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Tough one to beat

Started by query, August 27, 2004, 17:26 hrs

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query


Carskick

Looks like a great deal.

One thing I've always noticed, usually on stuff that's a really good deal is that the specs don't quite match up. The specs say 3x PCI slots, yet the picture shows 5. Weird. Other than that, looks like a great find.
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iansl

#2
Problem is that this great deal is offset by the fact that Intels are soooo overpriced...put it up with the below processor against the below combo (full price) and you'll see what I mean...

Sempron 2800+ ($115)
http://www.newegg.com/app/ViewProductDesc.asp?description=13-185-029&depa=0
($66)

= (in cost) > (in power)

Pentium 4 2.6C ($176)
Soyo Mobo ($5)

Yes, because of the rebate a Celeron D320 would win in price wars, but that's only because you can't get a decent mobo and a decent AMD processor for that little chage...admittedly you could use one of those $25 mobos and a $50 AMD processor, but where's the glory? It'd have to be an earlier, clunkier model etc...but anyway, out with the rant. It is a great deal...
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Whizbang

Quote from: query on August 27, 2004, 17:26 hrs
This'd be a tough one to beat if you're building a P4 system.

http://www.newegg.com/app/viewproductdesc.asp?description=13-139-144&DEPA=0
I've seen stuff sold like this before, and I have never figured out the logic of it.  Anyone care to clue me in?   ???

query

Rebates are one way to clear stock that might otherwise not sell in good time - just try to sell a new car in the US market without incentives, for instance - just about everything comes with sales incentives - more, for the models few want to buy.

The rebate allows the manufacturer two months of float on the money before the rebate is due the customer (not to mention that some won't bother sending them in).

pat

I?ve often thought rebates were a way for manufacturers to inflate their sales figures.
Although I don?t know this to be true.
If a manufacturer sells X amount at full retail it would all go in the gross sales column. The rebates I?m guessing would be a write off under advertising or perhaps some other form of marketing?
Anyway I would venture to say that no mark down of gross sales would be affected by the rebates.
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query

I'll defer to an economics expert on that issue - but I suspect a rebate is one quick way to lower prices and clear out inventory -- and not everyone will jump through the hoops needed to obtain the rebate.  For those that do, the addition to the companiy's data warehouse of your name, phone number, and email address can be valuable in many ways.


Whizbang

The "hope-they-don't-send-it-in" theory sounds good.  The idea of having additional liquid assets is veeerrrry risky, but is done many times.  Both ideas would make me need to live on Tums.   :o

Carskick

If it costs a company $20 to buy or make something they sell for $60, and the offer it free witha $60 rebate, they only need 1/3 people to not send one in and they'd come out even. It's probably a mix of clearing stock and hoping people don't send them in. I'd bet over 95% of people send their rebates over $10 in, however.
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Mark H

A company may want to phase out and discontinue a certain item. To quickly eliminate stock, they can offer rebates to basically give the item away quickly. The alternative is to do a write-off and then they have to pay recycling costs or disposal costs.

Some manufacturers like Nikon offer rebates to bring their items in line with where the price should be given the current market conditions. It is better than raising an lowering prices to meet the market conditions.
Enjoy the nature that is around you rather than destroying it.

Whizbang

I suppose it is good free "active" advertising.

Hoot

Quote from: Carskick on August 28, 2004, 22:47 hrs
If it costs a company $20 to buy or make something they sell for $60, and the offer it free witha $60 rebate, they only need 1/3 people to not send one in and they'd come out even. It's probably a mix of clearing stock and hoping people don't send them in. I'd bet over 95% of people send their rebates over $10 in, however.

God Carsick, Your exctly right. It's just a numbrs game. Period. Well said.