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Old 01-17-2003, 01:41 PM   #1 (permalink)
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Does anyone know what distributor places like Newegg and other retailers on pricewatch get their stuff from? I've been checking places like Ingram Micro, DandH distributing, Vtech etc and they are all higher priced than probably %50 of retaillers on pricewatch.

Anyone have any ideas?

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Old 01-17-2003, 09:38 PM   #2 (permalink)
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Those prices you see are probably their retail price not wholesale e.g. why would Newegg set something up where they get a great price by buying in bulk when they can just buy a few when they need it for the same price.
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Old 01-18-2003, 07:47 AM   #3 (permalink)
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D and H and Ingram don't HAVE retail prices, they are reseller only. Even buying in Bulk from these major distributors there's no way you could touch newegg prices, you'd be losing around $25 per processor.


The distributor these places use must be the closest guarded secret in the internet. The CIA should take some lessons from em, as i've seen more leaks for national security than distributor names.
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Old 01-18-2003, 01:55 PM   #4 (permalink)
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I would also like to know. It would depend on the deep pockets of the distributor. But I have my doubts. I've seen some small Mom and Pops with equal if not better prices. I don't believe they all can't buy in bulk. I think a large percentage take high risk on sells margins and barely squeak by.
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Old 01-18-2003, 02:11 PM   #5 (permalink)
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Don't think you're going to find the answer to this question. Probably takes deep pockets. More than likely they buy direct from the manufacturer's themselves using their resellers license. Paul Muad'dib-seeing your name gives me the strange compulsion to go dust off the VHS copy of DUNE
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Old 01-18-2003, 02:13 PM   #6 (permalink)
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Here's the price chart from AMD's website and thats the cost per unit when you buy atleast a 1000. I've seen Newegg sell it for cheaper.
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Old 01-18-2003, 02:21 PM   #7 (permalink)
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Yup I saw that list at AMD as well which confused me even more as you have to buy 1000 processors to get that price, yet the first 3 pages of pricewatch advertisers are under the $193 bucks that a XP 2400 sells for direct from AMD, and alot of those places are small places so you can't tell me they have deep pockets.

There has to be a distributor out there that has decent prices that all these places are getting this stuff from. I mean it's not just processors either, but memory etc. EVERY single thing i've priced from D & H, ingram, chipco, AMAX, Synnex etc was cheaper for an end user to buy online if they spend just a couple seconds on pricewatch.

I don't understand how new resellers are supposed to compete with these prices when the distributor that has em evidently is more secret than the truth about the roswell landings.

Someone somewhere has to know where these places buy their stock and is willing to spill the beans.
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Old 01-18-2003, 02:56 PM   #8 (permalink)
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2 guys in 'Jersery who have a load of hardware that just happened to fall off the back of a truck? I tried to circumvent a middleman when I ordered a high priced custom fan grill. I bought it from PCMods and it came in a package marked PCToys or something similar. Tried to go to there website but couldn't get past their front page without a reseller license #. Thought buying it directly would be cheaper but I couldn't even get a product list much less pricing. I don't know how distributors could buy cheaper than the manufacturer. They have to get those processors from AMD. Perhaps there is an even bigger discount for buying extremely large quantities? Dell buys their processors(intel) directly but don't pay for them until they take physical posession of the CPUs from the delivery truck and pay up-to-the-moment market prices. This is one way they get such great deals and don't get hosed on stocking a bunch of processors that are overpriced 2x as much as they are by today's market value as they were yesterday. Saves them warehouse space and # of employees which gets passed along to the customer. Don't know if this help(probably not) as some of this is speculation and conjecture. Finding the distributor seems a closely guarded secret but I suppose that is the way the retailers want/need it to be so they can stay afloat.
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Old 01-18-2003, 03:07 PM   #9 (permalink)
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Yeah i can understand them wanting to keep it at least somewhat quiet, but we are a retailer. We have a Tax ID number. We just want to break into the business and the only distributors that are coming up through searches are the ones i've mentioned who's pricing is worst than most retailers.

I think that Ingram and D & H are 2 of the biggest distributors so if they aren't buying in the highest quantities then I dunno who's out there hidden that is buying more?

I swear the computer components industry is the toughest to break into as a new retailer. I've never seen any other industry so eager to hide it's supply chain.
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