Earlier this week we noticed that Newegg's prices for Intel SSDs were much higher – in some cases, more than twice as much – than the manufacturer's suggested retail price. (See the original story here.)
Newegg has responded to our inquiry regarding the price with the following statement:
"Thank you for bringing this to our attention, we sincerely apologize for any inconvenience this has caused. We are aware of this issue and we are working exclusively with Intel to provide these products in greater numbers to meet the growing consumer demand. We apologize again for the inconvenience and we would like to assure you that providing the best online experience possible is our top priority."
Clearly the price increase is tied to supply and demand. With the recent surge in demand for Intel SSD parts, the dwindling stock at Newegg has driven up price.
Intel PR manager Dan Snyder told Tom's Hardware, "Intel has not raised distributor pricing but the demand for 34nm SSDs is outstripping supply, which Intel is addressing. We cannot speak to pricing strategy at specific etailers."
Have you been hot for an Intel X25-M SSD lately?
I wonder if Newegg's system was setup to automatically increase the price when stock fell below a certain limit. I'm not sure what Newegg would need to "work" on, just lower the price back down.
I guess i will shop around a little more and not trust them as much from this point forward.
And besides that, it was very likely under automated control anyways. newegg.com has hundreds of thousands of different products to sell. It cant keep a greedy eye on every single one of them.
Get over it.
I have noticed as the seats become more sparse, prices increase. This is the same concept (supply and demand), different industry.
I think there should be laws in place to protect consumers from price spikes. I paid $2.90 for a bag of ice @ the lake last weekend... I will never understand how ice is so expensive! It's fuckin Ice! and we aren't in a desert.
These type of posts get really tiresome. Look, it really is economics 101: if supply goes down, then price goes up. It is just that simple. Put it another way... let's say you won some tickets for a really hot, sold-out concert, but for a band you don't really like. Are you going to sell those tickets at face value, or are you going to sell them to the highest bidder? If you were to find an old comic book in your closet, then you come to learn it is particularly valuable because it was a limited print run, are you going to sell it for the 25 cents it originally cost, or are you going to sell it for the current market value?
One last example... let's say you own an online store. Your prices are normally very low and you move a lot of inventory. But this new item, the Widget Pro 2000 XLR, is a pretty hot selling item and your supplies are starting to run low because the manufacturer isn't making them fast enough. Do you sell at the current price and get bought out by a competitor, or do you raise your prices to current market value?
Businesses exist to make money. They aren't there to provide people with jobs and benefits, or to help consumers (which is not to say that those aren't natural results of running a business, it's just not the REASON you are in business). This is not a bad thing. However, if you find it unpaletable, feel free to shop somewhere else... that is YOUR greatest freedom and power as a consumer.
And... there's absolutely nothing wrong with that business model (nor the recent trend of charging for checked luggage). It's just business. And like all other businesses, the airline industry exists to make money (or to try anyway).