Anyone else surprised Microcenter is cheaper than NewEGG?

[gizbug]

Too bad I don't have one near by.


i5.
Microcenter
159.99

Newegg
209.99

i7
Microcenter
219.99

Newegg
299.99

 

[yacoub]

Nope. NewEgg isn't exactly known for cheap prices on brand new items. In fact, their automated pricing system tends to bump up the prices on items that are in high demand and decreasing stock.

 

[Schadenfroh]

Microcenter has been the place to buy CPUs for a while. I payed like $40 less for my Q9450 from their website than NewEgg.

 

[Idontcare]

Originally posted by: yacoub
Nope. NewEgg isn't exactly known for cheap prices on brand new items. In fact, their automated pricing system tends to bump up the prices on items that are in high demand and decreasing stock.

Microcenter sells below cost on certain items as a marketing tactic to get people into the store where a certain percentage of those customers then buy other, even higher over-priced, items.

Newegg, and any other etailer, can't effectively operate this way as the percentage of folks who will buy more than just the loss-leader items is too low for the etailer to net ahead on the marketing tactic.

There really is no rocket science or shenanigans going on here, just retail vs etail marketing 101 stuff. And it isn't something the PC industry invented either, my wife tells me she sees the same marketing tactics going on when it comes to her buying shoes and clothes online vs. at the mall.

 

[Jumpem]

I found it odd at first as well.

The closest Microcenter to me is 278 miles. I plan to stop there to get an i7 860 or 920 anyway, as it is only 20 miles off course of going to my wife's gramma.

 

[elconejito]

Originally posted by: Idontcare

Originally posted by: yacoub
Nope. NewEgg isn't exactly known for cheap prices on brand new items. In fact, their automated pricing system tends to bump up the prices on items that are in high demand and decreasing stock.

Microcenter sells below cost on certain items as a marketing tactic to get people into the store where a certain percentage of those customers then buy other, even higher over-priced, items.

Newegg, and any other etailer, can't effectively operate this way as the percentage of folks who will buy more than just the loss-leader items is too low for the etailer to net ahead on the marketing tactic.

There really is no rocket science or shenanigans going on here, just retail vs etail marketing 101 stuff. And it isn't something the PC industry invented either, my wife tells me she sees the same marketing tactics going on when it comes to her buying shoes and clothes online vs. at the mall.

100% agree on that.

 

[yacoub]

But it's irrelevant what other items there cost that are unrelated to what we're interested in.

 

[Idontcare]

Originally posted by: yacoub
But it's irrelevant what other items there cost that are unrelated to what we're interested in.

To which I posit that the proof of the pudding is in the eating, that retailers engage in this well-characterized marketing tactic would seem to be proof enough that sufficient numbers of customers do become interested in buying other items once they are in the store.

Its referred to as "generating foot-traffic" and using loss-leaders to generate foot-traffic is as old a marketing tactic as the retail chains themselves.

loss leader

?noun a popular article that is sold at a very low price or at a loss for the purpose of attracting customers to a retail store. Compare leader (def. 4).

Origin:
1920?25
http://dictionary.reference.com/browse/loss+leaders

 

[OILFIELDTRASH]

I would agree with them selling the cpu's at cost or below cost to get foot traffic ,but I would disagree with the statement that you are paying a huge premium on everything else. I bought my i7 at a microcenter and looked around and found that they are competitive with a bunch of their products (cases, mobo, ram, etc.) I would even go as far to say that given the huge discount on cpu's you could walk into a microcenter and build a system for about the same price as you could at newegg and have your rig built the same day. Of course most people only get the cpu's then get the rest of the stuff online at a cheaper price.

 

[DisgruntledVirus]

I went in to buy the Core i7 920 at mine. One it was cheaper than Newegg and online, and two I could ensure the D0 stepping.

Because I didn't want to wait, I picked up the mobo (Asus P6T) for about the same as the egg and memory (6 gb OCZ DDR 3) for a tad more than the egg. All said and done I walked out the door about $60 less than Newegg. Also, picked up an OEM Samsung SATA optical for the gf's computer (she wants lightscribe for her photography business disks she makes), which was maybe $5 more than the egg.

Video cards OTOH I would most likely never buy there. Same with cases.

 

[Leyawiin]

Brick and mortar holds little appeal for me once I figured in traveling to the location plus the sales tax (which in California is quite high). Even when I lived 45 minutes from San Jose I rarely went to the MicroCenter there (or the Fry's for that matter). I try to find an e-tailer out of state with a reasonably good price and free shipping. Amazon.com oftentimes does it for me. There's something to be said for the value of having something delivered to your doorstep instead of running around.

 

[swanysto]

Originally posted by: DisgruntledVirus
I went in to buy the Core i7 920 at mine. One it was cheaper than Newegg and online, and two I could ensure the D0 stepping.

Because I didn't want to wait, I picked up the mobo (Asus P6T) for about the same as the egg and memory (6 gb OCZ DDR 3) for a tad more than the egg. All said and done I walked out the door about $60 less than Newegg. Also, picked up an OEM Samsung SATA optical for the gf's computer (she wants lightscribe for her photography business disks she makes), which was maybe $5 more than the egg.

Video cards OTOH I would most likely never buy there. Same with cases.

I agree with there. The video cards are marked up a lot, and the hard drives are usually pretty high too, but I would much rather go in and buy the MB and processor at the same price and have it that day. I can also exchange bad items within 30 minutes of finding out they are bad. I live 10 minutes away, so I guess it is better for me than someone who may live 30+ minutes away.

As far as the marketing, I think it works. While a lot of the hardcore people don't fall for it, I usually use the time while I am there to get stuff I may need like DVD-R's and such. They may make a little money on me, but I don't mind paying a little extra for convenience. It used to be I ordered everything off the internet, cause stores like CompUSA couldn't compete(which is why tigerdirect them over). Now, I have Fry's and Microcenter near me, which keep the B&M market competitive, and all that much better for me the buyer.

 

[AsusGuy]

Micro Center is the place to go for CPUs, they usually have the best deals and have better prices on new items, however some things like video cards and RAM I have noticed are very expensive.

 

[Kenmitch]

I can see the get you in the door thing.

Wonder why they just don't sell a bundle deal online for those who don't live
within a resonable driving distance.

 

[BTRY B 529th FA BN]

No surprise. Look at your local grocery markets.

I just wish i had the money to shop at microcenter like i do the grocery market -

 

[ScorcherDarkly]

I can't find my link to back it up, but I read a thread on another forum a few days ago in which the OP was a microcenter rep advertising their initial i5 launch line up of processors and mobos. In one of the posts this person wrote, they flat out said that microcenter does sell processors below cost to try and draw in business, and makes up the money lost on the processor in sales of other items. I'll keep trying to find the thread. I think it was on overclock.net or xtremesystems, but I don't remember for certain.

Here: http://www.xtremesystems.org/f...howthread.php?t=233598

 

[Beanie46]

MicroCenter gets my business all the time and I rarely buy from Newegg any longer unless it's a totally weird part no one else carries.

This is because of a few reasons: MicroCenter will price match Newegg all day long. So, I "shop" MicroCenter, Newegg, and Fry's online before going to MC. If I find a lower price at either NE or Fry's, I simply print out the page. Then, when checking out at MC, I show the printout of the page and its price is matched. In over four years and all the $$ I've spent in MC, I've only twice had my printed out pages checked online to ensure accuracy....and have never had one pricematch refused.

Second, if the part is DOA, it's a very painless and quick return for new part or refund. Never a problem, never a question. No waiting for a week or two for a return of a new part or credit on my CC.

I do wish their memory selection was better and their watercooling product line was deeper, but those are about all the things I can nitpick about with MC.

On the opposite end of the spectrum, deep enough selection of motherboards, tons of air cooling heatsinks, fans, etc., power supplies, video cards, and all the same price as Newegg, if not lower.

 

[GLeeM]

Originally posted by: BTRY B 529th FA BN
No surprise. Look at your local grocery markets.

I just wish i had the money to shop at microcenter like i do the grocery market -

Grocery store was my first thought too! My wife shops at two stores to get all the "loss leaders"

Couple months ago I had to travel 3.5 hours to "The Cities" so while there I figured I would stop at MC and get the i7 920, and then buy everything else online.

The very knowledgable salesman asked it I needed anything else ...

Well, the GTX275 was on sale for like egg price, the PSU I wanted was on sale for same as egg, ram was same too. Mobo $10 more, hsf $5 more. I couldn't resist. They boot tested it for free.

 

[Yukmouth]

Originally posted by: GLeeM

Originally posted by: BTRY B 529th FA BN
No surprise. Look at your local grocery markets.

I just wish i had the money to shop at microcenter like i do the grocery market -

Grocery store was my first thought too! My wife shops at two stores to get all the "loss leaders"

Couple months ago I had to travel 3.5 hours to "The Cities" so while there I figured I would stop at MC and get the i7 920, and then buy everything else online.

The very knowledgable salesman asked it I needed anything else ...

Well, the GTX275 was on sale for like egg price, the PSU I wanted was on sale for same as egg, ram was same too. Mobo $10 more, hsf $5 more. I couldn't resist. They boot tested it for free.

You let another man put his hands on your parts!?!?!?!?!

 

[nyker96]

Originally posted by: Idontcare

Originally posted by: yacoub
Nope. NewEgg isn't exactly known for cheap prices on brand new items. In fact, their automated pricing system tends to bump up the prices on items that are in high demand and decreasing stock.

Microcenter sells below cost on certain items as a marketing tactic to get people into the store where a certain percentage of those customers then buy other, even higher over-priced, items.

Newegg, and any other etailer, can't effectively operate this way as the percentage of folks who will buy more than just the loss-leader items is too low for the etailer to net ahead on the marketing tactic.

There really is no rocket science or shenanigans going on here, just retail vs etail marketing 101 stuff. And it isn't something the PC industry invented either, my wife tells me she sees the same marketing tactics going on when it comes to her buying shoes and clothes online vs. at the mall.

yes I also heard from some sources, they sell cpu at below market then recoup when you buy cases, boards, gcards etc at inflated prices. but newegg also do this as a marketing trick, they sell many HD at below market to attract sales and boost reputation.

 

[Zoomer]

Are these CPUs retail boxed or bare oem?

 

[Darkrage]

all I can say is i wish there was a Microcenter in FL.

 

[Bill Brasky]

Originally posted by: Zoomer
Are these CPUs retail boxed or bare oem?

The ones I saw were retail boxed, but obviously YMMV.

I've found MC prices to equal newegg on motherboards, but RAM is usually ~30 bucks over priced. I plan to get a CPU and mobo at microcenter, and order ram and HD's from newegg.

 

[Zap]

I'm suprised people still think Newegg is always cheaper.

 

[DrMrLordX]

NewEgg has plenty of loss-leaders. Their strategy merely differs from that of Microcenter. NewEgg likes to sell dated, overstocked, everything-must-go products at a loss to get people onto their site so that they'll be tempted by something that's in high demand for which they will charge based on stock levels, page hits, and other funky metrics.

Remember when they were charging over $1400 for a QX6700 when they were new?

The Egg's goal is to produce name recognition so that when people shop online, they automatically look there under the assumption that everything there will be cheaper than at a competitor. So far as I can tell, the tactic seems to work fairly well.