Price differences between stores like Best Buy and online stores like Newegg

[Regs]

I'm stuck in a dilemma.

Should I ask how does newegg get away with such low prices? Or Why does Best Buy (and others) continue to rip off customers.

Price Comparisons:

Creative Labs Sound Blaster Audigy 2 PCI Audio Card ? SB0240

Best Buy: 129.00 Retail
Newegg: 78.00 OEM

ATI ALL-IN-WONDER RADEON 9700 PRO 128MB DDR Graphics Card

Best Buy : 399.99
NewEgg: 360.00

Western Digital Caviar Special Edition 120.0GB Internal Hard Drive ? WD1200JBRTL

Best Buy: 159.99
NewEgg: 107.00

These are 40+ dollar differences. That's one hell of a profit!

 

[minendo]

You really can't compare OEM vs. Retail.

 

[amnesiac]

Um, well there's a few things that may have escaped your notice.
Mainly, how many stores does Best Buy have? How many employees do they have? How much is rent, upkeep, maintenance of said stores? Plus, they stock much more than computer equipment.

Compare that to Newegg who has a handful (comparatively) of employees, maintains inventory in one warehouse, and deals mostly with OEM products. Their "store" is a website, which costs much, much, less to maintain than several hundred large retail buildings.

 

[DevilsAdvocate]

It is called overhead.

Not to mention the fact that you are comparing OEM to retail boxed products.

 

[gistech1978]

i would imagine BB has more costs to cover?
you think the land/building/construction of a new store is free?
are the (i dont know) 75-100 employees @ each store not paid?
newegg probably owns/leases a couple of warehouses and a couple of office buildings and maybe has a staff of 200 or so.

 

[Encryptic]

Originally posted by: DevilsAdvocate
It is called overhead.

 

[amnesiac]

Originally posted by: Encryptic

Originally posted by: DevilsAdvocate
It is called overhead.

I would have said that but considering this guy is THAT clueless, I think the term "overhead" would have gone rightly so.

 

[NogginBoink]

Originally posted by: amnesiac

Originally posted by: Encryptic

Originally posted by: DevilsAdvocate
It is called overhead.

I would have said that but considering this guy is THAT clueless, I think the term "overhead" would have gone rightly so.

ba-dum ching!

 

[Regs]

Sorry for taking the advantage of asking a question amnesiac, but I guess such a common sense question deserves credit for such a smart ass response.

 

[Vette73]

Its called BestBuysux.org

 

[heartsurgeon]

common sense question

how old are you?

how does newegg get away with such low prices

let's see...no television, newspaper, magazine advertising, no stores with employees, no massive inventory, no automatic return policy......

Why does Best Buy (and others) continue to rip off customers

they don't force you to come i and buy anything do they?...so what's with the "rip-off" comment.

personally...i love browsing at best buy. i buy stuff there when i want something immediately. otherwise i shop the internet for the best price...
frankly, i would be bummed if I had to buy everything from Newegg..sometimes you want to see and touch something before you buy it...