Newegg CPU price Drama

[xela]

I don't see anyone complaining when prices go down due to low demand / higher supply.

No complains when prices go down....
No complains when prices go down...
No complains when prices go down..
No complains when prices go down.

Damn right.. no complains.. what was your point again?

 

[asgallant]

Nice theoretical discussion and an A+ on your test, but it doesnt assume competition, dude. Most 101 micro/macro economic models are based on one supplier models. While it explains the basic concept, it doesn't really answer the question. The reason that it doesn't is because you don't address the issues I stated earlier about Business Management. If the new equilibrium pricing was what Newegg was charging, then why is it that the rest of it's competitors were so far lower? Answer: because Newegg got it wrong for the sake of making profit and in the process screwing it's customers. If Newegg went purely off the economics approach, they'd concede that there is NO demand for an athlon 3200+, but there it is on their website. If someone actually wanted it, shouldn't they price it at $1 just to save themselves the added expense of storage and having it on the books for another 3 years before they throw it away? I mean... they are just applying pure economics, right? Wrong. There are so many other factors that MUST be taken into account in this paticular situation. You can't just throw out some economic theory and expect it to stick for those of us who have actually been to business school, because if successful businesses only relied on economics for pricing decisions, then there would be no managers, just economists. That's a scary prospect, to tell you truthfully.

My whole argument is based upon the premise that NewEgg perceives an increase in demand for the processor. You can actually separate out the individual demand curve for a given product at a given retailer, otherwise everyone would always purchase from the retailer with the lowest price (including all opportunity costs and incidental costs) for every item. In reality, we don't observe that phenomenon. Consumers are lazy; they are not willing, on the whole, to seek out the lowest prices or even consider alternative goods unless they have been explicitly informed of them (though word-of-mouth or advertising).

I think my point about the increase in price being rational is proven by the fact that NewEgg is out of stock on the processor. If it was charging an irrationally high price, then the customers would not have purchased up the stock.

Now, whether or not it was a good decision from a marketing or public relations perspective is debatable, but it makes absolutely perfect economic sense.

 

[chocobocorey]

Well... it IS market economics, but not really because you are under the false assumption of two things:
[...]

Call a spade a spade and say what it is... it won't hurt... I promise.

nicely done. yeah i agree its very doubtful there is a huge shortage of the q6600 chips. theyve been around for what 6 months now, and every other retailer has plenty in stock.

i think a lot of people (including myself) waited so long for these july 22nd price cuts and were completely dissapointed when nothing even happened that day and may be taking some anger out on newegg. the q6600 had gradaully fallen on newegg but then actually rose on the 22nd. im waiting for a drop of the e2160 or e4300. but doenst look like its happening.

 

[xela]

Awesome post asgallant,
I just disagree with one thing:

2. Is one cpu priced higher than other retailers offer it (even significantly so) cause for tarnishing NewEgg's image? I think not.

Less then a week ago when if I wanted to know what a fair price for a product was, I went to Newegg instead of Google or pricegrabber and I think that I wasn't the only one. That's the amount of confidence I've had in the company and it's image. They pretty much managed to destroy that as it was and there is no statement explaining thier new pricemodel for CPU's (mind you, everything else is still pretty much cheaper then at other Esellers). When someone gave or linked a price on this forums people would go to Newegg without giving it a second thought. It will not ruin them, noone said it would, but it will force everyone who knows that Intel wholesales this CPU's for 266$ check the competition so new pricemodel can be concidered a stupid move just for that.

 

[caamsa]

Well... it IS market economics, but not really because you are under the false assumption of two things:
1: That there is NOT enough chips to meet the demand. Bullshit. There are more than enough chips flooding the market right now or else the manufacturer would not have dropped the price to begin with. The demand for these chips OBVIOUSLY does not match the supply, or else Intel would have an almost dominance of the market for cpus (which it does not) and they could keep the prices as high as they wanted for as long as they could balance on the head of that proverbial pin.
2: That customers are somehow benefiting from price-gouging. Get real man... That's like saying that it's justifiable that a 24hour shutdown at a refinery in Kansas due to flooding is grounds for a .30 price hike from Montana to Kentucky when gasoline supplies are at an all-time high. All this does is pad the profits for the companies that engage in this shameful behavior. If your whole montra is low prices and good service, then how is it good for your image to gouge people when you are actually paying LESS now for the chips than you were a week ago? If the wholesale pricing had increased because of shortages, then there would be justification for a price increase. Since it hasn't, then it's not: It's price gouging, plain and simple. You can hide behind the "Pure Economics" approach, but it's only one part of the equation when you run a business. If you are purely for profit, a company will usually die in this environment because bad news travels faster and farther than good news does (Marketing 300 or so) and if you gouge people, your brand is hurt irreparably. (Brand Management 300) Just think: the word "Nike" and the trademark swoosh is worth almost 2 billion dollars on Nike's Income Statement alone. That being said... your brand image IS everything. This marketplace is flooded with competitors with extremely low barriers of entry into the computer part e-tailing business. (Study up on your Porter and his Five-Forces model for more information), so Newegg had better protect the one thing that a LOT of etailers lack: their image. As a manager, how are you going to justify selling LESS of something at a higher price point when you could be selling them ALL and having even more sold through pre-order? I'll explain: if you gouge and your loyal customers cry "foul", then it's your ass as a manager because you are now going to be selling LESS of them at ANY price point because your image is ****. You can focus on the short-term and grab the profit in this environment or you can stick with who took you to the dance and be loyal back to your customers by staying true to your principles. That's more of a Strategic Manager thing, about a 470 level class.

With those facts in mind, how are you going to try to justify an obviously unjustified price spike just because Newegg has the rep to get some people before they really know what's going on? Technically, it's not predatory pricing, but it's just as outrageous as $3 bottled water after Hurricane Katrina. The only thing that's "dense" in this is your statement that people don't understand when they're getting it up the ass that it's just "market economics". The fact is that you can go find a 6600 SOMEWHERE at any given time right now IN STOCK for under $300 ANYWHERE else but Newegg. So, oh wise one, how in the hell is that market economics and not price-gouging???? Call a spade a spade and say what it is... it won't hurt... I promise.

Dude get your facts straight. You don't know what price gouging is. So chill.

Price Gouging is......read below.

Pricing above the market when no alternative retailer is available.

A quote from Wikpedia:

Price gouging may be charged when a supplier of essential goods or services sharply raises the prices asked in anticipation of or during a civil emergency, or when it cancels or dishonors contracts in order to take advantage of an increase in prices related to such an emergency. The model case is a retailer who increases the price of existing stocks of milk and bread when a hurricane is imminent. It is a defense to show that the price increase mostly reflects increased costs, such as running an emergency generator, or hazard pay for workers.

We are talking about a damn cpu a damn freaking cpu not esential items like food or water. Are we in a civil emergency? What the hell................

Please lock this damn thread............

 

[tmouse]

My whole argument is based upon the premise that NewEgg perceives an increase in demand for the processor. You can actually separate out the individual demand curve for a given product at a given retailer, otherwise everyone would always purchase from the retailer with the lowest price (including all opportunity costs and incidental costs) for every item. In reality, we don't observe that phenomenon. Consumers are lazy; they are not willing, on the whole, to seek out the lowest prices or even consider alternative goods unless they have been explicitly informed of them (though word-of-mouth or advertising).

I think my point about the increase in price being rational is proven by the fact that NewEgg is out of stock on the processor. If it was charging an irrationally high price, then the customers would not have purchased up the stock.

Now, whether or not it was a good decision from a marketing or public relations perspective is debatable, but it makes absolutely perfect economic sense.

There is one important caveat while in general "Consumers are lazy; they are not willing, on the whole, to seek out the lowest prices or even consider alternative goods unless they have been explicitly informed of them" The internet IS changing many former business practices. People who buy CPU's are far more likely to look around on the net than the average consumer. While vender loyalty IS important (as displayed by the rampant defense of Newegg in the face of the facts that lower prices are better for all of us and this is encouraging others to follow Neweggs lead) because of this practice, people who shopped almost exclusively with Newegg are now going else ware. IF they just had a higher price it probably would have had FAR lesser impact (most would have assumed they were selling the older/higher priced items). Many have seen the price jump from the selection page to the cart (this could be problematic in some legal jurisdictions like having a different UPC shelf price from the item price). THAT is what I believe is pissing people off and while in the past bad word of mouth spread slowly and locally the internet HAS changed that. It is always true that $1 of bad mouthing undermines $1000 (or more) in advertising and since it’s harder to regain lost customers than lose them (assuming new customers just go with the best recommended vendors). Does Newegg have good customer service it seems so but that should not necessarily be the end all I personally, have had good and bad experiences from all 3 of the top venders. We should never except less, sales must be as good as customer service, its not much comfort to me to know I'll be taken care of AFTER I get shafted (I prefer not to get shafted in the first place 😱 )

PS: I'm not against Newegg selling at whatever price they want I do feel its in our interest to support the others when the price is right (even though others may have personal reasons to disagree the differences in service are not that different)

 

[surf2di4]

"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"

prices don't go up to meet demand, they go up to make a bigger profit during hi demand low supply.
prices go down when demand is low and supply is hi.

 

[societysvillain]

Three things come to my mind.

New egg does have a right to do this.

Thankfully there are other places to shop.

Setting fair prices regardless of demand is a lost art of building customer loyalty. I think the egg is making a mistake here personally.

 

[DJ_Jumbles]

Dude get your facts straight. You don't know what price gouging is. So chill.

Price Gouging is......read below.

Pricing above the market when no alternative retailer is available.

A quote from Wikpedia:

Price gouging may be charged when a supplier of essential goods or services sharply raises the prices asked in anticipation of or during a civil emergency, or when it cancels or dishonors contracts in order to take advantage of an increase in prices related to such an emergency. The model case is a retailer who increases the price of existing stocks of milk and bread when a hurricane is imminent. It is a defense to show that the price increase mostly reflects increased costs, such as running an emergency generator, or hazard pay for workers.

We are talking about a damn cpu a damn freaking cpu not esential items like food or water. Are we in a civil emergency? What the hell................

Please lock this damn thread............

Hmm... take out the words "civil emergency" and you have exactly what the Egg is doing. They are cancelling their existing orders at lower price points and telling people they were out when in fact they did have stock, but they were only willing to sell them at the higher price.

Oh, wait... I just looked up the definition in Wikipedia (YOUR SOURCE) and here it is: (link: http://en.wikipedia.org/wiki/Price_gouging)

"Price gouging is a frequently pejorative reference to a seller's asking a price that is much higher than what is seen as 'fair' under the circumstances. In precise, legal usage, it is the name of a felony that applies in some of the United States only during civil emergencies. In less precise usage, it can refer either to prices obtained by practices inconsistent with a competitive free market, or to windfall profits. In colloquial usage, it means simply that the speaker thinks the price is too high. Non-pejorative uses are generally in reaction to what the writer believes is an unjustified restraint on the market."

So... just so I got this straight, you're saying that if it's not legally chargable, that the term doesnt apply? Well, sorry for using it in the "less precise" usage category, Herb, but the definition still applies. You should READ your source before using it to bash someone... it's really ignorant and shows your arse.

BTW: this is one of the best topics on these forums right now. It really has an over-arching theme that I think that we'll see more and more in the future, therefore, I think that it's completely germaine to talk about. The business models that etailers use to determine pricing is VERY important to what we as enthusiasts encounter when making informed purchases. If a retailer has dropped the ball or is screwing people over by not honoring their prices, then that's just wrong... I don't give a rat's arse if it's legal or not.
If you don't like the thread, don't read it. We'll continue having an intelligent conversation for a change.

 

[warezme]

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".

Wow!, I guess I ordered under the wire, if they don't cancel it cause it was still $295 when I pushed the buy button, $297.00 with 2nd day Fedex. I just hope this Q6600 is as decent an OC'er as my E6400 has been. But if it ain't it is still just a stepping stone to a Quad Penryn eventually so I can deal until then.

 

[tyspeed29]

Just go buy it from www.zipzoomfly.com $299 Q6600 with free fedex shipping. Just picked up 2.

 

[tyspeed29]

Just go buy it from www.zipzoomfly.com $299 Q6600 with free fedex shipping. Just picked up 2.

Link to it

http://www.zipzoomfly.com/jsp/ProductDetail.jsp?ProductCode=80864

 

[Shadow703793]

Think about what would have happen if the prices didn't get cut????

 

[chocobocorey]

BTW: this is one of the best topics on these forums right now. It really has an over-arching theme that I think that we'll see more and more in the future, therefore, I think that it's completely germaine to talk about.
If you don't like the thread, don't read it. We'll continue having an intelligent conversation for a change.

that is true. although it isnt saying too much since most of the topics around the forumz are "what outrageously priced, underperforming AGP card can i max out my really old POS AGP system with one last time??!?!?!" or "does a sound card REALLY help performance more than onboard" or the classic "should i buy x piece of garbage current mid range video card, or good previous gen card?"

zzzzz

p.s. the answers, for the record, are none, yes but not more than enough to warrant spending the money on a sound card over a more powerful cpu or vid card, and good previous gen card.

 

[mikeyp410]

..

 

[mikeyp410]

DELETED

So what your saying is by me putting a order of one q6600 in my cart at the price that I clicked buy (320) and by the time I went to the final check out screen it said 345 is not wrong? Don't you think they should have honored the price that I added to my cart at???? Or the guy that had his order canceled when he paid 320 and then had to pay the extra? I did not end up buying it from there but that is just plain wrong.

 

[cb62fcni]

Well... it IS market economics, but not really because you are under the false assumption of two things:
1: That there is NOT enough chips to meet the demand. Bullshit. There are more than enough chips flooding the market right now or else the manufacturer would not have dropped the price to begin with. The demand for these chips OBVIOUSLY does not match the supply, or else Intel would have an almost dominance of the market for cpus (which it does not) and they could keep the prices as high as they wanted for as long as they could balance on the head of that proverbial pin.
2: That customers are somehow benefiting from price-gouging. Get real man... That's like saying that it's justifiable that a 24hour shutdown at a refinery in Kansas due to flooding is grounds for a .30 price hike from Montana to Kentucky when gasoline supplies are at an all-time high. All this does is pad the profits for the companies that engage in this shameful behavior. If your whole montra is low prices and good service, then how is it good for your image to gouge people when you are actually paying LESS now for the chips than you were a week ago? If the wholesale pricing had increased because of shortages, then there would be justification for a price increase. Since it hasn't, then it's not: It's price gouging, plain and simple. You can hide behind the "Pure Economics" approach, but it's only one part of the equation when you run a business. If you are purely for profit, a company will usually die in this environment because bad news travels faster and farther than good news does (Marketing 300 or so) and if you gouge people, your brand is hurt irreparably. (Brand Management 300) Just think: the word "Nike" and the trademark swoosh is worth almost 2 billion dollars on Nike's Income Statement alone. That being said... your brand image IS everything. This marketplace is flooded with competitors with extremely low barriers of entry into the computer part e-tailing business. (Study up on your Porter and his Five-Forces model for more information), so Newegg had better protect the one thing that a LOT of etailers lack: their image. As a manager, how are you going to justify selling LESS of something at a higher price point when you could be selling them ALL and having even more sold through pre-order? I'll explain: if you gouge and your loyal customers cry "foul", then it's your ass as a manager because you are now going to be selling LESS of them at ANY price point because your image is ****. You can focus on the short-term and grab the profit in this environment or you can stick with who took you to the dance and be loyal back to your customers by staying true to your principles. That's more of a Strategic Manager thing, about a 470 level class.

With those facts in mind, how are you going to try to justify an obviously unjustified price spike just because Newegg has the rep to get some people before they really know what's going on? Technically, it's not predatory pricing, but it's just as outrageous as $3 bottled water after Hurricane Katrina. The only thing that's "dense" in this is your statement that people don't understand when they're getting it up the ass that it's just "market economics". The fact is that you can go find a 6600 SOMEWHERE at any given time right now IN STOCK for under $300 ANYWHERE else but Newegg. So, oh wise one, how in the hell is that market economics and not price-gouging???? Call a spade a spade and say what it is... it won't hurt... I promise.

Wow, quite the manifesto.
1. There are enough chips to meet the demand, but they are spread between a large number of retailers meaning each retailer has only a limited supply. Intel has a dominance in the market for "high-end" cpu's, just not CPU's in general. It has been a very nearly undisputed dominance for over a year. The reason for the price drops is simple, they are clearing inventory prior to the release of their superior 45nm processors. Also, I suspect they are seeking greater market penetration with their quad-core processors.
2. I never argued that everyone benefits from price-gouging (Profiteering is an entirely different matter, don't get definitions confused). In fact, I pointed out that only the people who really need or desire the product benefits, and even then only to a certain degree because of the increased price. But how exactly is it bad for the average consumer in this case either? As numerous people have already pointed out, there are other places with them available for less price. Is it really going to kill someone to spend an extra two or three minutes doing a google search and then surfing to a different site? Also, just because tray prices were reduced doesn't mean anything. All the stock they currently have in inventory wasn't purchased at the new tray price, were they? Also, it's worth noting that LONG BEFORE the price cut took effect, Newegg had lower prices than everyone else for some 3 weeks, constantly creeping the price for the Q6600 down. Also, I'm in agreement that such moves, though logical, are probably bad for Newegg's image.

Oil is an entirely different subject, completely irrelevant to the one at hand. It is, for one, a neccessity, and further, oil prices have no grounding in reality whatsoever. Like prices in the stock market, the price you pay for gasoline is based to a large extent on imagination. A 24 hour shutdown of a refinery could be a sign of bad maintenence procedures and future trouble from said refinery. This causes nervousness, which causes people to bid gasoline futures up, etc. etc.

Honestly, I think the situation with Newegg is because of a combination of factors.
1. They failed to anticipate demand for the Q6600 following the price drop and thus had insufficient inventory on hand.
2. Their fancy automated system noticed big demand and dwindling stock, and simply did what it always does.

Anyway, you can't compare a high-end processor to a bottle of water in a devestated city or a gallon of gas. That's just silly. There's no need for such consternation about this, they've been doing it with newly introduced products for YEARS. This is a different situation because it is a previously available product that suddenly had demand skyrocket, but the system operated in the EXACT SAME WAY. Everyone expects it when a new product debuts, but the situation changes somewhat and everyone is screaming bloody murder. I don't get it.

 

[caamsa]

Hmm... take out the words "civil emergency" and you have exactly what the Egg is doing. They are cancelling their existing orders at lower price points and telling people they were out when in fact they did have stock, but they were only willing to sell them at the higher price.

Oh, wait... I just looked up the definition in Wikipedia (YOUR SOURCE) and here it is: (link: http://en.wikipedia.org/wiki/Price_gouging)

"Price gouging is a frequently pejorative reference to a seller's asking a price that is much higher than what is seen as 'fair' under the circumstances. In precise, legal usage, it is the name of a felony that applies in some of the United States only during civil emergencies. In less precise usage, it can refer either to prices obtained by practices inconsistent with a competitive free market, or to windfall profits. In colloquial usage, it means simply that the speaker thinks the price is too high. Non-pejorative uses are generally in reaction to what the writer believes is an unjustified restraint on the market."

So... just so I got this straight, you're saying that if it's not legally chargable, that the term doesnt apply? Well, sorry for using it in the "less precise" usage category, Herb, but the definition still applies. You should READ your source before using it to bash someone... it's really ignorant and shows your arse.

BTW: this is one of the best topics on these forums right now. It really has an over-arching theme that I think that we'll see more and more in the future, therefore, I think that it's completely germaine to talk about. The business models that etailers use to determine pricing is VERY important to what we as enthusiasts encounter when making informed purchases. If a retailer has dropped the ball or is screwing people over by not honoring their prices, then that's just wrong... I don't give a rat's arse if it's legal or not.
If you don't like the thread, don't read it. We'll continue having an intelligent conversation for a change.

It does not change the fact that you are wrong. If NewEgg is doing this to everyone then where is the class action law suit? Hmmm maybe because it is legal. Now is it ethical is the question you need to be asking yourself.

If you call NewEgg and report this they will honor the lower price. There was already another post about this on this site. You seem to have a lot of energy why not take on some real bastards like the oil companies.

 

[killerb255]

ZipZoomFly went from 295 to 309 on the Q6600 today.

I'm glad I snagged mine from there yesterday.

In any case, although I don't agree with what Newegg has done, this is what happens in business. If they can make a little more money off of a hot item, they'll take advantage of the opportunity.

 

[DJ_Jumbles]

It does not change the fact that you are wrong. If NewEgg is doing this to everyone then where is the class action law suit? Hmmm maybe because it is legal. Now is it ethical is the question you need to be asking yourself.

If you call NewEgg and report this they will honor the lower price. There was already another post about this on this site. You seem to have a lot of energy why not take on some real bastards like the oil companies.

You're avoiding the issue: you said in your original post that I didn't know what price-gouging was. After you quoted Wikipedia as a bona-fide reference for the sake of your argument, I used it against you. There are different usages for the same term if you will read the article (stop and read it... this is NOT rocket science). I used it not as a legal term, but as a term to describe the system that they are using for pricing. Once again, here's the quote:

Price gouging is a frequently pejorative reference to a seller's asking a price that is much higher than what is seen as 'fair' under the circumstances. In precise, legal usage, it is the name of a felony that applies in some of the United States only during civil emergencies. In less precise usage, it can refer either to prices obtained by practices inconsistent with a competitive free market, or to windfall profits.
Ok, let's drop this down point by point (sorry for all the rest of you... I'm not letting this one go.):
1. I'm using the "pejorative" reference. It's not "fair" to me (or apparently a lot of other people on here) to charge more and more as your stock goes down and down when no one else is charging nearly as high of prices comparatively.
2. I never claimed that it was illegal. I understand the legal definition and it's not how I'm using the term.
3. Using the "less precise" model, I'm saying that they are determining prices that are CLEARLY inconsistent with the other competitors in their market and therefore, maxmizing their profits not due to market forces, but on an arbitrary model. I'm not saying that they might be onto something with their pricing model, who knows: it may be the way that pricing is determined in the future. But for now, it's not. Therefore, I can say that they ARE price-gouging IN MY OPINION. I never said it was illegal. See #2

If people want to pay the jacked-up price for the CPU, then so be it. Where the foul comes in is when you change prices after a consumer has placed their order, or worse, declining to sell to them at the reduced price because you arbitrarily decided to increase your pricing after the order was placed. Is it a class action? Maybe, but I don't see 100 computer nerdles getting pissed off enough to actually find a lawyer and sue. Since they can cancel their order, where are the damages to the plantiffs? There aren't any. Maybe there are... I'm not a sleazy class-action lawyer that has to make up crap just to get clients then sue the companies just to settle for a free Big-Mac for the litigants and $10 million for my firm's "expenses". (That's another thread).

 

[societysvillain]

All you people who make an issue out of this are morons... there's nothing illegal or immoral about making a profit off of customers who are willing to shell out money for products.

Illegal no, but immoral is a matter of opinion.

Newegg clearly has a choice. They can keep the prices fair but low and make a profit by selling as many of these chips as they can get. Or they can continually raise the price to find out how much money they can squeeze out of their customers without them going elsewhere. The latter might make a bigger buck today, but obviously has already turned some people sour to the company which normally gets nothing but praise. At any rate there is something to be said about ethics and how much they are worth. A lot of shoppers do take this kind of practice into account when shopping around.

 

[TechnologyCoordinator]

No complains when prices go down....
No complains when prices go down...
No complains when prices go down..
No complains when prices go down.

Damn right.. no complains.. what was your point again?

Actually, BaronMatrix complains.

 

[cb62fcni]

Actually, BaronMatrix complains.

Does he ever.....

 

[ben72227]

If people want to pay the jacked-up price for the CPU, then so be it. Where the foul comes in is when you change prices after a consumer has placed their order, or worse, declining to sell to them at the reduced price because you arbitrarily decided to increase your pricing after the order was placed. Is it a class action? Maybe, but I don't see 100 computer nerdles getting pissed off enough to actually find a lawyer and sue. Since they can cancel their order, where are the damages to the plantiffs? There aren't any. Maybe there are... I'm not a sleazy class-action lawyer that has to make up crap just to get clients then sue the companies just to settle for a free Big-Mac for the litigants and $10 million for my firm's "expenses". (That's another thread).

+1;

I don't have issue with NewEgg raising the price on the processor. If people don't like the price, they can shop elsewhere; this certainly isn't 'price gouging'.

You want real price gouging - look to the gas companies. Exxon may not have a monopoly, but they do have an Oligopoly, which is PRETTY DAMN CLOSE. As it stands right now, if you want to buy gasoline, there are *basically* only six choices of companies to choose from:

* ExxonMobil
* Royal Dutch Shell
* BP
* Total S.A.
* Chevron Corporation
* ConocoPhillips

And the price is virtually the same from all of them. There is no competition - they all conspire to keep the prices high so they can continue to make windfall profits. IMHO, it is the absolute worst business practice you can get away with legally (because of crony capitalism mainly ).

NewEgg is one of HUndreds of companies that sell processors. If their price is too high for you, go to ZipZoomFly or some other e-tailer. You HAVE A CHOICE here, so it's not like there's anything even remotely bad about it. Nobody is forcing you to buy from NewEgg - you can go to Best Buy, you can go to Comp USA, you can go to ZipZoomFly, you can go to Amazon, etc.

Now, having said all of that, I DO have issue with them changing the price of people who had either already bought the processor, or had put it in 'their cart' at one price, only to find out when they checked out the price had jumped up. THAT is illegal on many different levels - breach of contract, false advertising, and really it boils down to downright fraud IMHO. I don't know for sure if they did that or not, but if they DID do that, then THAT'S what you should be complaining about - not market supply and demand.

 

[topspeed]

To me it's simply a question of common sense. You don't increase prices after accepting an order. Period. It demonstrates how untrustworthy their prices and stock levels are and a total lack of regards of their clients needs.

A place like Newegg is huge and I'm sure there are some pretty smart people working there. They should have been able to anticipate the increased demand after a price drop like this. Was it a mistake? An isolated case? Maybe, but don't blame the client if they go somewhere else next time.