Marginal profits from temporary price hikes is not worth the far larger potential losses from losing loyal customers.
Basic economics. NewEgg makes money, and a lot of it, not because they have to hike up prices, but because they buy in bulk from manufacturers at huge discounts and sell for MSRP and still make substantial profits. They shouldn't have to take advantage of hot-ticket items and risk spurning loyal customers. And it is worrying because they have been doing this with various items for a while now, including items that aren't even hard to get, but might just be popular.Edited by jcde7ago - 5/3/12 at 9:37pm