Why newegg prices are cheaper than official?

[Nomanor]

Guys, any idea why newegg offers significantly cheaper prices than the manufacturer store for the same item?

http://www.newegg.com/Product/Produc...82E16820233230

http://www.corsair.com/en/memory-by...hannel-ddr3-memory-kit-cmt16gx3m4x2133c9.html

 

[aaksheytalwar]

I guess this happens quite often, all the time I think.

 

[corkyg]

Its called discount marketing. The objective is to stay low in the margin and win on volume. Mfgr store has to go with their MSRP so that their dealers can make a decent profit.

 

[Hellhammer]

Its called discount marketing. The objective is to stay low in the margin and win on volume. Mfgr store has to go with their MSRP so that their dealers can make a decent profit.

Exactly. Plus retailers like NewEgg get huge profits from advertising. There is a reason why some brands are constantly on the front page while others are never.

 

[Smoblikat]

Yikes, either way 240$ is way too much for 16gb DDR3 2133, I wouldnt pay more than 130$.

 

[Carson Dyle]

Guys, any idea why newegg offers significantly cheaper prices than the manufacturer store for the same item?

Because they're allowed to and they apparently have enough of a margin that they can afford to do so. It's not the manufacturer's store that they have to worry about competing against - it's other discount online retailers.

But think about it for a second. A manufacturer that sells online _and_ also sells through retailers can't undercut the prices of those sellers or else nobody would resell their products. Most manufacturer's stores will sell their own products at straight MSRP.

 

[Red Hawk]

Basic business. If your low prices cause more total inventory sold, then your net income grows despite making less profit per unit sold. Manufacturers could do this too, but the problem with that is what Carson Dyle said -- if a manufacturer undercuts the retailers they are trying to sell through, the retailers won't want to sell the product so the manufacturer ends up losing sales in the long run.

 

[Destiny]

The Brand's Website = MSRP = Manufacturer's Suggested Retail Price

NewEgg sells alot of things for low prices and make money elsewhere... They also make money from companies paying to be on those e-mail blasts...

 

[Meghan54]

There's also been an undercurrent that Newegg sells a bit of grey market goods, which is why Newegg has so many different return policies...some of which allow you to get a refund on a returned product and some of which only allow you to exchange the product for another, no refunds---and this despite the product that's limited to exchange only is a retail packed item, brand new, indistinguishable from a similar refundable item.


Ex:

VGA Standard Return Policy

• Return for refund within: 30 days
• Return for replacement within: 30 days

VGA Replacement Only Return Policy

• Return for refund within: non-refundable
• Return for replacement within: 30 days

Memory Standard Return Policy

• Return for refund within: 30 days
• Return for replacement within: 30 days
• Restocking Fee: Yes

Memory Replacement Only Return Policy

• Return for refund within: non-refundable
• Return for replacement within: 30 days

Monitor Standard Return Policy

• Return for refund within: 30 days
• Return for replacement within: 30 days
• Restocking Fee: yes

Monitor Replacement Only Return Policy

• Return for refund within: non-refundable
• Return for replacement within: 30 days

Standard Return Policy

• Return for refund within: 30 days
• Return for replacement within: 30 days
• Restocking Fee: Yes

Limited Replacement Only Return Policy

• Return for refund within: non-refundable
• Return for replacement within: 30 days

Why would you need, for almost identical, brand new retail products, to have two separate return policies, one that lets you obtain a refund and one that prohibits refunds, only replacements----this has been one of the questions that goes unanswered.