Computer Store Ripoff?

donmeister

I recently went into a 3 computer shop's to see how much 2GB of ram was for my laptop was,its €22 online,I was quoted between €80-100 for it! Crazy! I laughed when I was told this,and walked away!

I ask the question,how can they manage to cheat customers like that by marking up the price by nearly 300-400%?What going on?

gerrycollins

if your going to pay then they are going to charge.obviously you didnt pay well done

might sound simple but it is. also people are getting clever and buying this kind of product on line so the stores are getting less and less business so they jack up the prices to make up the difference imo. they dont look at the bigger picture.

Heinrich

Now are we comparing exactly the same ram? Here is an idea of pricing:
http://www.crucial.com/eu/store/listmodule/DDRII/~HS~/list.html

Prices vary from manufacturer, quality, performance etc. Maybe you could give us the exact spec of the product you feel you are being ripped off with so we can trawl the online shops for comparison.

There is also shipping charges to consider in the price.

I get a fair amount of stuff from a small outlet in Fairview and their prices come near enough to some of the online shops when you consider all the costs. They will accept returns without any hassle and there's no need to go traipsing to the post office in that event.

Try to be objective - ranting is tiresome!

donmeister

The ram was 2GB DDR2 PC2-5300, don't worry Ive done my homework,and it was V-data,exactly the same as online for €22!

All the staff (of all 3 store's) where really condensing as if I didn't have a clue what I was on about aswell,and I'm wondering now if they all tried to charge me that mad price because they thought I was ignorant?

mickoneill30

gerrycollins wrote: »

might sound simple but it is. also people are getting clever and buying this kind of product on line so the stores are getting less and less business so they jack up the prices to make up the difference imo. they dont look at the bigger picture.

I think they are looking at the bigger picture. To stock every type of RAM that somebody might need would a) be expensive and b) result in a lot of stock devaluing because there's lots of RAM that wouldn't be sold. An online retailer doesn't have to worry about this. They either have the stock in or they get it when the customer orders. Either way they don't have the customer standing in front of them looking for it now. You could open an online retail store, list every type of stock for a reasonable price and have nothing in stock. As long as your seller can ship to you or your customer quick who cares. Those 3 guys could have had that RAM sitting there for a few months and the cost price could have been more than the price on the internet now.

The people who are buying this stuff from shops are either not knowledgable about the product or desperate for it. I've often gone to a PC World to buy something at an inflated price because I needed it now and not in 3 - 5 days. At the times I did that the price was worth it to me. But as more and more people shop online you can't blame the retailers (too much:D) for not having the odd item we want in stock or having it at an inflated price if it's not a common seller.

I used to work in a shop (about 15 years ago). We sold PCs. We'd make about 5% - 10% on a PC. If the PC didn't sell for a month chances are it was devaluing at more than our margin and that was before the internet. We also sold games. I did have to explain to customers that when we bought 10 copies of game X that our buy price was more than the sell price of other shops because they could buy in the 100s or 1000s. That shop doesn't sell games anymore.

donmeister wrote: »

All the staff (of all 3 store's) where really condensing as if I didn't have a clue what I was on about aswell,and I'm wondering now if they all tried to charge me that mad price because they thought I was ignorant?

There's no excuse for that though. Customer service in too many shops down here is crap. I was in Argos in the North last week. I was getting embaressed because the lady was so (overly) polite to me, that doesn't ever happen down here.

Guy:Incognito

donmeister wrote: »

and I'm wondering now if they all tried to charge me that mad price because they thought I was ignorant?

Unless the shops were staffed by the owners I dont see how you can sya that. The guys in the shop take the item and scan it or input the product code, then the price pops up. Not much advantage to them to make more money for the owners.

rubadub

mickoneill30 wrote: »

Those 3 guys could have had that RAM sitting there for a few months and the cost price could have been more than the price on the internet now.

Exactly, and they could have been ripped off themselves in the first place. I am also presuming you did not include postage in your €22 price.

sprinklesspanky

Consumer protection and rights suck in Ireland the policy is if you're stupid enough to buy it you deserve what you get. We are a country of people compelled to rip of one another. Hence the phrase Rip Off Ireland. Me, I do all my shopping online, and I shop around. I bought 1GIG of RAM of Crucial for €15 including shipping a month ago, in the shops they wanted €70. Shower of bastards really.

Look at the prices in the north and then how much the pound is worth then compare it to the prices in the shops over here. We've been getting ripped off for years and smiling about because no one wanted to cause a fuss. We deserve everything we get.

tricky D

Heinrich wrote: »

I get a fair amount of stuff from a small outlet in Fairview and their prices come near enough to some of the online shops when you consider all the costs. They will accept returns without any hassle and there's no need to go traipsing to the post office in that event.

Highly recommended. So much so, that I'll name them:

http://www.marxcomputers.ie/

(no affiliation)

Cabaal

its not a ripp-off, they can charge 500e in fairness....nobody is putting a gun to anyone's head telling them to buy it.

For all the other places that are cheaper there's always somewhere else like ebay, its your job as a consumer to shop around for the best price and not be stupid enough to pay for the first price your quoted....if you are this stupid then just think of it as a stupidity tax for any extra money you forked out.

dudara

As an example, I was in Maplins this morning thinking of buying a wireless router. Cheapest on offer was E50, and although I was tempted to buy it purely for the convenience and speed of getting it there and then, I decided to buy online later.

When I visited DABS and Komplett, the prices looked good, but by the time I added the delivery charges, they weren't far off the Maplins prices. That was a bit of a surprise to me, but there you go.

I eventually bought on eBay for about 60% of the price.

dotsman

As already said, it's not a ripoff.

A ripoff only occurs when a person is forced to pay said prices, either due to a monopoly/cartel, such as electricity/telecommunications/medical/public services etc or when the seller tries to hide extra charges (such as eating in a restaurant and getting charged for the bread/water that they provide you without you asking and not mentioning to you that they would charge for it) or when the item is not as described (ie fake/faulty or somehow inferior to what was advertised).

In this specific case, there are several legitimate reasons for the price discrepancy:

1. Economies of scale. An online retailer is selling to a huge number of customers across many different countries. Therefore, they have better purchasing power from the suppliers. They also only need to make a smaller margin to be profitable.
2. High Street Costs. The shop would have to pay much higher rent/lighting/wages/rates/insurance etc than an online retailer working out of a warehouse in the middle of nowhere.
3. Devaluation of stock. Due to the low turnover of stock, products as volatile as RAM quickly depreciate in value. It is very possible that the RAM has been sitting on the shelf for the past year and was purchased at a much higher price than it is now.
4. Extra Services. For the most part, people who are buying components etc from retail shops are not as PC literate as you and me. They don't have a clue what they are looking for and are looking for the reassurance of a human recommending that this specific RAM will work with their PC. They also want the reassurance of being able to easily return if it doesn't work. Also, there are many people who would be uncomfortable buying something online (especially when they don't have a clue of what they are looking for).
5. Speed. Many people are willing to pay extra to have th product immediately, rather than wait a week for it to arrive in the post. Perhaps, rather than upgrading, they are looking to replace a faulty/blown part and cannot do without their PC while they wait for the replacement.

I will always buy my Electronic products online as I am very PC literate and know exactly what I am looking for. I am also very experienced in buying online and am not spooked by all the credit card fraud etc that many people would fear.

However, I know nothing about cars. If I was having a problem with the engine of my (non-existent!) car, although I know I might be able to buy the specific part online for much cheaper, rather than get it wrong and waste my money (or even damage my car!), I would be willing to pay the extra of going to my local mechanic and having them supply the part and take responsibility for fixing my car.

donmeister

rubadub wrote: »

Exactly, and they could have been ripped off themselves in the first place

Well thats not my problem,now is it? Why should I have to pay a mark up of 300% for that? Postage is €5.

Im just baffled about how all these guy's are still in business...it was the same with the GPU's and HDD's.....should have just bought online in the first place,argh,and this whole fiasco would have never have happens.....oh well,live and learn I guess! :rolleyes:

rubadub

donmeister wrote: »

Well thats not my problem,now is it?

It is the reason they could be charging that price. I do not see any "problem" anywhere.

donmeister wrote: »

Why should I have to pay a mark up of 300% for that?

You do not have to, thats the whole point.

donmeister wrote: »

Im just baffled about how all these guy's are still in business

Read the previous post about the car parts. Same thing here, most people using PCs do not even know what ram is, let alone know the correct spec.

donmeister

So the whole point of this argument is,if you don't do your homework before buying a product,your basically screwed. Their con-artists in my opinion. And car-parts online??

dotsman

Well, I see it the other way.

I see Retail Shops (and they're associated prices) as the standard model, but for those of us who are familiar and comfortable with purchasing the correct components (or any product/service) online are able to take advantage of the reduced cost of this model.

If someone is familiar with DIY and comfortable do so, they are able to carry out maintenance around their home for much cheaper than the standard person. A person familiar with gardening can grow their own vegetables for cheaper than the supermarket. A person knowledgeable in finance can sort out their own investments/taxes without requiring the costs of an accountant/advisor etc. The list is endless.

I don't know how many ways I can say it. The €80-€100 price tag is the standard price. Some people have the advantage of knowing how to get it greatly discounted.

donmeister

dotsman wrote: »

The €80-€100 price tag is the standard price. Some people have the advantage of knowing how to get it greatly discounted.

Well the standard price in Galway is €35,in a similar sized computer store,so

mickoneill30

donmeister wrote: »

Well the standard price in Galway is €35,in a similar sized computer store,so

I'm presuming in these 3 price comparisons that you've done that it's the same make and model of RAM. Is the guy in Galway making a profit on his item? Did he buy his stock this week or a few months ago? Is the price of running a business in Galway the same as running it in Dublin? Or maybe the guys in 3 don't give a crap. That's possible too. But I'd say it's way more likely to have been bought by them for something like €50 and now they have to sell it at a profit + whatever other taxes go on it. What's more likely is that they'll eventually discount it enough to sell it and then just not bother with that type of stock anymore. The 3 stores have high profile shops with not a hell of a lot of stock in expensive locations. They pay for those from their sales obviously. Those are costs an online guy doesn't have.

It is overpriced here but shops can't just keep cutting prices on stock that becomes cheaper elsewhere. They can to a certain extent but they still have to make a profit.

Don't worry though. I'm sure lots of shops will be letting people go as they're making shag all profits these days. So a lot more people will have to go online. Of course then there's postage costs, having to wait a week (hopefully) for something to arrive, ordering something that we haven't physically seen, issues with getting something that we can't operate or is faulty. But online is the way it's heading. It's generally a lot cheaper though so you're getting what you pay for. It is if you know what you're doing (like the poster said above) but for those who don't they're going to be stuck.

Edit: Imagine someone like general parents looking for more memory for a computer. Would they be able to get it online? Are they going to have any kind of clue what 2Gb means or DDR2 or PC3200 or even motherboard? Who do they get to fit it if they don't have somebody that has a clue about computers?

Cabaal

donmeister wrote: »

So the whole point of this argument is,if you don't do your homework before buying a product,your basically screwed. Their con-artists in my opinion. And car-parts online??

There not con-artists they are providing a service, its not there fault if people come to them first and buy at the price they advertise, again nobody is making anyone pay these prices.

I'm curious why you even bothered to price the ram in a shop, anybody thats anyway computer savy will just price it on-line and fit it themselfs, if your not comfortable at fitting it yourself or buying the correct model on-line then a highstreet store is the best option for these type of people.

Its pretty much the same as doing work on your car, if you know what your doing you can buy parts and fit them yourself for very little but the vast majority don't and so pay a garage to buy them for them and fit them.....nothing wrong with it it just suits the majority of people.

mickoneill30

donmeister wrote: »

And car-parts online??

http://shop.ebay.ie/?_from=R40&_trksid=m38.l1313&_nkw=car+parts
http://www.micksgarage.ie/

That's just 2 off the top of my head. There are lots of garages online. You can save a fortune with car parts if you know what you're doing. I don't with cars so I just give it to my mechanic and get it back fixed. Costs more but there's no messing about.

rubadub

donmeister wrote: »

So the whole point of this argument is,if you don't do your homework before buying a product,your basically screwed.

If you do not research then of course you have the potential to pay for something that could be gotten cheaper elsewhere. When I was 6 years old getting pocket money I knew to buy my bars & cans in the supermarket and not the newsagent, not that crazy a concept to grasp. Shops differ in prices, and with all the recent threads people are now realising, shock horror, that stuff costs different prices in different countries too. Did people honestly not know that before?

donmeister wrote: »

And car-parts online??

I bought a capacitor for my tumble drier online, €8 delivered. I knew how to check that it was the capacitor which was broken, and how to read the values off it and get a generic replacement. The proper one would have cost around €60 from the manufacturer, and if I did a call out you would probably be talking over €100 for it fitted.

I have searched and got car spares for guys in work too, at a fraction what they are here. Many service places do not care about the cost of parts, they buy from convenient dealers and pass that price on to you direct, with labour.

You are confused at buying car parts online, but people into cars know what to look for. You knew how to spec your ram, most would not and would probably say to you "wow, you really know your stuff, I wouldnt know what is in my PC or what to be ordering". PC shops etc offer this as a way of service and can include it in the price, whether you use it or not. I expect most sales of ram etc take longer than your transaction would have.

Cabaal wrote: »

I'm curious why you even bothered to price the ram in a shop, anybody thats anyway computer savy will just price it on-line and fit it themselfs

Yes, strange alright, I would not even think of buying the likes of memory cards or ram in a shop here. Some might do it just so they can convince themselves they made a good saving, and to have a moan.

A guy in work came back with a load of staropramen from up north saying he saved a fortune since it is €2.80 a bottle here, thing is he had never heard of the beer before, and would usually only buy €1 beers down here.

ejmaztec

rubadub wrote: »

If you do not research then of course you have the potential to pay for something that could be gotten cheaper elsewhere. When I was 6 years old getting pocket money I knew to buy my bars & cans in the supermarket and not the newsagent, not that crazy a concept to grasp. Shops differ in prices, and with all the recent threads people are now realising, shock horror, that stuff costs different prices in different countries too. Did people honestly not know that before?


I bought a capacitor for my tumble drier online, €8 delivered. I knew how to check that it was the capacitor which was broken, and how to read the values off it and get a generic replacement. The proper one would have cost around €60 from the manufacturer, and if I did a call out you would probably be talking over €100 for it fitted.

I have searched and got car spares for guys in work too, at a fraction what they are here. Many service places do not care about the cost of parts, they buy from convenient dealers and pass that price on to you direct, with labour.

You are confused at buying car parts online, but people into cars know what to look for. You knew how to spec your ram, most would not and would probably say to you "wow, you really know your stuff, I wouldnt know what is in my PC or what to be ordering". PC shops etc offer this as a way of service and can include it in the price, whether you use it or not. I expect most sales of ram etc take longer than your transaction would have.


Yes, strange alright, I would not even think of buying the likes of memory cards or ram in a shop here. Some might do it just so they can convince themselves they made a good saving, and to have a moan.

A guy in work came back with a load of staropramen from up north saying he saved a fortune since it is €2.80 a bottle here, thing is he had never heard of the beer before, and would usually only buy €1 beers down here.

I think that you must be me. :eek:

donmeister

Cabaal wrote: »

I'm curious why you even bothered to price the ram in a shop, anybody thats anyway computer savy will just price it on-line and fit it themselfs, if your not comfortable at fitting it yourself or buying the correct model on-line then a highstreet store is the best option for these type of people.

Silly old me,I thought to myself,its €22 online+€5 postage,so I reckoned 'oh Il just get it at the local store' and be willing to pay say €40-45,because of taxes,and its a high street shop ,etc. come into play,and it ended up being €80-100. Same(if not smaller, actually) computer shop in Galway €35.

Now that is a ripoff if I ever seen one.:mad:

Cabaal

donmeister wrote: »

Silly old me,I thought to myself,its €22 online+€5 postage,so I reckoned 'oh Il just get it at the local store' and be willing to pay say €40-45,because of taxes,and its a high street shop ,etc. come into play,and it ended up being €80-100. Same(if not smaller, actually) computer shop in Galway €35.

Now that is a ripoff if I ever seen one.:mad:

sigh, http://www.thefreedictionary.com/rip-off
Again, its not an act of exploitation as everyone has the choice of going else-where, its not theft because people willingly hand over money, not a scam or trick as the price is made very clear and its upto people to make the best choice.

Short of it all this is not a rip-off, it is instead just not the best value available for people not willing to shop around.

I guess that store in galway charging 35e was also a "rip-off" compared to other sites on-line :rolleyes:

donmeister

Cabaal wrote: »

I guess that store in galway charging 35e was also a "rip-off" compared to other sites on-line :rolleyes:

Far from it,I thought that was a reasonable price,where €80 is just plain ridiculous..........

axer

donmeister wrote: »

I recently went into a 3 computer shop's to see how much 2GB of ram was for my laptop was,its €22 online,I was quoted between €80-100 for it! Crazy! I laughed when I was told this,and walked away!

They are choosing to sell it at this price. If nobody bought it because they thought it was too expensive then they would close down or reduce the prices. You chose not to purchase the item there.

donmeister wrote: »

I ask the question,how can they manage to cheat customers like that by marking up the price by nearly 300-400%?What going on?

They are not cheating anyone. They are displaying the price they want to sell it at. If I was in a huge rush and needed the ram instantly then I would have been forced to pay that price for the convenience.

As said earlier it is only rip off if they claim it to be something it isn't or when there is a monopoly and you have no choice.

shellyboo

donmeister wrote: »

So the whole point of this argument is,if you don't do your homework before buying a product,your basically screwed. Their con-artists in my opinion. And car-parts online??

Yes, that is the whole point of the argument. Caveat Emptor? Heard of it? No? Basic tenet of consumer law? Taught in Junior Cert Business Studies?

It means 'Let the buyer beware'. It is YOUR responsibility to get the best deal for yourself. Shops are in the business of running a business, not making sure you're getting the best price for an item. And in this case, you did. Well done, you beat the system. What exactly are you moaning about?

donmeister wrote: »

Silly old me,I thought to myself,its €22 online+€5 postage,so I reckoned 'oh Il just get it at the local store' and be willing to pay say €40-45,because of taxes,and its a high street shop ,etc. come into play,and it ended up being €80-100. Same(if not smaller, actually) computer shop in Galway €35.

Now that is a ripoff if I ever seen one.:mad:

Yes, silly you. Why in the name of god do you think that shops in Galway are looking out for your best interests? If 3 are selling units of RAM at €80 - €100 to people, do you think the manager is going to come in some day and go 'ah, poor consumers, I'll knock that price down a bit because it's not fair.' Get a grip. Shops are in business to make money.

Plasmoid

Cabaal wrote: »

sigh, http://www.thefreedictionary.com/rip-off
Again, its not an act of exploitation as everyone has the choice of going else-where, its not theft because people willingly hand over money, not a scam or trick as the price is made very clear and its upto people to make the best choice.

Short of it all this is not a rip-off, it is instead just not the best value available for people not willing to shop around.

I guess that store in galway charging 35e was also a "rip-off" compared to other sites on-line :rolleyes:

So... on the premise that someone does not know enough to look elsewhere or needs something in a hurry, charging that price is not exploitation and not a rip-off ?

I'm well used to all the physical shops charging ridiculous prices for computer parts and making up nonsense excuses to justify them... but that doesn't change the fact that anyone who ends up buying from them gets ripped off.

I really hate those computer shops that stock the latest and greatest Radeon 2400 for €200 and the supreme Geforce 7600 for €350. If they dont want to lose money on depreciation then maybe they could try selling them at a reasonable price from day one... or ordering more then 1 for display as they need them.

If it was just some of them it would be bad enough... but in Ireland it sure seems like all of them are at it.

Cabaal

Plasmoid wrote: »

So... on the premise that someone does not know enough to look elsewhere or needs something in a hurry, charging that price is not exploitation and not a rip-off ?

I'm well used to all the physical shops charging ridiculous prices for computer parts and making up nonsense excuses to justify them... but that doesn't change the fact that anyone who ends up buying from them gets ripped off.

Supply and demand, its not theft or a rip-off, nobody is forcing anyone to hand over there many.

Again its a consumers job to shop around for the best price this is something the consumer agency have been advertising for a few years now,

In fairness I recently bought ink for my printer for 15e on-line...I could have spent maybe 50e in a shop in town for the same ink and if I did I've only myself to blame...

Understandably people find the higher prices frustrating but that does not make the higher prices theft or a trick or any sort as they are clearly marked at the price given and nobody tolds a gun to anyone's head.

CiaranC

Such a bunch of whiners. Shops can charge whatever the hell they want, there is a perfectly viable alternative open to us all. Who the **** goes into a 'computer shop' in this day and age anyway?

mickoneill30

CiaranC wrote: »

Such a bunch of whiners. Shops can charge whatever the hell they want, there is a perfectly viable alternative open to us all. Who the **** goes into a 'computer shop' in this day and age anyway?

Anybody who needs something urgently or who needs help. I needed toner for my CEO a few weeks ago. The online guys (I tried a few) were cheap but all had lead times of over a week. I did the rounds of the local shops. I would have paid whatever they wanted. But nobody stocks them anymore as the online guys are cheaper and people complain when the shops charge more:)
End result. We have to buy them online and have to buy more than we need because we can't get them locally anymore.

silversurfer

As mickoneill30 has said, if you need some part immediately and are willing to pay the price, then you'll get it in a computer shop.
Or if it's something that the shipping cost makes it cheaper to buy locally.

The only other reason I'd go into a computer shop, which I do every now and again, it to check and see what they have available.
They are great places to see the merchandise displayed.
You never know what you may see and then decide to buy on-line.
Recently I looked at the 8" screen laptops in one of the computer stores to get an idea what they were really like. I don't intend to buy one at the moment, but now I know what they are really like.

Retail stores will always try to charge about 30% (IMO) extra for proffit and then have to pay for rent of premises and wages to the staff on top of this as well as heating, electricity....



rgds,
s

rubadub

Plasmoid wrote: »

So... on the premise that someone does not know enough to look elsewhere or needs something in a hurry, charging that price is not exploitation and not a rip-off ?

Correct!