Intel G2 available but is NewEgg gouging?

[Gutcheck2009]

Originally posted by: ElderTech
As for my reason to question whether or not Newegg is "price gouging", it was more to gauge the sentiments of this forum readership in these difficult economic times than to advocate any specific response to them. From my extensive business background, I'm not naive about product pricing during times of shortages. I even lived throught the oil embargo and price controls of the early '70s while in the petroleum industry. Sure there's the concepts of "what the market will bear" and "caveat emptor". But the issue of customer trust is one that is far more important to the survival of a business these days, particularly in the consumer electronics arena where it's so easy to move to a different source online.

And that's where Newegg surprised me with this pricing strategy, and perhaps it will cause them to suffer some measurable negative consequences from it. Personally, rather than purchase from them, I'll seach elsewhere for my needs/wants in the future, and only buy from them if I can't obtain the product elsewhere and/or for a reasonable price. The lack of easy phone contact has always been one of my gripes, and with the excellent phone contact response I've received from other highly rated online retailers like MWave, it's becoming a real factor of differentiation as well.

Exactly my friend. I think (and what I believe to be the point of this thread) is that I always trusted newegg to have the best, or almost best prices. Not any more. And for the first time in a long time I bought from somewhere else. My drvie came and is installed from mwave. I paid 249 and am happy.

 

[Idontcare]

Originally posted by: Gutcheck2009
I think (and what I believe to be the point of this thread) is that I always trusted newegg to have the best, or almost best prices. Not any more. And for the first time in a long time I bought from somewhere else.

I cannot fathom how or why anyone would come to think this, of newegg or any other retailer/etailer, given the fact that it takes soooo little effort to price-check anyways.

I'm intrigued, care to elaborate on how or why you came to be convinced that Newegg would/did give you best prices so much so that you wouldn't bother to pop-open another browser window and price-check at least with one other etailer?

 

[fleshconsumed]

Originally posted by: Idontcare

Originally posted by: Gutcheck2009
I think (and what I believe to be the point of this thread) is that I always trusted newegg to have the best, or almost best prices. Not any more. And for the first time in a long time I bought from somewhere else.

I cannot fathom how or why anyone would come to think this, of newegg or any other retailer/etailer, given the fact that it takes soooo little effort to price-check anyways.

I'm intrigued, care to elaborate on how or why you came to be convinced that Newegg would/did give you best prices so much so that you wouldn't bother to pop-open another browser window and price-check at least with one other etailer?

Back when newegg just opened around 2001 or 2002 they always had the lowest prices on the web. Back then I spent countless hours looking for best prices, and 95% of the time newegg always had the lowest price, and when it didn't, the price difference from the absolute lowest was only couple of bucks, I've never been able to find a part with price difference more than $3-4, and that was usually an exception. So for a couple of years I never even shopped around because I knew newegg would have the best price. It changed around 2005-2006 when newegg grew too large and started raising prices, I caught on and started shopping around again. And of course a year or two later they started dynamically raise prices based on pageviews/demand that you see now with x25-m G2. However, there was a time when newegg always had lowest prices.

 

[taltamir]

Originally posted by: fleshconsumed

Originally posted by: Idontcare

Originally posted by: Gutcheck2009
I think (and what I believe to be the point of this thread) is that I always trusted newegg to have the best, or almost best prices. Not any more. And for the first time in a long time I bought from somewhere else.

I cannot fathom how or why anyone would come to think this, of newegg or any other retailer/etailer, given the fact that it takes soooo little effort to price-check anyways.

I'm intrigued, care to elaborate on how or why you came to be convinced that Newegg would/did give you best prices so much so that you wouldn't bother to pop-open another browser window and price-check at least with one other etailer?

Back when newegg just opened around 2001 or 2002 they always had the lowest prices on the web. Back then I spent countless hours looking for best prices, and 95% of the time newegg always had the lowest price, and when it didn't, the price difference from the absolute lowest was only couple of bucks, I've never been able to find a part with price difference more than $3-4, and that was usually an exception. So for a couple of years I never even shopped around because I knew newegg would have the best price. It changed around 2005-2006 when newegg grew too large and started raising prices, I caught on and started shopping around again. And of course a year or two later they started dynamically raise prices based on pageviews/demand that you see now with x25-m G2. However, there was a time when newegg always had lowest prices.

agreed with everything, including the dates... While I cought on around 05-06 that they are raising prices, i still shopped there due to outstanding customer support and history. But when that degraded i said screw it and started going after the best price

 

[Mr Fox]

Originally posted by: taltamir
I'd like to quote one of the other users on the newegg thread that was linked here...

Official definition of Price Gouging, which MrFox is threatening to report Newegg for:

http://en.wikipedia.org/wiki/Price_gouging

I had absolutely NO IDEA that Intel G2 SSD's are

1) An ESSENTIAL good or service (like water, gasoline, food, etc...)

2) That we are in a time of CIVIL EMERGENCY where possession and usage of a Intel G2 SSD was ESSENTIAL to the preservation of public order.

So when can I call MrFox out on these issues and tell him to take his head out of his rear end? Oh man, I'm about to cross some abusive language limits I'm sure, but maybe its because MrFox made some SERIOUS THREATS against Newegg (lets report them to the California Attorney General!!!!) that to me are beyond outrageous and borderline slanderous. Come on man, these are high end electronic luxury items.

You gonna go off on a TIRADE over Bose Lifestyle systems being $5k? Oh MAN! Next Generation Priuses are $35k! OH NOES! Darn those $5k Season Tickets to see the local sports franchise! PRICE GOUGING!!!

(I am laughing hysterically inside)

-CAGG

OWNED!
capitalism at work for you, people bitch and moan when noone is forcing you to buy it, and many WILL pay that price... I don't bitch at intel for selling 1000$ cpus, i just buy cheaper ones. Same with newegg

Originally posted by: CheapAsianGamerGuy:



Newegg's Response: Drop Price to $350 and offer a refund of the difference to anyone who already purchased one.

Looks to me that there must have been some substance to my Complaints, otherwise they (NewEgg) would have stayed with the pricing structure that I outlined in the screen shots... and this post would still be locked...

 

[Idontcare]

Originally posted by: Mr Fox

Originally posted by: CheapAsianGamerGuy:



Newegg's Response: Drop Price to $350 and offer a refund of the difference to anyone who already purchased one.

Looks to me that there must have been some substance to my Complaints, otherwise they (NewEgg) would have stayed with the pricing structure that I outlined in the screen shots... and this post would still be locked...

Is CheapAsianGamerGuy an employee of Newegg?

All I see there is some dude posting something on a forum as if it were a fact. Any confirmation that folks who bought the drive for >$350 are actually getting a refund?

Great if it is true, sets bad expectations/precedence for the next time though.

I can just see it now, kiddies screaming that newegg ripped them off because when they bought their 5870X2 for $1099 they assumed newegg would be dropping prices soon and refunding them the difference :laugh:

 

[Mr Fox]

Originally posted by: Idontcare

Originally posted by: Mr Fox

Originally posted by: CheapAsianGamerGuy:



Newegg's Response: Drop Price to $350 and offer a refund of the difference to anyone who already purchased one.

Looks to me that there must have been some substance to my Complaints, otherwise they (NewEgg) would have stayed with the pricing structure that I outlined in the screen shots... and this post would still be locked...

Is CheapAsianGamerGuy an employee of Newegg?

All I see there is some dude posting something on a forum as if it were a fact. Any confirmation that folks who bought the drive for >$350 are actually getting a refund?

Great if it is true, sets bad expectations/precedence for the next time though.

I can just see it now, kiddies screaming that newegg ripped them off because when they bought their 5870X2 for $1099 they assumed newegg would be dropping prices soon and refunding them the difference :laugh:

He's a Mod on their forum... the thread was unlocked at the direction of Paul (CS Mgr.)

The bad thing is that they don't disable the click script... And it does exist...

 

[taltamir]

it is a PR stunt, and a bad one at that... they are caving in to stupid demands by people who feel they are entitled to something they aren't. They also set a bad precedent... I feel bad for them though, they felt such pressure from an overwhelming hostility to them when they are doing nothing wrong, that they felt the need to do that.

 

[Idontcare]

Originally posted by: Mr Fox
He's a Mod on their forum... the thread was unlocked at the direction of Paul (CS Mgr.)

That makes it official enough for me.

Originally posted by: Mr Fox
The bad thing is that they don't disable the click script... And it does exist...

True, but Rome wasn't built in a day, nor were consumer protection laws, so I'd say call this one a victory for Mr Fox and be happy.

You can bet someone inside Newegg has been tasked with determining whether the algorithm needs to be dialed down to a less aggressive ramp-rate or have a lower max-out value.

If your message reached high enough in the org chart to have touched a decision maker authorized with making decisions regarding $150+ refunds then you can bet that person is none too interested in being hassled by this again.

Originally posted by: taltamir
it is a PR stunt, and a bad one at that... they are caving in to stupid demands by people who feel they are entitled to something they aren't. They also set a bad precedent... I feel bad for them though, they felt such pressure from an overwhelming hostility to them when they are doing nothing wrong, that they felt the need to do that.

This is part of supply and demand though, if we hold dear to the idea of an efficient market model that justifies if not outright requires an auction-type automated pricing model then at the same time we ought to recognize and accommodate the way in which the other side of the equation (the buyers) respond to this model.

The buyers are well within their rights, and the market model would be all less if they didn't exercise those rights, to rally against sellers by any means they can so as to effect a lowering in the demand for the product at a given seller and thus pull the supply/demand pricepoint equilibrium down in favor of the buyer.

In my view of it, this is no different than advertising.

Sellers advertise to put upward pressure on the supply/demand equilibrium pricepoint while grassroots movements to boycott or stifle interest in buying a product from any supplier or buying products from one specific supplier so as to put downward pressure on the supply/demand equilibrium pricepoint.

Why should the seller's have unfettered access to their psychological (that is the basis of advertising, isn't it?) campaigns to manipulate the supply/demand curve to their benefit but the buyer's should be prevented from doing the same for their benefit?

I can no more admonish Mr Fox for his grassroots efforts to light a fire under Newegg's proverbial ass than I can admonish Newegg for their efforts to extract as much profits as the markets would bear.

 

[ElderTech]

IDontCare says:
"True, but Rome wasn't built in a day, nor were consumer protection laws, so I'd say call this one a victory for Mr Fox and be happy.

You can bet someone inside Newegg has been tasked with determining whether the algorithm needs to be dialed down to a less aggressive ramp-rate or have a lower max-out value.

If your message reached high enough in the org chart to have touched a decision maker authorized with making decisions regarding $150+ refunds then you can bet that person is none too interested in being hassled by this again."

This is exactly the kind of response I was interested in receiving to this post. It indicates the sentiment that buyer response to customer unfriendly pricing strategies and other company practices like this do need to be heeded. In this instantaneous communication ditigal world, information about these situations can quickly impact a business (or any other kind of) decision with considerable ramifications. As noted above "be happy"!

 

[Blain]

My theory on Newegg's price spike on the Intel SSD's...

* Newegg tracks monkeys building dream wish lists, waiting for some component to drop $1.75 before they buy.
* They want more buying and less "wishing"
* They have SSD drives that many people follow prices on, but don't buy. They are out of stock.
* Since they are low or out of stock, they could bump the price up to $8000. It doesn't matter since the drives aren't in stock anyway.
* The price spike makes the wish monkeys think... I'd better buy my parts now before they all go up $1.75 instead of down $1.75.

Just a theory, but it's as good as any others I've read. 😛

 

[Mr Fox]

Originally posted by: Blain
My theory on Newegg's price spike on the Intel SSD's...

* Newegg tracks monkeys building dream wish lists, waiting for some component to drop $1.75 before they buy.
* They want more buying and less "wishing"
* They have SSD drives that many people follow prices on, but don't buy. They are out of stock.
* Since they are low or out of stock, they could bump the price up to $8000. It doesn't matter since the drives aren't in stock anyway.
* The price spike makes the wish monkeys think... I'd better buy my parts now before they all go up $1.75 instead of down $1.75.

Just a theory, but it's as good as any others I've read. 😛

The issue would be bottling that algorithm... You might be able to patent it, and sell it, the only complication would be the life cycle of the Monkeys...