And if you'll hop on over to the daily view, you'll see quite a lot of green numbers. Those are gains. A crash isn't a gradual downslope, it's a total nose dive. These are global numbers, not just American ones, and gamers represent a minority community. Of course we're most affected by hardware shortages! But the way we see things involving other markets that depend on these same components isn't the truth of the matter, it's just how we feel. Take that as a valuable lesson learned, and don't believe all of the clickbait titles and hyperbole.
It wasn't that miners were gobbling up all of the cards from the stores and online shops, it was that the stores and online shops weren't even receiving them in the first place. We've been waiting for a card to return to stock at B&H Photo for three months now. It hasn't made it there yet, then it was later discontinued. And the reason why the retailers didn't receive the cards is because the manufacturers intentionally shorted the supply. They went and offered over 700,000 GPU's to mining farms. They need them to make money...why wouldn't they buy them??? What did this do, and what does it do every year that they do it? It causes an increase in demand due to material decreases, which causes prices to climb. Duh! Economics 101, people! It's a scam! Know what else? Brand loyalty does nothing to fix that. In fact, it only makes the problem significantly worse. Each time you pay more than MSRP for a card that is superficially in short supply, the next generation is pretty much guaranteed to cost more, even if the cost of production decreases. Companies base their pricing strategies on the results of focus groups, at which consumers are paid to offer information on what they're willing to pay for a product or service. Most often, a potential customer is willing to pay more for something than it's actually worth, meaning that a company has already performed the full assessment - including initial profit margins. Consumers offering to pay even more for offerings will widen that profit margin. The common rebuttal to this reveal is: but R & D! This is incorrect, and often fired off by non-economists who also have never even been business students, market analysts, business owners, managers, etc. They're not basing this assertion on anything but their own suspicions and biases, and don't have the information available to them to back that claim up. Research and development is mostly done beforehand so that offerings can be justified in the eyes of investors, including business leaders and owner(s). It's general overhead. True enough, it is an ongoing process, however, those costs go down over time. When you readily pay $1400 for a phone that costs only $600 each from conception to store shelves [this also includes marketing costs], you have willingly become a huge part of the problem. Profit margins considered, no one should be paying more than $800 for it. But bias and brand loyalty. See, for that $600, literally everyone along the way has been paid already. Yeah, it even includes labor. So, just why are you happily paying 2.3 times the actual value of the device? It's because you want to; FOMO. You tell them to set the price that high, so they do exactly that, and then you complain about the prices later. But as long as you continue to run out and pay those astronomical prices, they have no good reason to lower them. So, they don't. This is the same thing happening in the PC components space. The background work, costs, and pricing have already been planned out; you're just telling them how much free money you'll give them for it. We got this totally right. You're welcome. Think we don't have it quite right? Too bad! You're wrong. I was head of my class in business administration, my little brother holds a masters in business finance and holds these discussions with me, our glorious leader owns several businesses and is an experienced investor, and we have peers who have worked these exact jobs in corporate settings. Take it from us, you're being tricked. We just care enough about you to tell you. Fight back.
Peace! April 12, 2022: This article was edited to fix on punctuational error and include a missed link. No statements, verbiage, or other links have been altered. |
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