where the heck does newegg buy?

"daniel" wrote in message m...
i don't understand how newegg can afford to charge so little for
motherboards when they process so many orders every day. Who are they
buying from? something is fishy here. Are they being supplied directly
by intel? former employees, anyone with a clue, please respond.

Volume volume volume. Large retailers either buy from even
larger distributors or directly from the manufacturer. In either
case they get stuff dirt cheap.

RickW

Very well put
Denny
"Rick" wrote in message
...
"daniel" wrote in message
m...
i don't understand how newegg can afford to charge so little for
motherboards when they process so many orders every day. Who are they
buying from? something is fishy here. Are they being supplied directly
by intel? former employees, anyone with a clue, please respond.

Volume volume volume. Large retailers either buy from even
larger distributors or directly from the manufacturer. In either
case they get stuff dirt cheap.

RickW

Yeah .. they get really low prices because they buy large quantities of the
product they get a good deal and then they pass 'some' of that savings on to
the customer.

"Raichu Mouse Pokémon" wrote in message
...
Very well put
Denny
"Rick" wrote in message
...
"daniel" wrote in message
m...
i don't understand how newegg can afford to charge so little for
motherboards when they process so many orders every day. Who are they
buying from? something is fishy here. Are they being supplied directly
by intel? former employees, anyone with a clue, please respond.

Volume volume volume. Large retailers either buy from even
larger distributors or directly from the manufacturer. In either
case they get stuff dirt cheap.

RickW

They can buy a thousand boards at a time compared to a hundred at most
companies, imagine the discount.

Lane

"daniel" wrote in message
m...
i don't understand how newegg can afford to charge so little for
motherboards when they process so many orders every day. Who are they
buying from? something is fishy here. Are they being supplied directly
by intel? former employees, anyone with a clue, please respond.

"Lane Lewis" wrote in message . com...
They can buy a thousand boards at a time compared to a hundred at most
companies, imagine the discount.

Lane

"daniel" wrote in message
m...
i don't understand how newegg can afford to charge so little for
motherboards when they process so many orders every day. Who are they
buying from? something is fishy here. Are they being supplied directly
by intel? former employees, anyone with a clue, please respond.


Plus there is less overhead not having a physical store.

Eric

Keith Clark wrote:
On Tue, 08 Jul 2003 17:00:27 -0700, daniel wrote:


i don't understand how newegg can afford to charge so little for
motherboards when they process so many orders every day. Who are they
buying from? something is fishy here. Are they being supplied directly
by intel? former employees, anyone with a clue, please respond.


First, Intel employees get ZERO discounts. A company like Intel can't
afford to give preferential treatment to anyone basd on anything other
than volume because to do so would make them a target of lawsuits which
they hate as much as anyone else (if not more so because their size makes
them even more of a target).

Second, the motherboard market is extremely competitive.

Newegg's prices are almost exactly what other places, including local
(Portland, OR) places charge. Case in point - check the motherboard prices
at the place where I bought mine on the way home from work :
http://www.enuinc.com

When I bought my new P4P800 Deluxe motherboard last week I bought it
locally for almost exactly what Newegg charges.

So much for any "conspiracy theory".

You are, of course, quite right but it's easier, and apparently more 'fun', to
invent a conspiracy theory than it is to learn how business works.

The very thing he sees as a 'problem indicator', I.E. that "they process so many
orders every day," is precisely one of the reasons behind why they can charge
"so little." I.E. volume:"economies of scale."


I did buy the CPU and memory for my system upgrade from Newegg since
nobody else came close, and both came in factory-sealed retail packages.
Also I got automated emails throughout their shipping process. I got free
shipping and the stuff arived two days later. I can't complain.

David Maynard wrote:


You are, of course, quite right but it's easier, and apparently more 'fun', to
invent a conspiracy theory than it is to learn how business works.

The very thing he sees as a 'problem indicator', I.E. that "they process so many
orders every day," is precisely one of the reasons behind why they can charge
"so little." I.E. volume:"economies of scale."



GameVE has good prices too. They had the best price I could find on an MSI
FX5600VTDR graphics card and I got free shipping on that, too.

It's not just the fact that an individual mail-order company charges less but the
whole computer DIY industry is extremely price-competitive.

In a free market, competition + demand = lower prices.

Which is exactly why Congress passed the Telco reform act of 1996 - it was supposed
to increase competition, and if properly implemented, would have. Of course we all
know that the FCC is "telco friendly" (I'll stop short of saying what I *really*
think because I can't prove it) and ultimately derailed the intent of the law. But
if the telecom market was truly based on free enterprise and not run by the FCC, I
think we wouldn't have such outrageous phone bills and there would be more
availability of broadband access. Amazingly, the telcos that sell broadband don't
even want to provide it in many cases - a few months ago I talked to a Verizon
engineer who said they outfitted a brand new housing development covering several
square blocks with multiplexers that aren't compatible with DSL. Anyway my whole
point is the the telco industry is not a "free market".

That's also why I think NASA should step aside and get out of the space business.
That said - I very much believe that "we" should be in space in a very huge way, but
we desperately have to get past the outdated "rocket" mode because with every launch
we're building a prison wall around the planet, in terms of space debris. There
needs to be a tremendous investment in matter-antimatter propulsion (University of
Penn has a working engine). As long as government runs the show, there will never be
true advances. The next generation "space plane" is such a retro joke that I think
it pretty much proves the point (they're actually taking about a return to "Apollo"
style *capsules*. Give private enterprise a profit motive and we'd be on Mars by the
end of the decade in a ship that could make the trip in a couple weeks instead of
years.

But I'd better get off the soapbox... ;-

Keith Clark wrote:

David Maynard wrote:


You are, of course, quite right but it's easier, and apparently more 'fun', to
invent a conspiracy theory than it is to learn how business works.

The very thing he sees as a 'problem indicator', I.E. that "they process so many
orders every day," is precisely one of the reasons behind why they can charge
"so little." I.E. volume:"economies of scale."




GameVE has good prices too. They had the best price I could find on an MSI
FX5600VTDR graphics card and I got free shipping on that, too.

It's not just the fact that an individual mail-order company charges less but the
whole computer DIY industry is extremely price-competitive.

Of course. Newegg isn't the only company that has volume.


In a free market, competition + demand = lower prices.

Well, it hopefully means a whole host of things, summarized as the 'best'
product set for the 'best' price. That's 'best' as in what the market will buy
and not necessarily what any particular individual's opinion of what it SHOULD
be is. You find out if you're right by competing with all the rest who are also
convinced they know what's 'best'.

snip of politics

I admire your faith in the free market but I'll just add that sometimes there
are other considerations.

David Maynard wrote:

Keith Clark wrote:

David Maynard wrote:


You are, of course, quite right but it's easier, and apparently more 'fun', to
invent a conspiracy theory than it is to learn how business works.

The very thing he sees as a 'problem indicator', I.E. that "they process so many
orders every day," is precisely one of the reasons behind why they can charge
"so little." I.E. volume:"economies of scale."




GameVE has good prices too. They had the best price I could find on an MSI
FX5600VTDR graphics card and I got free shipping on that, too.

It's not just the fact that an individual mail-order company charges less but the
whole computer DIY industry is extremely price-competitive.

Of course. Newegg isn't the only company that has volume.


In a free market, competition + demand = lower prices.

Well, it hopefully means a whole host of things, summarized as the 'best'
product set for the 'best' price. That's 'best' as in what the market will buy
and not necessarily what any particular individual's opinion of what it SHOULD
be is. You find out if you're right by competing with all the rest who are also
convinced they know what's 'best'.

snip of politics

I admire your faith in the free market but I'll just add that sometimes there
are other considerations.

Of course... :- There's the way things are supposed to work and then there's the "real
world". ;-

--Keith