Newegg CPU price Drama

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widcard

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Jul 24, 2007
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I have spent thousands with newegg over the past 6 years, so far been happy with them. I have to admit im not pleased with what i saw over past days, that some how we go from $299 to $375 Q6600. There is a simple solution to all this (greed) take all your hard earned money and spend it with another on line e-tailer for the next year or so :ouch:
 
"There is a simple solution to all this (greed)"

it's called "the law of supply and demand". demand goes up, same supply, prices go up to meet the demand. also coupled with a little thing called "competition", i bet prices went up in many places. newegg isn't stupid, you do realize there are OTHER places to buy that chip from, right? they know you can find them also, you may find that a lot of places have the higher price today, and if they dont, they may be sold out.

it's not "greed" it's "market economics"
 


:bounce:

Just try to clear your head and read what you wrote. It's not macro economics we are talking about. When they start to run out of pants in Walmart or Macy's they don't just go on a price increasing spree to lower the demand 😗 They give a raise to a bunch of managers (unlikely 🙁 ) and order more 😀

What Newegg did was low and the reason was greed. They could keep the price low and take preorders like so many other eshops but instead they dicided that it would be best to piss a whole lot of people off :fou:

I agree with widcard, Newegg will loose custumers over this, one of those custumers is typing this right now :hello:

==> Newegg is on notice!
==> 3 more days for them to get there act together.. or they are Dead To Me. (pretty sure that not just to me but to a whole bunch of people)

- You can get Q6600 for less then 300$ in a whole bunch of eshops (if you know how to work google 😗 )

Edit: To tell you the truth, I don't think that if any other Eshop was doing something like this, it would be such a big deal but many of us build a certain amount of trust and confidence in Newegg so when they start to do something like this, they are really letting thier custumers down. Let's see what next few days will bring us, many of us made complains and there is a good chance that they will listen.
 
From Newegg's standpoint, if people are willing to 375 dollars then why not raise the price. It's their duty to their shareholders to maximize profits. Dare I say it is capitalist. Newegg does not have a monopoly on q6600's so just go to zipzoomfly or some other e-tailor instead of complaining about simple economics.
 
Wow, this issue is really a non-issue. As someone already sagely pointed out, its called market economics. There is, however, another underlying reason. When something is very highly demanded, ie Q6600, by raising the price they ensure that the customers who truly want them are able to get them, albeit at a higher price. Without a price increase, lots of their customers would be left out in the cold. This is actually a very pro-consumer move by them, although most people seem to be too dense to comprehend this phenomenon. If you want to get a Q6600, you can either wait, or go shop elsewhere where they don't enforce these policies, although they'll likely sell out and leave you high and dry long before Newegg. Why is this so hard to understand?
 
I have also spent many thousands at newegg and I really don't think this isn't anything entirely new. Newegg's prices on super-popular products have been a little un-competitive for a couple years or more. They're trying to milk some extra profit off their reputation on a few select products that are very popular while keeping their other prices low. It's kind of a weird market strategy but they have to recoup the costs for all the money they spend on advertising and over-the-top customer service somewhere I guess... It's not criminal, just annoying (I happen to want some of the super-popular products myself sometimes). Cancelling the orders was also not illegal so long as it's not a bait-and-switch attempt (which can sometimes be a little fuzzy, but simply raising the price on the same product is not bait-and-switch), estores and even physical stores do it all the time (I saw a correction for a sale price posted at Albertsons just yesterday) just really annoying.
 
I don't know about you, but i've been seeing a trend in newegg. They are raising prices, and to me their service is going down. I used to shop there all the time, and never doubted my orders, till my next and newest build. For one, their packaging was horrible (albit the shippers fault too) and even the boxes inside the one huge box i had were slightly damaged. I also read in another topic that there are other place selling the Q6600 at lower prices with 2nd day shipping. That to me is something wrong. Then again, I always look for the best deal (google is my best friend)
 
I agree with Xela, "When they start to run out of pants in Walmart or Macy's they don't just go on a price increasing spree to lower the demand".
 


Well, I'm not sure how huge the demand is for pants from Walmart, but I know at Macy's they're always out of my darn size when I need new slacks.

Seriously, I fail to see what the problem here is. No one is forcing anyone to use Newegg. If you're unhappy with the service/policies, then shop elsewhere, even if the reason you're unhappy is somewhat silly.

If the situation were different, and Newegg ran out of Q6600's yesterday and had to wait 2 weeks for more stock, would people be happier about the whole situation? The prices will come down as soon as demand stabilizes, likely within a week or maybe two at most. And guess what? As they often do, Newegg will use the extra revenue they generate by selling at a higher price point when others have sold out to undercut Intel's price, or come very close to it anyway. Will people complain then?
 
Can't we just think of the higher price as "out of stock" or "reserved for corporate customers"?

I suspect that as computerized yield management hits retail after making its arguably successful though ignoble start in airline pricing, we'll start to see more of this on non-advertised items.
 
==> Newegg is on notice!
==> 3 more days for them to get there act together.. or they are Dead To Me. (pretty sure that not just to me but to a whole bunch of people)

Good morning everyone :)

2 days left 🙁
 


I bet online retailers start DELETED when they hear stuff like that, this way they can sell product at higher price then it's worth + making loads and loads of cash themselfs = having custumers belive that they are doing them a favor

Seriosly.. with logic like that.. Newegg should pay you 100$ just for that one post?
 


Actually, they make very little cash when they do something like this. By stifling demand through a price increase, their quantity sold drops, and with it, their profits. As I pointed out before, it's only done for a short while, until demand levels off. So they're sacrificing increased sales in order to maintain stock for customers who actually need the product and are perfectly willing to pay an increased price. Why don't you wait for a week? Or buy somewhere else. Invest the money you save in a class on economics, you need to broaden your horizons.
 
Newegg's price hike isn't really good business. Their success was built on a price and service model and they have seemingly abandon it now that they have had success. It creates the opportunity for some other company to fill the void. That is business too. If they don't value their loyal customer base then take your business to someone who will...eventually Newegg will get the idea or fade back into obscurity.
 

What this guy said!
 


Statements like these make me lol. Why would you completely stop shopping at a certain website, especially one as reputable as newegg, just because you don't like their prices for THREE products out of the thousands they carry. Just get your Q6600 or Exx50 somewhere else for the time being. One of the best things about shopping online is you can easily check 4-8 places in a matter of minutes so why completely give up on a site is beyond me.

Newegg is unmatched in customer service and that's something you can't put a price on.
 
DELETED. If you have 1000 cpu's to sell, you can sell them at the tray price. If you have 20 of them, and have 100 people that want them, you can and should sell them for more money. Thats the way it works. Take it or leave it. Ive spent 10's of thousands with newegg and I dont complain about it. Just wait a week or two and they will have more at tray price.
Click to expand...

Wow, I love when posters pick good names, very fitting in this case :wahoo:

In any case, I think Newegg's inventory system automatically does this. A few months ago a new cooler came out at a dirt cheap price, it gained in popularity pretty quickly, and within a couple weeks, it was selling for 1/3 more. But as people stop buying, it went back down, so yeah simple economics, maximize profits when you can. Like someone said, wait and the price will hopefully come back down.
 
There is a simple solution to this. Shop else where. I am a steady customer of Newegg. I bought all my system components from them, was jsut waiting for the processor. First time i looked it was 325, was tring to make up my mind on the 6850 or 6750 (which was 210). Then the 6850 goes to 335, not 345.

So I just did the logical thing, took my business else where.

I bought from www.antaresdigital.com 275 + 10 shipping, I will have it Friday.

Why get screwed just because you are trying to loyal to a specif company. They jsut sold one less.

They dont have a monopoly. If more people go else where, newegg can keep their stock at that price.
 


Well, why not? If you're running a business to make money, you see that a particular good (that, apparently, isn't in particularly great supply at the moment) is in high demand, and people are paying the higher price, why not charge it?

Nobody's forcing you to get anything from any one particular place... it's a homogeneous good, so if you consider it an apt use of your time to comparison shop, do so. Personally seems like a no-brainer to me, but I am an Econ major, and realize that my chosen field of study isn't known for making you many friends. :)
 
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