Criswell

How are the pricing for items created?

I'm just wondering if you have a simple equation or try to get an average price?

It's just hard to justify spending more money buying products from your site then other known sites that I have purchased from before?

(Is this question allowed or against the rules? I'm not sure)

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Malaziel

What do you mean?

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an51r

i do not think this site sells anything its a forum.

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Ninja_Boy

You mean a Price : Performance Ratio? Example:

E6600 - 3.66GHz Stable
E6600 ES - 3.8GHz Stable
E6600 - $350
E6600 ES - $400

140MHz : $50 = 2.8MHz per $1

Like that? By the way, I just made those up. Or like Newegg: $500. tankguys: $450?

A little lost, sorry.

[OCN] Ninja_Boy

Edit // OH! I didn't know that, thanks Sideburns! I just went here because it was the Top 10 Threads Active. Silly me.

Sideburns

GUYS!!!

He's posting in the TankGuys forum.

He's asking about tankguys!

Dude, it's called MSRP...

Then when they get like super good steppings, they add a small premium because you get to choose.

prosser13

What he means is:

Manufacturer's price (price Tankguy's buys at)= $XXX
Tankguy's price (price you buy at) = $YYY

He wants to know how they get from XXX to YYY

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Anhydrous

I'll do my best to figure this out.I think I understand him as well.
He wants to know why it costs a little more to buy from Tankguys than it does at Newegg.

First: Newegg can buy in HUGE quantity,therefore lower pricing.
Tankguys is a specialty shop for guys like US that want to be able to pick a cpu from a certain week and so on.Tankguys is worth the little extra if you ask me,Ben is first class in my book and now that I found him,if they carry it i will pay the few extra bucks just to A: Keep him in business cuz he's here to get us over clockers the best possible products,and B:He has access to certain chips and you can actually ask for a certain one and he will send it,ask Newegg to do that...THEY WILL LAUGH AT YOU....

Hope that cleared up what little I know about it.If im wrong kick me arse but either way...TankGuys PWN'S Newegg if your an overclocker looking for some cpu from a certain week,mobo with certain revision,memory with D9 chips in particular.

tankguys

Anhydrous has it pretty much right.

Simple explanation:

We buy items for $X and use a fairly set formula to determine our price $Y. This can vary based on supplier and demand, but in general, it's fairly consistent.

Detailed Explanation

Why our prices are higher than other places

Volume. We don't do nearly the volume of other stores, so our wholesale costs on a lot of things are higher than what other stores sell them for. Thus, on "common" items, our prices are often higher. HOWEVER, we usually kill the other stores on new/hot items, because we don't price gouge nearly as badly as they do*... so it does pay to shop around a bit.

How we determine prices

For most items, it's a general formula we use. On specialty or "hot" items, we tweak the prices up a bit. On overstocked items that we need to get rid of, we tweak it down a bit. It ultimately depends on the specific item.

How much do we mark up the prices?

Not much - at all. Profit margins are VERY small, often only 1-4% if we are lucky. Often times, people who aren't in business do not realize how many costs are associated with running a business, costs which must be repaid before any profit can even be gained. Fraud, insurance, and credit card processing fees are among the largest, and can account for 10% of an items cost right off the bat!


The bottom line is that yes, our prices on many items are higher than other stores, but it's not because we mark them up a lot more. Our margins are very small, which is also why I can rarely offer any discounts to people




*The idea of price gouging is somewhat murky. Do we mark items up $300? No. Do I mark up high demand/low supply items a bit more than usual? Of course - we're a business, not a charity, and I do actually want to make some money

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

Thanks!

Criswell

Thanks a ton, I did not know at all that you can choose from certain steppings and manufacture dates of products, that's pretty awesome.

I know Newegg buys in bulk and therefore they just care about Make and Model and a set price.

Thanks for the clarity, now I'll have to look around a bit

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Metalica732

great explination

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