If P4 3.06 cost $401/1000, how can Googlegear sell them for less?

[Hulk]

I remember reading that the price of the P4 3.06 will drop to $401/1000 in May, or it might have already.

How can Googlegear sell retail boxes for less than this amount? E-bay is even selling them for less than Googlegear, retail box too.

 

[oldfart]

They lose money on every one of them, but make up for it in volume!

 

[LittleBoo]

...and where are the $417 P4 3.0 Ghz 800 FSB's? :frown:

 

[Corsairpro]

Originally posted by: oldfart
They lose money on every one of them, but make up for it in volume!

If they lose money on every one.... wouldn't their LOSS increase as the number sold increases? I'd assume that large online resellers get "special" deals that aren't available to mom and pop stores that buy at the 401/1000 price.

Also, in the processor business, most inventories are either consigned or purchased from Intel/AMD with buyback agreements. (this protects the vendor from losing tons of money when intel/AMD announces price cuts leaving the retailer w/ a large inventory of procs bought at a higher price)

 

[oldfart]

If they lose money on every one.... wouldn't their LOSS increase as the number sold increases?

Yes. It's a joke. Notice the

 

[Corsairpro]

lol... right!

 

[mroleg]

Actually there are 2 types of markets. Regular - where retailers buy Intel products from authorised dealers (the one you talking about $401/1000). Grey market - where prices are absolutely different from the authorised dealers on the same products.
If only I could get a hold of any of the grey market distributors

 

[alkemyst]

sort of like the 'back of a truck' market in large cities.

Some companies 'allow' the driver to lose up to 10% of the product, wierd.