NVIDIA Dictates Advertised Video Card Pricing

I see this as yet another sign...a reason...for me to buy yet another ATI product when I wanted to buy nvidia.

It's happenned three times now! Not once but TWICE I had nvidia's latest card actaully ordered, and, waited three months and still no card, so ATI came out with a competing card I could actually get, so I bought it.

So now, I feel the need to upgrade, I wanted a 9800GX2, now a 280, then bam...WTH? nvidia trying to piss me off here?

I think this is a crock of shit and I will damn sure let the nvidia employees that I know hear what I think about it.

nvidia is just plain stupid on this one.
 
nilepez said:
So exactly why did you quote me? I coudln't find anything in your post that addressed my post. Did you just randomly check off a couple of messages to quote before you started typing?

Here's a clue, oh clueless one, not one of the items you listed is a component manufacturer. Logitech doesn't set the prices for other HID manufacturers. Linksys doesn't either. What's more the chipset maker (the brains of that linksys router) doesn't tell Cisco what price retailers can advertise Linksys routers.
Click to expand...

gibber said:
Can you understand this: we don't like it. Got that? Ok. We're the people that tell other people what card to buy. We're the people that talk on forums. We're the people that ARE "word of mouth". Again, so, other companies do it too, do we like that? No. So how much do we put up with corporations doing things that we don't like? They exist for us, not the other way around. If we don't like a company's products, services, or policies, then, it should either A) Change or B) Go out of business. Surely, I'm not the only one who's sick of companies dictating to us what the rules are, so, now's as good a time as any to start voting with our wallets, eh?

Again: I will not buy Nvidia products until this policy is changed. That doesn't make me lazy, that doesn't make me dumb. It simply means I'm putting my money where my mouth is and not just BSing hot air. :D
Click to expand...

Intel tells Dell what they can put in their Intel co-op advertisement, or they don't get f**king ad dollars. Get it genius? Same thing with AMD, Nvidia, ATI, Chevy, Ford, *name the f**king product where ad dollars change hands*. You guys really don't get it, do you?

I'm going to put this in really, really tiny words for you:

All people that sell things, and provide ad dollars, do this. Some of it even more "anti-consumer" than the Nvidia stance here. Dell receives quite a bit more leeway, but they don't release an Intel supported ad without Intel saying "this is fine." Do you understand now? You're local Chevy, Toyota, *name the car company*, dealer doesn't get their ad dollars without following the rules. Heck people, you'd better check out what you're buying at the grocery store or Sam's (Commie) Club / Socialist-Mart (Wally world) because odds are ad dollars changed hands their too. You'll notice (to prove a point) that the PS3 on sale at Walmart is listed for 399$ plus a 100$ gift card for free, and not 299$ after 100$ gift card (the wording is a bit messed up in my version, but you can do it that way).

So I guess you'd better stop buying ATI, AMD, *name the f**king product manufacturer that gives out ad dollars* until they change their minds too. I'll give you a hint: You're gonna have a tiny shopping list.

The sky is falling, the sky is falling! Somebody call the FTC! The Nvidia UMAP isn't written in a manner that hides what's going on! Don't you see that is what the difference is? Most of the time you never get the choice to see it.

All Newegg had to do here was relinquish the advertising co-op dollars. They chose not to, and therein made themselves contractually obligated. My former company runs ads all the time that don't meet one spec or another for a manufacturer (usually Intel or AMD) and relinquishes those ad dollars to sell how they want. While it costs more, they can run the ad they want. Web advertising is a bit funnier, handled a bit differently (instead of on a per ad basis), but for that I guess it just sucks to be new media.

--edit

Just to clarify my point:

Newegg told NVIDIA to “go pound sand,” or at least that is how it was communicated to HardOCP.com, then when NVIDIA threatened to cut off marketing funds paid directly to Newegg, the company changed its tune and followed the policy.
Click to expand...

Newegg made a choice, they didn't have to do this, go pound sand.

--edit 2 for nilepez

I doubt broadcom (just to use the name of a company that makes networking chips) provides Cisco/Linksys or anyone else with advertising dollars. Nvidia and ATI are kind of odd ducks that way, they promote the chips just as much as the final cards. They also produce reference cards, blah blah. Really it comes down to those advertising co-op dollars and whether you're willing to give them up.
 
Not to put down other online retailers, but Newegg is freakin' huge! If I were in charge of newegg, I would tell nvidia to go fuck themselves, and tell them that if they piss me off too much I will promote ATI on my home page. Just my two cents...:mad:
 
If any of these retailers had any balls they would tell nvidia to back off, and in the event nvidia retaliated, by cutting shipments, they would inform their customers of this on their front page. After all Its not defamation if its true.
 
Inglix_the_Mad said:
...The sky is falling, the sky is falling! Somebody call the FTC! The Nvidia UMAP isn't written in a manner that hides what's going on! Don't you see that is what the difference is? Most of the time you never get the choice to see it...
Click to expand...

1) We don't like it.
2) Just because "everybody else does it" doesn't mean we have to accept them doing it too, does it?
3) Nvidia has recently made this change, NOW is the time to voice our disapproval ~ kind of like "speak now or forever hold your peace".
4) In this case, we CAN exert an influence, we can buy ATi instead of Nvidia, and, we can TELL Nvidia that we did so, and why we did so.
5) We can't change all the bad policies of all the companies at once, we can try to change one companies one bad policy now, the time is right.
6) Ralph Nader for president!!! Sounds like a dumb joke, I know, no chance of him ever getting elected, right? But, just imagine how much better off we would have been with him instead of Bush ~ he would be INSANELY GREAT compared to our current pathetic un-American criminal POS POTUS we currently have.
 
Just had a "live chat" w/Newegg to let them know we don't like this "add to cart to see price"/UMAP policy, said they will get the message to the appropriate person...
 
To nVidia: I don't really need an extra 5 -10 fps on my games... You can't afford to piss me off, 'cause I'll go with AMD in a sec...

To AMD: This is your chance, my loyalty is for sale. You don't have to make a better performing product, just win me over as a consumer...
 
To "Inglix_the_Mad" :

Yes, many companies bully others into doing what they want, but its usually the BIGGER company in a particular market that does this. nVidia does it, but not AMD GPU division, because nVidia has a larger market share on enthusiast GPUs... Same goes with Intel and AMD. Intel is one of the biggest offenders. They use their power to stay on top with dirty tatics. As consumers, we should do our best to stop this behavior...
 
LeviathanV said:
To nVidia: I don't really need an extra 5 -10 fps on my games... You can't afford to piss me off, 'cause I'll go with AMD in a sec...

To AMD: This is your chance, my loyalty is for sale. You don't have to make a better performing product, just win me over as a consumer...
Click to expand...

Is it any coincidence that ATI released the 4850 early? There you go: get a 4850, be happy.
 
gibber said:
1) We don't like it.
2) Just because "everybody else does it" doesn't mean we have to accept them doing it too, does it?
3) Nvidia has recently made this change, NOW is the time to voice our disapproval ~ kind of like "speak now or forever hold your peace".
4) In this case, we CAN exert an influence, we can buy ATi instead of Nvidia, and, we can TELL Nvidia that we did so, and why we did so.
5) We can't change all the bad policies of all the companies at once, we can try to change one companies one bad policy now, the time is right.
6) Ralph Nader for president!!! Sounds like a dumb joke, I know, no chance of him ever getting elected, right? But, just imagine how much better off we would have been with him instead of Bush ~ he would be INSANELY GREAT compared to our current pathetic un-American criminal POS POTUS we currently have.
Click to expand...

1) Go b*tch at Newegg for not giving up the Advertising Co-Op dollars mate. A much smaller company that I used to work for did it all the time to advertise how they wanted. Or are you just conveniently ignoring that now?

2) Well if I'm paying you 500$ to advertise my product, I'm going to get a say in how it's done. You don't like that. Well then super-genius, don't take my money.

3) Nvidia recently started enforcing this. This may be a new marketing guy, but Eric made sure my former employer's marketing guy knew the green machine's rules.

4) Then you are supporting AMD / ATI's use of this, and theirs is much more stringent (if AMD put their standards over ATI's). I take it you like cutting off your nose to spite your face?

5) Good luck with that. See the comment about "my money" helping to pay for your ad.

6) Tangent not worth responding to in this forum (non-technical)
 
LeviathanV said:
To "Inglix_the_Mad" :

Yes, many companies bully others into doing what they want, but its usually the BIGGER company in a particular market that does this. nVidia does it, but not AMD GPU division, because nVidia has a larger market share on enthusiast GPUs... Same goes with Intel and AMD. Intel is one of the biggest offenders. They use their power to stay on top with dirty tatics. As consumers, we should do our best to stop this behavior...
Click to expand...

*snicker* you really believe that, don't you? AMD/ATI the angels of the technical world that never do this?

Funny thing is, AMD had more stringent rules than Intel as far as ad content went. Then again, Intel's requirements were more onerous as to percentage. I was down the hall from our marketing guy and got an earful about all of them. I'm guessing now, but since ATI was purchased by AMD, I'm wagering their co-op program has been "upgraded." *snicker*

Demonize Nvidia all you like, all Newegg had to do was "Just say No!" to advertising co-op dollars.
 
Inglix_the_Mad said:
1) Go b*tch at Newegg for not giving up the Advertising Co-Op dollars mate. A much smaller company that I used to work for did it all the time to advertise how they wanted. Or are you just conveniently ignoring that now?...
Click to expand...
Of course I've done that already. I chatted w/NewEgg and let them know I wouldn't be buying any other Nvidia products because of the annoying "add to cart to see price" UMAP BS, I also advised them that they should take a look at the thread over here on the [H]ard Forum.
 
I may have missed it in the thread, but how does this work at retail outlets like bestbuy? Do you have to take an item to the cash register to get the sale price? Can they put sale prices in circulars?
 
Nenu said:

Why they are doing it isnt my concern and I dont think your argument stands either.
Once the card has gone to retailer, NVidia have been paid.
Why should it matter to them what its sold for after.
Click to expand...

It matters to nVidia to work with upstanding members of the business community. If you buy NV card from some fl-by-night etailer who, after the cards dies within the warranty, won't return your email (and doesn't have a REAL phone number), are you going to be pissed at yourself for being a price-whore? Or are you going to be pissed at the etailer, the card manufacturer, and eventually at NV itself? (Be honest now)

If its after sales service, you have made 1 good point but you didnt stress it that way.
Click to expand...

Indeed.

You have taken a too simplistic approach, nobody buys just on price.
Click to expand...

Really? Now who's being simplistic?

I (and everyone i know) choose the card I want given that it will have the performance I need a around the price point I can afford, this is my primary criteria. I then search for the best price.
I buy only from trustworthy retailers and will pay more for that security. Its not all about price, performance and the supplier are just as important.
Click to expand...

Then what's your problem? MAP policy is designed to help those businesses that fork out for things like warranty support, a website that works and is easy to work with, and a phone number with a live person on the other end. It protects them from Joe Smith who bought something off the back of a truck and set up a website selling out of his trailer- who doesn't care about you or the product.

If I find it hard to buy NVidia products there is another player in the field I can buy from and NVidia shouldnt be so arrogant as to ignore this point.
Click to expand...

Another player? You mean Matrox, right? GO PARHELIA!

AMD has yet to show that they can produce something that can knock NV off. When that changes, your statement might be a bit more valid. (God I hope that change comes soon- SOMETHING has got to get going for that company)
 
scooter_mcgilicuddy said:
These are all settled issues. MAP policies have been around for years. The Leegin decision simply allows more leeway in how they are enforced. Before, you had unilateral "Colgate" policies that allowed a company to dictate MAP pricing, but the company had to be vague when they decided to enforce the policies. In Leegin, the court acknowledged that there are legitimate reasons for why a company would want to control pricing, and that such companies should be allowed to do so as long as the companies were not doing so for purely anti-competitive means (e.g., to push competitors out of the market). All of this talk of "price fixing" is apples-to-oranges, and out of context.

The legitimate reasons the court referried to include protecting brand equity and channel stability. The value of most modern companies is a sum of their brand equity (ability to charge premium prices over what a generic version of the product would earn), and its established marketing channels (value of the time and effort taken to develop relationships with different types of retailers). Wide price swings dramatically disrupt both for reasons well beyond the scope of this reply. But to summerize, a company that cannot protect its margins for its retailers, will not survive very long. Those who do, become successful for the long term (Apple's iPod, Bose, Sony PS3, etc.).

A retailer MUST bring something to the table to "earn" the margins it gets when it sells a product. Being the "low price leader" does not count. That is the single WORST strategy a retailer can have. If you look at what the public perceives as the low price leaders, most really rely on competencies other than being the low price leader, and instead "hide" price premiums throughout their product mix, with only specific, strategic products being absolute low prices. A manufacturer should not even want to have a retailer sell its products if the only value it brings is "low price". The retailer must "earn" its margin through customer support, product support, product expertise, merchandising expertise, logistical expertise, etc.

Newegg is an excellent retailer. The do have low prices on many products. But many are NOT low prices--just normal selling price. Newegg "earns" its margins by providing superior customer service and a superior shopping experience.

Retailers may complain, but they actually like being told what price to sell at--provided other retailers don't cheat. Retailers cannot survive at low margins--they want to be able to make as much margin as possible for a product. But most companies may try to set MAP, then don't follow through to make sure everyone abides by MAP. And no retailer wants to be the only guy holding the line at MAP while the rest of the world is beating them in price.
Click to expand...

I absolutely agree, especially on the parts in yellow. As someone who works in sales, I deal with this issue every day- a customer buys something, it breaks, they need it fixed under warranty, the place they bought it from won't call them back, they want me to fix it, manufacturer says I can't, all I can do is tell them to keep calling the supplier. If they had bought it from me, I could have helped them by, you know, actually answering the phone. But they (or their boss) went to the cheapo place and expected the same type of service that makes my prices higher.

Prime reason why I do my shopping at the Egg. I see that the prices are higher- but I don't care, because I know what I'm getting.
 
QuakerOatz said:
Originally Posted by scooter_mcgilicuddy
Being the "low price leader" does not count. That is the single WORST strategy a retailer can have.
Click to expand...
Do tell why?
A manufacturer should not even want to have a retailer sell its products if the only value it brings is "low price".
Click to expand...
Ummm Do tell why? Sure this is your super awesome opinion on what YOU think a manufacturer SHOULD do, but... back it up
Click to expand...

Ummmm... when was the last time you shopped at Monarch?
 
Well, if I ever buy a video card in the future it will be ATi. This whole dilemma sort of reminds me of when my gas tank nears empty, and I start attempting to guess what the oil companies have set the gas prices at for that day.


Just gotta love large corporations...
 
keefusm said:
Well, if I ever buy a video card in the future it will be ATi. This whole dilemma sort of reminds me of when my gas tank nears empty, and I start attempting to guess what the oil companies have set the gas prices at for that day.


Just gotta love large corporations...
Click to expand...

So you're ok with AMD/ATI doing this as long as the memo doesn't get published?

GuinnessBrilliant.jpg


I love it when people support a system they at the same time disavow.

I learned about this stuff long ago, and lost my indignant attitude about it. I got over it by assuaging my guilt with the fact that I wasn't going to change anything by picking the other side doing the same things.

If I buy a 4850 or 4870 (probably the 4870 if I get one, we'll see how the test scores fair) it'll be on technical merits not some half-baked sense of "sticking it to the ebil corporation."
 
LightingGod said:
It matters to nVidia to work with upstanding members of the business community. If you buy NV card from some fl-by-night etailer who, after the cards dies within the warranty, won't return your email (and doesn't have a REAL phone number), are you going to be pissed at yourself for being a price-whore? Or are you going to be pissed at the etailer, the card manufacturer, and eventually at NV itself? (Be honest now)
Click to expand...

Why would I be pissed? Last time I checked, warranties were from the OEM, not the retailer.
If you mean an extended warranty, that's got nothing to do with MAP.

What's more, if some store actually did provide such a service, it'd be something that the individual buyer would have to weigh into their decision of what to buy, not unlike how many may pay a bit more for an EVGA card, because of the superior warranty and step-up program.
 
LightingGod said:
I absolutely agree, especially on the parts in yellow. As someone who works in sales, I deal with this issue every day- a customer buys something, it breaks, they need it fixed under warranty, the place they bought it from won't call them back, they want me to fix it, manufacturer says I can't, all I can do is tell them to keep calling the supplier. If they had bought it from me, I could have helped them by, you know, actually answering the phone. But they (or their boss) went to the cheapo place and expected the same type of service that makes my prices higher.

Prime reason why I do my shopping at the Egg. I see that the prices are higher- but I don't care, because I know what I'm getting.
Click to expand...

And why are they calling the retailer for warranty work? If my HD breaks, I call WD. If my video card breaks, I call ATI, or Sapphire or EVGA. If my CPU dies, I contact Intel or AMD.

The only exception to this is if it breaks within 30 days...and even then I could deal directly with the manufacturer.

I've bought stuff from Newegg, and last time I checked, direct replacement with them, after 30 days, generally meant paying a fee for that service, which is over and above the sale price.
 
deeznuts said:
Or .... you could get the damn price yourself and be the one finding it out.

Is everyone here complaining that they will now have to work a tiny bit harder to get a product cheaper than someone who walks into best buy and buys a component?

Grow some fucking nuts everyone. You all want some cheese with that whine? Do a little work. You want easy? Go into Best Buy. You want cheap? Do some work. nvidia is here to extract as much money as possible from everyone in the world. your goal is to spend as little as possible. earn it. don't expect it on a silver platter.

"Oh noes I gots to click the little link to see what the price is. Woe is me."

This is not a new or novel concept. Anyone who's purchased audio components will tell you.
Click to expand...


Maybe you should go back and read from my original post. It was someone else who suggested it was easy to get a price from a forum, I was responding to them.

My stance is if I can not compare products AND prices easily online for components while shopping to build pcs, then I will shop from the ones I can. If I am comparing video cards for a customer should I have to go to the extra steps just to buy a Nvidia product? No in business time is money.

Whether this is a new concept or not...to be honest I don't really care. It's not how I've had to deal with purchasing products online, and if I have the option to purchase without going this way I will do so. That will mean without Nvidia products.

As for the nuts...I think my husband might object to me having those. ;)
 
LaChupacabra said:
This really isn't anything new. nVidia has certain costs and they are trying to maintain the perceived value of their cards. Unilateral pricing is done to keep people buying cards consistantly. Imagine if you see an amazing deal on an 8800GT in a [H]ot deals thread for 129.99, but don't have the cash to buy it. Once you save up 130 bucks for it and you cannot find it for that you will either wait for it to fall to that price again or buy a different product. It hurts margin and without margin we get no innovation.

But just because it makes a sort of sense doesn't mean the Green Team isn't turning...Red? :D
Click to expand...

Your analogy doesn't follow the principles of Economics. "Computer Upgrades" definitely fall into the category of Non-Essential Goods. And in order to sell "Non-Essential" goods, especially in an economic recession, you have to lower prices and take less of a margin, if you want to continue to make a profit overall.

In fact, the principle of "Price Elasticity Gain", states that by lowering prices you can actually sell more products. And once you reach the right "price point" for the market, you'll make "more Profit" even at lower margins. The end result is that a company can make much more profit by lowering prices than they can by keeping prices high.

So on one hand I'm sort of glad that Nvidia is doing this... This will give ATI an opportunity to sell more of their HD 4800s, because they aren't trying to gouge customers. And don't think that just because "You" can afford a $650 graphics card upgrade every 6 months, that others can do the same. Personally I bought a pair of discounted 8800GTs, and high quality P/S, for about what I'd pay for a single GX2. I might have bought a pair of 4850s, but I don't care for the one Intel Chipset board I have that supports CrossFire, and the primary game I'm playing atm has better support for Nvidia cards.

One quick note: the price that I paid for these 2 video cards was not the "Advertised Price". However, the "Advertised Price" was clearly marked out so you had to click on a link to see the "final Sales price". It seems to me that NewEgg has been doing this for a variety of products, and not just Nvidia graphics cards. I don't care what "policy" they implement, because I will find the lowest price on the products I want, or I won't spend my money! And yes!, I'm a royal cheap skate... :D
 
That ATI 4850 is looking much more attractive. Thanks, NVIDIA for making my decision easier.
 
Not being able to easily see the prices while shopping is retarded. What is this? It's like shopping for a fucking car, which I hate because you have to ask a damn salesmen for a price every time you're interested in something. :mad:
 
Inglix_the_Mad said:
I can't stand Zalman either. Never buy another Zalman cooler! If you hate UMAP that is.

/people are foolish
Click to expand...

So which products that aren't manufactured by Zalman are controlled by Zalman?

Do they control Arctic Cooling's prices? Do they set the price Thermalright?

Oh wait, they just set the prices of their own products! I may not like it, but it's not the same thing.

It's not the same as Intel controlling the content of an ad that they in part pay for. Why? Because intel isn't setting the price of a 3rd party.

Nvidia is. Listing the price of your product in your store is not advertising. If this was about an actual advert, which Nvidia apparently pays for in part, I'd be more sympathetic, but that's not the case.

Then again as you (or was it someone else) said earlier, they could jsut turn down Nvidias money.....assuming said ads are promoting nvidia products, I'm not clear why Newegg cares. Advertising that they have nvidia is a pointless ad, since anyone who's shopping online likely understands that they carry just about everything.....the only thing that'd matter is if name recognition, and I assume Nvidia isn't paying for ads that say shop at Newegg, "we sell computer stuff."

IMO, the most important driver of sales is Pricegrabber (or similar search engines).
 
Is there a good side to this? Does this policy also dictate a "maximum" price to prevent etailer "price gouging" when a product is new and in short supply?
 
Boo’s for Nvidia. Not a good business decision that could be made by any company. They are going on a power trip, imo. More power to Ati and their new and upcoming video cards. I will be looking to purchase one;)
 
gibber said:
Is there a good side to this? Does this policy also dictate a "maximum" price to prevent etailer "price gouging" when a product is new and in short supply?
Click to expand...

Have you read any of this, at all? It's not a price minimum. It's a price advertised minimum. Retailers can still sell for what they want.
 
I don't understand what people's problem with this is. Nvidia is just protecting their marketshare to stay competitive. All I noticed was cheaper products that are more uniformly priced.

Like, "Oh noes, nvidia sets prices for their own video cards!?" Do you guys even listen to yourselves?
 
Didn't Intel try pulling the same trick years ago, and got their hands burned in the process by most of the countries trading standards organizations hauling them to court?
 
Good lord. I can't believe this thread is still alive.

I feel like I just explained the concepts of thunder and lightning to some little kid, only to have that kid then ask me about the color of bowling balls used by the angels when the bowl.

Cannydog, I at least can respect you for getting your econ concepts right. These econ principles are correct in general, but are a bit theoretical in application though. As I mentioned earlier, channel management and brand equity concepts are more directly relevant here. Companies are better served by maintaining margins during an economic downturn--the ones that retain the most margins across the board come out of the downturn in better shape. I agree that you may see more specific "sales" (i.e., promotional discounts) in order to boost sales volume at points, but lowering price is a strategy of last resort.

What is more relevant is what ATI will do to NVIDIA if ATI can offer comparable performance at drastically lower prices. Econ principles (ala Cannydog) will definitely come into play, to the benefit of ATI. This is the long term economic equilibrium that will result: if one manufacturer is charging too much for the market to bear, eventually competitors will spring up and force the manufacturer to lower prices or come up with new lower priced models. NVIDIA's biggest mistake here was not implementing this MAP policy 18 months ago.

These are well-settled concepts, and no, they won't result in substantive decline in market share for NVIDIA, regardless of threats. This is what is done in most industries, across the board. I am sure that doesn't "make it right" in the eyes of consumers, but its existence as acceptible/recommended business practice is without question. Once again, I am calling it as I see it, and hopefully removing any mystery left in this.

Now how do I turn the "thread notification" feature off....
 
Inglix_the_Mad said:
If I buy a 4850 or 4870 (probably the 4870 if I get one, we'll see how the test scores fair) it'll be on technical merits not some half-baked sense of "sticking it to the ebil corporation."
Click to expand...
Wow, a breath of fresh air from this sea of stupidity. At least someone is thinking clearly.


Nenu said:
hedron said:
I don't understand what people's problem with this is. Nvidia is just protecting their marketshare to stay competitive. All I noticed was cheaper products that are more uniformly priced.

Like, "Oh noes, nvidia sets prices for their own video cards!?" Do you guys even listen to yourselves?
Click to expand...
Did you even read this thread? :rolleyes:
Click to expand...

Have you even read this thread? Nenu has a point. I would explain it further but he and Inglix already did so several posts ago. It's unfortunate people ignore what they don't want to read.
 
Nenu said:
Did you even read this thread? :rolleyes:
Click to expand...

I'm not reading a 14 long page thread. That is a complete waste of my time. I have much better things to do and read. I mearly skimmed enough to know that the majority were bitching about nvidia setting its own prices.
 
hedron said:
I'm not reading a 14 long page thread. That is a complete waste of my time. I have much better things to do and read. I mearly skimmed enough to know that the majority were bitching about nvidia setting its own prices.
Click to expand...

lol
Clearly you spoke from an educated viewpoint then :rolleyes:
You have already wasted "your" time but it did demonstrate to us that your future posts should be ignored :)
 
scooter_mcgilicuddy said:
Good lord. I can't believe this thread is still alive.
...<snip>...

... These econ principles are correct in general, but are a bit theoretical in application though. As I mentioned earlier, channel management and brand equity concepts are more directly relevant here.
Click to expand...

I'm sorry to say this but Economic Principles may seem "theoretical" to you because of your training, but that does not make them less "relevant". I'll assume, since you mention "channel management" and "brand equity" concepts, that you might even have an MBA. And I think that you would realize from your own experience that "Economics" courses tend to be lower division course work. And once someone starts Business Administration courses they are taught a completely different set of ideas. Where the two subjects differ sharply are 1. immediate scope, where BA is concerned with allot more incidental factors, and 2. predictability, where Economics is far more accurate in forecasting financial outcomes of Management choices.

And I'll just point out that the one Economic "Principle" which I mentioned predicts "consumer behavior" based on the overall condition of the market as a whole. This prediction is highly accurate, and the few exceptions don't disprove the rule. It's just that there are some consumers who will behave contrary to their own best interests, for a variety of factors. But the percentage of those is very small, and no amount of wishful thinking (on the part of any companies management) will change the outcome.

scooter_mcgilicuddy said:
... Companies are better served by maintaining margins during an economic downturn--the ones that retain the most margins across the board come out of the downturn in better shape. I agree that you may see more specific "sales" (i.e., promotional discounts) in order to boost sales volume at points, but lowering price is a strategy of last resort.
Click to expand...

Economics disagrees with you, but that's ok.

scooter_mcgilicuddy said:
What is more relevant is what ATI will do to NVIDIA if ATI can offer comparable performance at drastically lower prices. Econ principles (ala Cannydog) will definitely come into play, to the benefit of ATI. This is the long term economic equilibrium that will result: if one manufacturer is charging too much for the market to bear, eventually competitors will spring up and force the manufacturer to lower prices or come up with new lower priced models. NVIDIA's biggest mistake here was not implementing this MAP policy 18 months ago.
Click to expand...

I suspect that Nvidia has tried to implement this type of "channel management" in the past and not been successful. And the only reason why they aren't charging far higher prices is because ATI keeps selling "semi-competitive" products at lower price points. The irony is that AMD/ATI are being forced by circumstances to pay attention to Economics. Nvidia continues to function under the delusion that it is immune.

scooter_mcgilicuddy said:
These are well-settled concepts, and no, they won't result in substantive decline in market share for NVIDIA, regardless of threats. This is what is done in most industries, across the board. I am sure that doesn't "make it right" in the eyes of consumers, but its existence as acceptible/recommended business practice is without question. Once again, I am calling it as I see it, and hopefully removing any mystery left in this.
Click to expand...

This may be standard practice "in most industries", but the concepts upon which those practices are based is far less "settled" than you might imagine. Now I was never trying to comment on whether this was an acceptable business practice or not. I was only trying to point out that consumers can be counted upon to act in what they perceive to be their own best interests. And this move doesn't encourage "good will" among Nvidia's potential customers.

scooter_mcgilicuddy said:
Now how do I turn the "thread notification" feature off....
Click to expand...

Go to the "User CP" and find this thread among those you're subscribed to, then click the link (below the thread Title) to Unsubscribe. :)
 
You must log in or register to reply here.
Back
Top