Price gouging

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l88bastard

l88bastard

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Yea yea I know supply and demand, blah, blah, blah I have a degree in economics I get it but comon. Look at how ZZF just blatantly is socking it to the consumer here while the egg is holding steady. Thank God ZZF only sells electronics and not some vital product like water!

ZZF 5870 prices
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Newegg prices
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Be nice if ATI and other company's would step in and not allow this to happen.
 
i notice the xfx is higher then the others to because that is one of the most popular brands. it will get worse before it gets better!! im sure.
 
l88bastard said:
Yea yea I know supply and demand, blah, blah, blah I have a degree in economics I get it
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Are you sure? Cause it doesn't seem like you do. Otherwise what is the point of this thread?

Also, higher than MSRP prices != price gouging. Price gouging implies something illegal, for instance either significantly raising prices during a civil emergency or circumventing the free market (eg price collusion between competitors).
 
Can you blame them for gouging when people keep snapping them up as soon as they're in stock? You should redirect your anger towards the people who keep buying them anyway...
 
Well, ZZF was great back when I bought my first 8800 ultra. I got it for $600 from them when they were selling for well over $1,000 on amazon, newegg, etc. ZZF was like the best kept secret for video cards back in '07

They also gave me an awesome deal on two GTX285s, but I was left with a sour feeling once I found out that they automatically enrolled me in a $12 a month rip off rewards scam that automatically deducted money from my credit card each month when I bought those two cards from them! And now I see that they are taking advantage of the consumer with the 5870 situation.....blatantly.

Yea some will argue supply and demand, but it is just blatant this time.

FU ZZF!
 
Im happy that they're able to jack prices. I wont pay the price, and I'll gladly wait for the demand to go down before I buy my next card -- but Im happy the demand is high. It means PC gaming is thriving.
 
Blazemore said:
Be nice if ATI and other company's would step in and not allow this to happen.
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Really? Even if it was possible would it really be nice if a company stepped in and didn't allow YOU to sell the things you bought at the prices you wanted to sell them for?
 
it's not just zzf / the local microcenter here has the xfx 5850 for $330 - all the other brands are $280
 
im in no hurry i can wait. im just curious how high they will go before they start going back down again to what they were at launch.
 
Itchyeyes said:
Are you sure? Cause it doesn't seem like you do. Otherwise what is the point of this thread?

Also, higher than MSRP prices != price gouging. Price gouging implies something illegal, for instance either significantly raising prices during a civil emergency or circumventing the free market (eg price collusion between competitors).
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Well somebody sounds like a draconian day trader with a little bit of legal reading under their belt.

Look I have no problem with people taking advantage of the scarcity of the product and turning around and selling it on EBAY for a higher than normal price.

But this is a retailer, that gets them at wholesale cost and is fleecing the consumer while other retailers are not adding on such a high markup. Yes, they can also capitalize on the supply and consumer weakness, BUT IT DESTROYS THEIR GOODWILL. I look at them now and go FU scumbags, your not the only bastards that sell electronics, so I will take my business elsewhere because you love to bareback the consumer!

And no, I am not mad, I got my 5870. But if idiots are willing to pay extra let em give it too the dirtbags on ebay that do this kind of shit.

A major retailer should try and carry a better image of themselves than this.
 
manufacturer SUGGESTED retail price. They can sell it for whatever the market will pay. Either pay it, wait, or shut up about it.
 
If people are willing to pay above MSRP more power to them. Obviously they feel they are getting their money's worth not having to wait.
 
veedubfreak said:
manufacturer SUGGESTED retail price. They can sell it for whatever the market will pay. Either pay it, wait, or shut up about it.
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One of the features of a free market is that customers are free to complain about the behavior of other participants. Why do you seem to favor free market pricing while also favoring the restriction of information flow? Only a moron could hold those two positions simultaneously.
 
Frobot said:
Really? Even if it was possible would it really be nice if a company stepped in and didn't allow YOU to sell the things you bought at the prices you wanted to sell them for?
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ZZF doesn't have to sell them at those prices, if they did it would have happen from the start. Same as the Wii stayed at $250 but limited stock.
 
None of these prices mean shit considering they aren't in stock.
 
l88bastard said:
Look I have no problem with people taking advantage of the scarcity of the product and turning around and selling it on EBAY for a higher than normal price.

But this is a retailer, that gets them at wholesale cost and is fleecing the consumer while other retailers are not adding on such a high markup.s.
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HAHAHAHA

I can take advantage of scarcity and use it to profit but if a retailer does it, it's price gouging. Hypocrisy and entitlement at its finest.

But really, if you are mad that one retailer has it at lower prices that the other, then buy it at the lower priced one genius. Well, assuming it's in stock.
 
l88bastard said:
Well somebody sounds like a draconian day trader with a little bit of legal reading under their belt.
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Neither actually. Just someone with an education in economics, like you, who gets tired of seeing people complain about pricing everywhere I look on the Internet, as if the simple fact that they don't want to pay as much should be the only thing that gets taken into account.
Look I have no problem with people taking advantage of the scarcity of the product and turning around and selling it on EBAY for a higher than normal price.

But this is a retailer, that gets them at wholesale cost and is fleecing the consumer while other retailers are not adding on such a high markup. Yes, they can also capitalize on the supply and consumer weakness, BUT IT DESTROYS THEIR GOODWILL. I look at them now and go FU scumbags, your not the only bastards that sell electronics, so I will take my business elsewhere because you love to bareback the consumer!
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First of all, what is the difference between someone marking it up on EBAY or the retailer marking it up. Both parties play the role of middle man. Why does it matter if the profit gets split between two middle men (or 3 if you count EBAY's cut) or if it all goes to the first?

Also, of course it destroys the retailers goodwill. But isn't it up to the retailer to weigh the benefits of that future goodwill versus the value of the current profits, instead of assuming, as most consumers often do, that the goodwill is always of greater value?
And no, I am not mad, I got my 5870. But if idiots are willing to pay extra let em give it too the dirtbags on ebay that do this kind of shit.

A major retailer should try and carry a better image of themselves than this.
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Which brings me back to my question I made in my original post, what's the point of this thread? You understand that ZZF is simply capitalizing on the shortage of high end video cards. And you understand that if ZZF didn't capitalize, others would almost certainly capitalize on that by putting them on EBAY (In fact it could be argued that since both ZZF and Newegg are completely sold out of 5870s right now that's exactly what's happening).

So I don't really understand why, knowing all of this as you do, you would post a thread to complain about ZZF. If there's anyone I would think you would want to complain about it would be Nvidia, as all other parties here (ZZF, Newegg, ATI, EBAY resellers, etc...) are functioning exactly is they're supposed to.
 
its different when a business does it............it tends to piss potential or long time customers off. who cares if you piss off and ebay reseller..........there are others to take there place. i would agree a slight increase for a hard to get item is one thing but when it goes beyond that its gouging. for electronics there are a limited number who people trust so saying there are other electronic retailers to take zzf places its not quite true. just my two cents.
 
Blazemore said:
ZZF doesn't have to sell them at those prices, if they did it would have happen from the start. Same as the Wii stayed at $250 but limited stock.
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Nobody has to do anything, from the start or otherwise. The Wii stayed at $250 at major retailers because of the public backlash if they had marked it up, but I know lots of small stores that marked up the Wii considerably.

A company can't limit how much you can charge if you want to unload their product on eBay, and I doubt you support that anyway. It's no different for retailers. Most won't markup for PR purposes, but it's not like ZZF has a sterling reputation in the first place.
 
Yeah its not like Newegg was severly gouging people for Intel SSDs and has a tendency to overprice power supplies!

Oh wait...
 
Itchyeyes said:
Are you sure? Cause it doesn't seem like you do. Otherwise what is the point of this thread?

Also, higher than MSRP prices != price gouging. Price gouging implies something illegal, for instance either significantly raising prices during a civil emergency or circumventing the free market (eg price collusion between competitors).
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Agreed. And the OP's comparison to NewEgg conveniently ignores the constantly fluctuating prices of the *other* 5000 series cards - for example, almost all of the (rarely in-stock) 5850 cards are priced *over* MSRP. So, OP, how is NewEgg not "gouging" then?

I do find it hard to believe the OP has a degree in economics . . . or anything else.
 
Itchyeyes said:
So I don't really understand why, knowing all of this as you do, you would post a thread to complain about ZZF.
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Without threads like this, ZZF would get to reap the benefits of its shitty behavior without having to suffer the full cost of it. Dragging ZZFs name through the mud can change the cost-benefit calculation such that they might think twice about doing this again.
 
JCDenton said:
Without threads like this, ZZF would get to reap the benefits of its shitty behavior without having to suffer the full cost of it. Dragging ZZFs name through the mud can change the cost-benefit calculation such that they might think twice about doing this again.
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They'll only think twice about it when the cards are sitting on the shelf and noone is buying. Doesnt seem like it to me. Even 500 bucks is fair price, if the cards sell out the instant they come into stock....
 
Frobot said:
Nobody has to do anything, from the start or otherwise. The Wii stayed at $250 at major retailers because of the public backlash if they had marked it up, but I know lots of small stores that marked up the Wii considerably.

A company can't limit how much you can charge if you want to unload their product on eBay, and I doubt you support that anyway. It's no different for retailers. Most won't markup for PR purposes, but it's not like ZZF has a sterling reputation in the first place.
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The Wii stayed at $250 due to advertising by Nintendo. Major brick/mortar stores would have a PR nightmare if prices were raised. Only way Nintendo kept consumers coming back was limited supply (some areas were less then others). ZZF, Newegg, etc. has the right to raise prices as they choose, but it would be nice if prices were advertised like 360, PS3, etc are. Now consumers would know what the to expect.
 
There is a lot wrong with this thread.

1 - Who cares
2 - if you can find it cheaper and you're going to make a purchase, use your brains
3 - i think this 'degree' is... well, let's just say it wasn't earned :p
4 - the MSI card is cheaper than newegg, so your argument is altogether invalid
5 - newegg has a much larger customer base so they can afford to lower prices more than most e-tailers

I think all of this was in 'Buying Something 101' which may or may not have been part of your curriculum. Either way, this thread is fail.
 
JCDenton said:
Without threads like this, ZZF would get to reap the benefits of its shitty behavior without having to suffer the full cost of it.
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If we were talking about customer service, or some other aspect of the retailer-consumer relationship that the customer may not know about until after they've made their purchase, then I would agree with you. But I think most people are more than capable of comparing prices from different retailers and choosing the lowest without our help.
 
obs said:
None of these prices mean shit considering they aren't in stock.
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obs raises an important point: do these out-of-stock prices translate into what the prices will be once they do come into stock? That is, were these prices set days or weeks ago, and one or both of the vendors won't bother to update the prices until they actually have them in stock?
 
Itchyeyes said:
If we were talking about customer service, or some other aspect of the retailer-consumer relationship that the customer may not know about until after they've made their purchase, then I would agree with you. But I think most people are more than capable of comparing prices from different retailers and choosing the lowest without our help.
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People who aren't considering a 5870 right now wouldn't be price shopping them and thus wouldn't know what ZZF is doing. In fact, I fall into this category. I'm happy with my GTX280 sli and ATI hasn't offered something worth upgrading to yet. However, I still find this thread relevant because when I am ready to buy something, I'll get it elsewhere even if ZZFs price is the same or slightly less.
 
newegg prices at $389 do not hold, either. newegg prices change when the card comes in stock. 2 weeks ago, for an hour, they had XFX 5870s. They were $469. when they go OOS, the price goes back down.

/rinse, repeat

it's not just ZZF doing this. wake up people
 
JCDenton said:
People who aren't considering a 5870 right now wouldn't be price shopping them and thus wouldn't know what ZZF is doing. In fact, I fall into this category. I'm happy with my GTX280 sli and ATI hasn't offered something worth upgrading to yet. However, I still find this thread relevant because when I am ready to buy something, I'll get it elsewhere even if ZZFs price is the same or slightly less.
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Uh, if you intend only to buy from a retailer who's never marked up a price, ever, you're going to be waiting a long time, bro. Who else do you prefer? Newegg? As someone mentioned, Newegg priced SSDs at TWICE MSRP at one point. Have fun with the selection at Best Buy.
 
evilsofa said:
obs raises an important point: do these out-of-stock prices translate into what the prices will be once they do come into stock? That is, were these prices set days or weeks ago, and one or both of the vendors won't bother to update the prices until they actually have them in stock?
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this.

who the fuck cares what the prices are set to when the item isn't in stock? is the price of an out of stock item more important than the price of the same item when in stock?
I'm confused :confused:

and how is it gouging when they aren't even selling at the price because they aren't in stock?
how can you price gouge on something you can't sell?
 
God, why do people think prices under MSRP is a fundamental right?

When the OP stated he had an economics degree, he sure meant it. :rolleyes:
 
I know if I was selling something, I'm gonna get what I can. MSRP? I don't think AMD/ATI should step in, I think things should be done like how eVGA does it. They (eVGA) has an MSRP and they (eVGA) actively sells their own shit on their own online site at their MSRP. Other places...egg.zzf, etc..also sells eVGA's shit at whatever price. Sometimes it's higher then eVGA's price, usually it's lower. Does AMD/ATI card manufactueres have anything like eVGA that will sell cards to comsumers directly at MSRP?

Other thing I do when I see something I know is heavily overpriced is I ask myself...."self, is the heavy price guoging worth it for my e-peen to get this product a few days/weeks...month??? earlier??" Usually the reply is " No, I can wait." and I come out of it seeing stores that changes pricing for what they are and the services they offer me. Like newegg, the huge online selling machine that consistently offers me fair and square deals and ZZF...the mediocre crumb grabbing online seller that is all over the place that I will use like a $3.50 whore.

Obviously, some people can't wait since it's still selling out. You should complain about those people, they are ruining it for the rest of us who's pockets don't go as deep or maybe we just are not as stupid with our money.
 
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Its simple economics. You cannot really be angry at the company for following the fundamental rules of our economic systems. Does it suck for us, hell yeah it does, but eventual it also works in our favor when another company releases something to compete, thus forcing down prices.
 
I bought 3 5850's under MSRP in the past 2 weeks. One was an XFX for $252 and the other two were PowerColor for $245 each.
 
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