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Who pays for the discounts on old video cards?

rogerdv

rogerdv

Member
Im curious to know what happens now that Nvidia released a bunch of video cards that are better and cheaper than the previous generation, while still that previous generation is being sold. Obviously, all those 2080s must get a price cut, or nobody will buy them, but who pays that hughe cut? The retailer (newegg, Amazon), the card manufacturer (MSI, EVGA), or Nvidia?
 
That's going to likely vary by vendor agreement. Most large-scale retailers have more clout than smaller retailers, so they likely get breaks on large inventory orders and either have the opportunity to return a portion or clearance them without taking a hit (to keep their business agreements going). They may even get the product without putting cash up front (NET30). They also probably scale back orders when they know new releases are coming and keep a pulse on sales trends to adjust their monthly orders. Small retailers may have to pay cash up front for any product they get just because their inventory numbers are small enough.

I'm not sure what retail markup is on a video card these days, but many products have a lot of wiggle room built-in to their pricing. If it's profitable, retailers will sell the product at a discount...otherwise, they'll return to the manufacturer unless they paid cash or don't have that as an option.
 
rogerdv said:
Im curious to know what happens now that Nvidia released a bunch of video cards that are better and cheaper than the previous generation, while still that previous generation is being sold. Obviously, all those 2080s must get a price cut, or nobody will buy them, but who pays that hughe cut? The retailer (newegg, Amazon), the card manufacturer (MSI, EVGA), or Nvidia?
Click to expand...

Been involved in this in some sort of fashion for a long time in a couple different industries.
**but not video cards or PC Hardware**
Typical thing is let’s say you are stuck with an overstock of 2080’s. nVidia will sell you an equal(ish) amount of 3080s with a discount to make up for the markdown on the 2080s. Typically manufacturers don’t want to undermine their vendors because it hurts everyone.
Sometimes there is a rebate that let’s say nVidia pays 70% of so the vendor can sell the card with a $100 rebate that total cost to them is $30. Again similar idea to above just different process or better yet team up with steam to pay the $30 and buyer gets $100 steam credit.
Occasionally the manufacturer (let’s say Asus) will buy back the old items to hold over for warranty or white box (no support no warranty) sales. Again not always but possible.
Or sometimes it’s multiple solutions wrapped in one or sometimes it’s FU you bought too many and sold too few.
 
Probably one reason why those RTX 3080 are OOS is retailers have an overstock of RTX 20 series they couldn't sell fast enough. No one in their right mind would pay those asking prices for 2 year old technology.
 
Has anyone even been able to buy one of those 3080's? For 699 they seem like a pretty amazing deal price wise.
 
BudAshes said:
Probably all being resold at this point for twice the price.
Click to expand...

Yup. There is a whole thing about people spoofing eBay accounts to drive the prices to unobtainable amounts. Saturday I read about one pre-order being driven up to $50k.
Safe to assume nobody is paying $50k for a video card. I think the idea is boost prices to an amount no normal person would pay this removing the incentive to list on eBay.
Personally I think this won’t work and just drive up the prices in general.
 
Fanatical Meat said:
Yup. There is a whole thing about people spoofing eBay accounts to drive the prices to unobtainable amounts. Saturday I read about one pre-order being driven up to $50k.
Safe to assume nobody is paying $50k for a video card. I think the idea is boost prices to an amount no normal person would pay this removing the incentive to list on eBay.
Personally I think this won’t work and just drive up the prices in general.
Click to expand...

*Final listed bid was $87k.
😀
 
When MSRP changes and a company is holding fresh inventory, the manufacturer kicks back the money but will only do so on fresh inventory!

Often times the inventory can be returned and replaced with new stock, the manufacturer than offloads the inventory through discounters and not premium retail outlets.
 
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