Storage HDD Prices

I agree, it just shows how doubling the price of an item, doesn’t always make you more money.

 

Some interesting points in this thread. I can kind of see both sides of the arguement.
Rob the bank and Yeoo obviously have more of an inside to the very fickle and often cut throat environment that is component distribution (been there too). But as a consumer, Another Level has every right to complain about the massive price increases which eventually hit the end user.

 

Yeah just take it apart and use the shiny platters as coasters. Although now hard drives are worth their weight in gold I wouldn't reach for the screw driver just yet.

https://forums.ebuyer.com/showthread.php?60229-DIY-Hard-Drive-Platter-Coaster!-PIX

 

I agree but there is a valid reason why pricing has been affected. Another level refuses to take it on board. My point is that HDD market is in b2b sales not resell as a component to end users. The market that Needs drives has to secure its stock and once they integrate the drive into ther product they can make there profit... they might make £5000 profit on this product so if they pay 50 or 500 for a drive it still important to buy it. they dont have the luxury of waiting til q2 next year.

the planned route to market for hdd is this way, resellers can buy hdd from distributors and resell them individuallyb ut its such a small quantity. basically your pricing is off the back of the industry and your pricing is dictated on what the industry is doing.

 

But why does the consumer have to put up with such massive increases? For the small high street computer stores this is obviously going to eat into their margins.
Maybe this is a bad example - but what if a crop of wheat were ruined due to floods, would the public not moan about the price of a loaf of bread tripling in price?

I know what goes on in the industry and find it hard to believe that there are not a few people somewhere making a few extra bucks because of this situation. It's only business after all.

 

People might complain when food prices go up in a famine, but that's how business works. If a business doesn't adjust it's prices when stocks of something are in short supply, they quickly go out of business, or the gredy just buy everything in sight and the slow, infirm, etc get nothing.

Take your local supermarket as an example. In the summer, strawberries are easy to get, so they sell them cheap. In the winter, they are not readily available, so they become expensive. We have learned over the years that it works that way, and most people accept it and change their eating habits seasonally to allow for what is available and affordable.

Now apply that to the subject of this thread. We may not all agree on just how much impact the Thai floods has had on the price or stock levels, but I think we do agree that there is less stock, whether it is reduced by 10% or 50%. And I think most people are in agreement that large companies like Dell and HP, among many others, are buying as much as they can to be prepared for a possible famine. That means the rest of us, including local suppliers, have a lot less to share betwen us. So whether it's going to last weeks or months, there is a famine. And prices go up so that companies don't lose too much of their overall incomes (and others have elaborated on how that income is built up, so I won't repeat that).

OK, rant over

Summary: Just accept it, for a SHORT while those of us who just must have more storage will pay for the privelege. Those who can't afford the raised prices will wait, patiently or impatiently. I sometimes wish I could afford to be greedy

 

What other choice does the consumer have other than to accept it?
You said it yourself - "Prices go up so that companies don't loose too much of their overall income". HDD are manufactured by wealthy companies that really should have contingencies for disasters like this. But, the bottom line is, the consumers are having to pay for the problems caused.

There will be companies taking advantage of this situation, it would be naive to not think so.

 

Think more like Man UTD have a fire and half the stands burn down.
They now only have half the seats until the stands are re-built.
Most of those seats then have to go to season ticket holders and corporate box's.
(For HD think other business customers).
That would then leave just a tiny amount of seats for sale for match day tickets.
With 25,000 fans chasing after a couple of hundred tickets, how much would they go for?

Obviously you can substitute Man U for a team of your choice with sell out crowds if you wish ;=)

 

Ok, on a similar theme - a popular band are due to play a one off concert which is guaranteed to sell out. Demand is greater than seats in the venue. Cash rich oppportunists realise this and snatch up tickets not for the purpose of going to the concert, but to sell them at an elevated price because of this demand.

 

Yea but no one i sitting on stock. People have the choice to go to that concert... some people have to buy HDD. as long as they can still make a profit from what they are doifn with it they are happy.

A HDD is commodity for businesses that happens to be available to public also..

 

So would that be the bands fault (HD manufacturer)
Or the venues (UK Distributor)
????, Gets complicated fast doesn’t it.

 

I am not trying to oppose blame on anyone. Just stating that there will be people out there that are making more money because of this situation.

 

But who, exactly? From what I've read in this thread, from people who work at distributors, the price of hard drives have been increased by the manufacturers, and this has been passed on by distributors to retailers and consumers.

From the HDD manufacturer's point of view, they have a business to run and shareholders to please. Suddenly halting the production and supply of hard drives isn't going to do their revenue/profit figures for the year any good, so instead of continuing to sell their products for the same price, they increase it to cover some of their losses from their factories shutting down. They're not making any more money than they would have been before the disaster, in fact the opposite is probably true.

As has been said over and over again: it's simple economics, not profiteering. You may not like it and you might not think it makes sense, but that's just how the world works.

 

Manufacturers are losing money they have factorys to rebuild and selling half of what they did. Distributors are losing money selling a 10th of what we do making twice as much is still 80% down. Intergrators are losing money as they are losing thier margin due to expensive drives. Resellers who sell HDD as a product are probly the best out of the situation IF they are getting a. the stock they normally get b. the sales they noramlly gert as there making more per drive. . . Only people making money out of the situation are people who are getting the same levels or stock and sales.. there are people out there but most people are not. Most people are down on supply

 

Must admit I think you would really struggle to find anybody who will make more profit in October, November or December in the IT industry who use's or sells HD's, compared to if this hadn’t happened.

I think a lot will be making a loss or just breaking even, which is a real issue in what should be the best 3 mths of the year.

 

Of course there are people out there making money. I didn't say everyone.
Do HDD manufactureres really live that close to the financial edge? Yes, they have to sort out the flood issues, but as I said earlier - where are their contingencies?
It is an unforseen disaster that may not be covered by insurances I know. But I think that rather than making people further down the supply chain paying for their profit shortfalls, they should take some of it on the nose too.

 

Just been told by a supplier (cant disclose name unfortunately) that the HDD situation is due to be around for a good while.

 

Up to £125.04 Inc VAT now, and £149.99 on ebuyer.

So annoyed that I didnt get it back when it was cheaper

 

There are always some people that make money when everyone else is suffering. You only have to look at hedgefunds that are reported to be looking at ways of making money out the Greek financial crisis, while the rest of Europe is suffering.

 

Yes the guy who sold one drive last week for £80 instead of £60 made an extra £20.

But when it comes to business, weather it be the Manufacture, the importer, the distributor, the retail seller, or the integrator (person who uses a drive in something and then sells that item).

I honestly think none of these people will make more profit in October, November or December, compared to if this hadn’t happened.