Q6600 jumped in price??????

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suspenz

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ok i regularly check newegg.com and zipzoomfly for the quad core cpu. i went on this morning and i found that the pricing had jumped from $485 to $559 (at newegg.com). what happend there, why did it go up in price. Are they trying to make as much money before they drop in price or are they no longer gonna drop pricing for intel's quad (Q6600). I notice zipzoomfly.com has it at $475, but usually newegg and zipzoom battle to have the lower prices. Is zipzoomfly going to raise their prices also? Can anybody shed some light on this.
 

kitchenshark

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I would suspect maybe a couple things happened. One thing that Newegg seems to do (this is only from my own observations), is that Newegg will slowly lower prices on a popular component, then raise them again once demand has built up. Another thought I have is maybe they want to capitalize on the natural demand on the Q6600 before prices are cut (just like you stated). The last thought I have, and the least likely in my opinion, is maybe the Q6600 price won't drop after all. I believe that the price will drop though.

At least I want to believe the price will drop sub $300 because I want one badly for myself! :D
 
I saw that too. Newegg has this thing where the price will be down during the week, but when the weekend hits, up they go. Trying to maximize profits, as more people probably shop there on the weekends ... ? Watched this happen for about 5 weeks before I bought my last video card.
 

suspenz

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At least I want to believe the price will drop sub $300 because I want one badly for myself! :D

yea im want a quad real bad also...thats why ive been holding off my new build and observing the pricing dropping on intel's cpu. seems like the rest of the intel's cpu hasnt changed but just the q6600. most likely its just a way of making more money before it drops in price for july. (hopefully!!) COME ON JULY 22ND!
 

zimba03

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I cant believe it...

The price for "Intel Core 2 Quad Q6600 Kentsfield 2.4GHz LGA 775" today (4th July 07) at newegg.com is 659 $ with 5 $ saving...bringing the final price to 654 $.

The price hike looks scary :(
 

Kronos76

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Regarding Newegg I believe what happened is that they have an overall target price they have to bring in for the overall quantity of Q6600s they have in stock, once the sold a bunch at the lower price the realized that they could raise the price and try and get a few people who may not know what I was up and coming. Honestly, with all the other etailers out there focusing on what is coming sometimes you just have to avoid the egg! I like shopping there but they are getting pretty big these days and don't always offer the best prices anymore. I like the post to Frys on the Q660, went there today, seen the price was the same, and bought mine today, why wait for July 22nd, for what $21, no way, there is no guarantee that the etailers will even offer it at COST!

In short "Carpe diem" Seize the Day!
 

zenmaster

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Here is a simple answer.

They do not want to sell you one.
Very Simple.

Why?

Perhaps because they are low on stock and they do not want to place an order for more until the prices drop and they can order large quantities at the new lower price.

Simple Supply and Demand.
Their supply is low.

They do not want to but 1000 right now for $$$ when they can buy 1000
for $$ in a couple weeks and be forced to sell them at a loss because the manufacturer's price has dropped.
 
My guess is that when they start to run low on supplies they raise the price so there supply will last longer and they'll make larger profits. If you had too much of something you would lower your price and make profits on selling mass quantities. If you were running low on something you would start charging more. It's called supply and demand. Although many other people have proposed ideas that make sense too.
 

Stevemeister

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That's odd - could be a loose connection. Make sure there is thermal paste between your CPU and heatsink. Does you MB have a diagnostic LED setup - my MSI board has one and the light sequence lets you know how far the CPU has got in the boot process before it encounters a problem.
 

zenmaster

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How far into the article did you get?
LOL!!!!!

"The model is fundamental in microeconomic analysis of buyers and sellers and of their interactions in a market."
 

djack171

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I saw your post about the fry price and almost died! I proceeded to go to the site and order one till I thought "Wait a minute". So I Called and they dont get any in until July 21st Lol. I was like WTF! So Its pretty much the same thing as getting one on the 22nd.
 

Zorg

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How far into the article did you get?
LOL!!!!!

"The model is fundamental in microeconomic analysis of buyers and sellers and of their interactions in a market."
You are right I had, a brain fart. What I meant to say is that supply and demand is based on the aggregate supply and demand for the particular product or service and how it effects the price equilibrium. Not that one supplier may be running low and decides to gouge based on that fact. So your use of supply and demand in that context is still not correct.
The model predicts that in a competitive free market, price will function to equalize the quantity demanded by consumers and the quantity supplied by producers, resulting in an economic equilibrium.

Edit: I fixed my previous post.
 

zenmaster

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The laws of economics are far greater than summerized on that page.

Lets review the sentence from the 1st paragraph

"The model is fundamental in microeconomic analysis of buyers and sellers and of their interactions in a market."

As both a Buyer and a Seller, NewEgg if it were a wise company would use the laws of supply and demand in both it's purchasing and selling decisions.

NewEgg has X number of processors Q to sell at a Price of Y.
They will not be able to get any more of X at a reasonable price until Date Z.

NewEgg has determined that it will run out of processors Q prior to Z.
To prevent running out of Q prior to Z, they raise Y to a point that X will not be exhausted before Z.

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What you term as "Gauging" is actually smart business which is what allows NewEgg to continually have some of the best prices.

NewEgg knows that the demand for the Q6600 will be dropping since smart shoppers know a price cut is coming July 22nd.

As a result, if they ordered another 1000 Processors at current prices from Intel, they would not be able to sell them between now and the price drop.
The result is they would then be forced to sell them at a huge loss after July 22nd.

The other option would be to sell you a processor now but not ship it for weeks until the post July 22nd processors arrived.

The option NewEgg has chosen is the wisest and fairest to all.
They have a limited "supply" of processors they are able to ship between now and July 22nd. As a result, they have increased the price to reduce the demand they see for those processors. As a result, those who really want to buy that processor from NewEgg for whatever reason will still have that option but those who choose to look elsewhere may.

Supply and Demand can work in both Macro and Micro economic settings.


If you do not believe the cause to be "Supply and Demand", what is your thoughts on the reason for the price change?

1) A Random Price Change without cause?
2) Typo?
3) Gauging? Why would they choose to Gauge now?

NewEgg has become one of the leading if not the leading Computer Parts supplier in the United States. This is likely not by accident but by shrewd business practices. (Good Prices and Customer services can be shrewd)
As a result I would expect the reasons that you apply to NewEggs actions in this case be based upon reasonable and well thoughtout.

I.E., Not a "Brain Fart" - whatever that may be.
 

Zorg

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Before we get into the whole discussion of supply and demand let me say that I like, and shop at Newegg even though their prices are not always the best. I pay a little more for peace of mind. That said, Newegg has dropped the price on the q6600 to $480.00 back down from $654, assuming the earlier poster was correct. Now they are following supply and demand. Let me try to explain this one more time. Supply and demand is based on the entire supply and the entire demand. The supply curve is based on the entire aggregated supply, for the Q6600, available for all sellers. The demand curve is based on the entire aggregated demand, for the Q6600, for all buyers. Therefore it is a macro concept i.e., market wide. Although the law of supply and demand is a macro concept it still falls under the study of microeconomics as opposed to the study of macroeconomics. Hence, the brain fart of including the word economics in my initial post. Companies will try to make an educated guess as to the supply available in the industry, and determine the equilibrium price, and then set their price accordingly. But really what they would do is check the prices set by other sellers and price based on that data, because it's a lot easier.
NewEgg knows that the demand for the Q6600 will be dropping since smart shoppers know a price cut is coming July 22nd.
Based on the law of supply and demand the price would drop, assuming no shift in the supply curve. The new equilibrium price and quantity would be lower. Of course the supply curve and demand curve move all the time so it is very likely that the supply curve is shifting as well. All that I'm trying to explain to you is that the law supply and demand is based on aggregate numbers for supply and demand across all sellers and all buyers for a particular product or service. Read the Wiki page again and look at the graph, it's all sellers and all buyers. It appears that since Newegg's new price is considerably lower now, they have determined that their price was far to high in relation to the new equilibrium price, based on the reduced demand, and they weren't selling any/enough based on their price in relation to that of their competition. So they lowered their price, to what appears to be below the equilibrium price, based on a quick search of suppliers prices for the Q6600.
The laws of economics are far greater than summarized on that page.
I appreciate you letting me know that Wiki didn't have all of the information. I don't need Wiki, because I have a degree in Economics.

Edit: SP
 

zenmaster

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You keep applying far too simplistic ecomic views.

"But really what they would do is check the prices set by other sellers and price based on that data, because it's a lot easier. "

If that was all they did, they would either always be sold out or never sell any. They all adjust their prices to what people will pay and compare that to their cost. They then determine if the total profit will be higher by lowering the price and increasing sales at a reduced profit per item.

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"zenmaster wrote:
NewEgg knows that the demand for the Q6600 will be dropping since smart shoppers know a price cut is coming July 22nd. "

"Based on the law of supply and demand the price would drop, assuming no shift in the supply curve. The new equilibrium price and quantity would be lower."

Again, this is vastly over simplified. That assumes that NewEgg wishes to maintain the same level of sales. If that level of sales would exceed their inventory, it would not make sence to do so.
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"It appears that since Newegg's new price is considerably lower now, they have determined that their price was far to high in relation to the new equilibrium price, based on the reduced demand, and they weren't selling any/enough based on their price in relation to that of their competition. So they lowered their price, to what appears to be below the equilibrium price, based on a quick search of suppliers prices for the Q6600. "

Again, far too simple analysis. There can be a myriad of reasons for the pricing. One - Customer Complaints. Two - Realization that reduced sale of one item may lead to loss in sales of other items. Three - They received additional stock or perhaps arranged for early shipment of cheaper CPUs.
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"It appears that since Newegg's new price is considerably lower now, they have determined that their price was far to high in relation to the new equilibrium price, based on the reduced demand, and they weren't selling any/enough based on their price in relation to that of their competition."

So, at least we know agree that NewEggs's price does effect consumer demand for their product. So we now have settled demand.

We must now look at Supply.

Unlike in books, there is no "CPU" fairy that magically restocks inventory each time one is sold. For "NewEgg" to get more CPUs, they must buy them from somebody else. The "Somebody" in this case is generally large distributors or likely Intel themself since their prices are so good. Now to restock, since it is not done by the CPU fairy, is going to be very costly. They are not going to buy 1000 CPUs for $400 Ea and Sell for $500 each is they can only sell 500 CPUs prior to the price dropping to $266 and a forced loss of over $100 per CPU. Hence their supply is very limited. It matters little to them how many Intel has in stock or anybody else. The need to manage the supply they own and control it with the price they set.


In none of your discussion about the price NewEgg would charge do you consider the cost of acquistion, profit, loss, overhead, etc.. etc... etc...

Luckily my primary Economics professor in College was a sr memory of the Federal Reserve Board under the Nixon administration and really understood Economics from a real world perspective.

As another professor taught, "If its good in theory but not in Practice then its not good theory." It's all about the practice. Everything must be accounted for.
 
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