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View Full Version : Are Video Cards A Rip Off In NZ?



deanbo
27-10-2005, 03:40 PM
Just curious why a $429 US graphics card (ATI 1800 XL or $613 NZ) costs over a grand in this country?

bob_doe_nz
27-10-2005, 03:42 PM
Hi, and Welcome to PressF1

Heres my answer...
The cost to ship it over, advertising and increasing the price to make a profit from its sale. :2cents:

Metla
27-10-2005, 03:45 PM
Your wondering why a smaller(read, so tiny we are lucky to get any high-end video cards at all) market 6000 miles away has a larger price tag?

Biggles
27-10-2005, 04:02 PM
Economies of scale. It costs essentially the same to run a business here delivering goods to a potential market of a few hundred thouasand (at best) as it does to run the same business delivering to a bigger audience in Oz, or the US. And then, as Metla says, there's the shipping costs, etc etc. And of couse, if you are a huge US etailer, acting as a shop front for others without having actual warehousing yourself, your costs are low, your audeince large, and the competition fierce so that you put a low margin on the product and make your money through share volume.

NZ has many advantages but getting imported goods as cheap as you'll get them in the US is not one of them (unless, of course, you are an individual running a business out of your bedroom and using Trademe as your shop front ....)

bizzack
27-10-2005, 04:16 PM
haha... of course the price is gonna be higher in NZ, for almost everything...it's basic economics I guess... population size, value of the dollar, import costs etc... man, you should hear the prices my chinese friends get their gear for... it would make you cry... but atleast sometimes when they get their stuff through the mail, it's broken! that makes me feel a little better, but I'm evil! haha... :lol:

gibler
27-10-2005, 04:25 PM
Just curious why a $429 US graphics card (ATI 1800 XL or $613 NZ) costs over a grand in this country?

Because there are suckers who still pay that much for them.. :thumbs:

Nah, it is to do with the wholesaler intrastructure in NZ (i.e. it is poor).

Get someone in the US to ship it to you, but watch out for the GST that is liable.

DangerousDave
27-10-2005, 04:30 PM
Computer/electronics parts are an interesting product from an economics point of view especially in relation to New Zealand. Purchase Price Parity in theory would mean that prices should be equivalent, however they arn't for reasons stated above - in terms of electronics etc, because they are generally easier to ship, PPP should hold to a greater degree than a car. There is the idea that arbitrage will occur, where you buy it cheap in US/Asia and sell it here until an equilibrium price is reached (typically the NZ price would fall only as we are such a tiny market) and to a point that is what is happening with parallel importers and trademe is doing. Retail stores are already trying to meet parallel importers, bringing the price down closer to what it is in the states/asia.

Metla
27-10-2005, 04:33 PM
Looking at the available models, Only one wholesaler has brought them into NZ, so their is no competion futher up the supply line (meaning retailers only have the single source)

The price will level out as more range becomes available, Early adaters as always can expect to get hit hardest.

If you want to make a realistic comparison then pick a card that is easily available.

pctek
27-10-2005, 06:40 PM
And you all forgot buy price.
The more of an item you buy (wholesalers etc) the better the price you get it for. Not as much call for mega quantities of a particular itme here with our smaller population. And then when you take into account most of the PC owners are using rubbish internet boxes that probably wouldn't even have such an item - that leaves the gamers and a few others who would want a high end card. Even less of us.

Mr Wetzyl
27-10-2005, 07:10 PM
http://qmb.co.nz/p.aspx?104130
This Ati card don't cost a grand at QMB.

Battleneter
27-10-2005, 07:11 PM
ACTUALLY in one word yes.

Most Computer equipment is fairly similar once you do the conversion. HDD's RAM, CPU's MB's all similar prices in NZ compared to US, all ok

But high end video cards are a mystery, I just brought in a 6800GT from the states and it was $250 cheaper than anywhere else in NZ (I could find). Same with the higher cards, you can save $300+ on like a 7800GTX.

It is odd, but video cards are an anomily and population does not have anything to do with it, otherwise the other equips would have a similar prob.

deanbo
27-10-2005, 09:05 PM
ACTUALLY in one word yes.

Most Computer equipment is fairly similar once you do the conversion. HDD's RAM, CPU's MB's all similar prices in NZ compared to US, all ok

But high end video cards are a mystery, I just brought in a 6800GT from the states and it was $250 cheaper than anywhere else in NZ (I could find). Same with the higher cards, you can save $300+ on like a 7800GTX.

It is odd, but video cards are an anomily and population does not have anything to do with it, otherwise the other equips would have a similar prob.

I'm glad I didn't miss your post (page 2), I was beginning to think I was alone in my thoughts...

Metla
27-10-2005, 09:35 PM
High end video cards are made and sold in smaller numbers then just about any component, they struggle to meet demand following the product lauch in the states, any you see apear here are bought over at the expense of the larger market that they should be trying to keep happy. How do they make it worthwhile?, they have to charge more.

Doesn't take a brain surgoen to figure it out.The cards are hard to source, especially the top-end brands.Not only now but right through their shelf life.

Then you see plonkers selling the crap for $20 markup.

Then the people who probally never inteded to spend the money in the first place start complaining.

Metla
27-10-2005, 09:36 PM
http://qmb.co.nz/p.aspx?104130
This Ati card don't cost a grand at QMB.

That card isn't even the same generation let alone a similar model.

JJJJJ
28-10-2005, 05:59 AM
Why stick to video cards. The biggest racket of the lot is with CPU's. And it has been since the first PC was sold about 20 years ago.
Intel brings out a PCU, with all the fanfare and talk about how great it is and how it will meet your computing needs for the next 100 years.we all flock in to buy the wonderful new processor.
Then when the market is saturated they suddenly announce another CPU that is the greatest ever with the same performance all over again.
We believe them and rush in to buy the new "wonder processor"
Look at how many CPU's "improvements" that have come out, one after the other. 286's 386's 486's pentiums. And look at the small steps in performance between them.
Consider the Pentium 4. Consider the number of steps it took to get from about 2 mhz up to about 3.8. You will never convince me that they couldn't have produced the 3.8 the same day they released the 2.0.
Now they are starting again with their double layer cpu's. Same performance again!
Then to keep their other departments in business they put a few extra pins on the CPU so we have to buy new motherboards.

And don't even think of bleating about R&D. Most ,if not all, the R&D was done before a new range was released.

Anothe joke. Remember how , not long ago, FSB speed was the wonder selling point. Now everyone is on the fsb waggon they decided it is not realy important at all. Almost forgotten about.

What is realy annoying me at the moment is that the graphic card makers are on the same path. Small improvements at a high price. Then same again next month.
Today you can buy a 6 month old motherboard, a cpu and a gig of ram for a lot less than the price of the latest video card. And of course in six months time this graphics card will be in the bargain bin.

Metla
28-10-2005, 09:04 AM
More fool you if you purchased every CPU upgrade released, or were sucked in by marketing.

As for Intel, Haven't used one since the P3 450.

JJJJJ
28-10-2005, 10:14 AM
More fool you if you purchased every CPU upgrade released, or were sucked in by marketing.

As for Intel, Haven't used one since the P3 450.

I might be silly, but I'm not stupid

Battleneter
29-10-2005, 02:22 PM
High end video cards are made and sold in smaller numbers then just about any component, they struggle to meet demand following the product lauch in the states, any you see appear here are bought over at the expense of the larger market that they should be trying to keep happy. How do they make it worthwhile?, they have to charge more.

Doesn't take a brain surgeon to figure it out.The cards are hard to source, especially the top-end brands.Not only now but right through their shelf life.

Then you see plonkers selling the crap for $20 markup.

Then the people who probally never inteded to spend the money in the first place start complaining.


I think your comments about the HIGHEST end cards is pretty much spot on, and no arguments there, However I think your on the wrong track slightly.

If you look at me for example, only 3 few weeks ago ish, I brought in a 6800Gt 256MB for NZ$358 and $NZ$40 freight to my door ($398).

The 6800Gt is over a year old (now considered mid range) and there is certainly no supply issues. The cheapest (at the time I could find in NZ) was a Gigabyte 6800GT for $520+GST "wholesale" and not in stock. My company does not bring in video cards itself.

I think there is some hefty price markups in NZ, even after taking into account of freight and volume. If you go to like a Nvidia 7800GTx (no supply problems overseas) the difference can be NZ$400.

What ever excuses aside, they are overpriced here and I recommend people to buy offshore, (taking into account the extra warranty headaches if something goes wrong), its still worth it.