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NewEgg's price gouging on super-recent added-to-cart items.

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g0dM@n

Inactive Moderator
Joined
Sep 27, 2003
Check out this email I sent to [email protected]:

To Whom It May Concern:
Hello. My name is Richard Simmons, account [email protected], customer #5555555. This is now the 3rd time that I have had this issue where I add something to my cart, and by the time I check out the cart the price goes up. In my opinion, this is rather ridiculous. I take my time reading up on the product, and have it ready in my cart. By the time I check it out after adding it to cart (usually spend 2-3 min to read up on it), the price goes up.

Since this is the 3rd time this happened, I am shopping elsewhere for my purchase of 2x512 PC3200 memory, where I now may find it cheaper than the “new price”. I have not been happy with newegg’s price gouging and sporadic so-called “supply and demand” automated changes that have been going on for the past few months. I completely understand the system, but not when it’s already in my cart, ready to be checked out and purchased. You can see by my account that I’ve spent several thousands dollars to maybe well over $15,000 through your company. I don’t mind a few dollars, but this is truly annoying. You should have a grace period between adding to cart and checkout for changing the price on a product. I know you will respond with a response like “it is automated”… well, then my suggestion would be to upgrade the system and “make it automated” to have a grace period between adding to cart and checkout for a customer to keep that added to cart price if it was initially cheaper.

The price on this product went up approximate $4.00 within 1-2 min of it being in my cart. When I was ready to checkout, the price went from $68.XX to $72.XX. It should be “automated” that my cart have about a 5 minute grace period before your update of prices changes it to a higher value. Again, this is a suggestion from a customer that has spent an enormous amount of money with your company. 85%+ of my shopping on computers/electronics has been through your company.

Here is the product I speak about:
http://www.newegg.com/Product/Product.asp?Item=N82E16820223030

This is NOT a matter of a few dollars; rather, it is my concern of how you have the opportunity to keep customers with you. Instead, you push them away for the extra few dollars that you squeezed out with your “supply and demand, automated system”.

Suggestion in a nutshell: Make an automated freeze on pricing for a short period of time on a customer’s cart if that product’s price should go up. Of course, a price drop, and out of stock updates should be on-the-fly.

Best regards,
Mike Tyson
 
I have had the exact opposite issue with NewEgg. I had purchased a Zalman fan for a new build that was on 'weekend special', and not a cheap one, but one that listed for approx $70 but was on sale for about $50. Unbeknownst, to me, due to my recent move and change of address, my order was kicked out and voided, after the start of the next business week. I went online and straightned out the billing snafu and then attempted to order at the retail price. The system again refused my order, however, when I went in to check status, the original order had beeen rejuvenated and approved at the weekend sale price! through no effort on my part. Being this was mid week already I think they deserve kudos for the handling of this particular order.
Unfortunate on your case but I think since you've complained they will take action and resolve the issue. I'm sure you're not the only one it's happened to and NewEgg has always impressed me with the their Customer Service and attention to detail, something lacking in many Internet based companies. Let us know of any response once received. I'll be curious to judge their response.
 
I don't like to stick up for newegg or the likes, but it's NOT price gouging... not to be rude, but I think all this recent hurricane talk has gone to your head. This is simply supply and demand, the demand for the product goes up, they are harder to get and more expensive for newegg, thus there prices reflect this.

Price gouging is the practice of those supplying 'essential' goods and raising the prices during a civil emergency.

1. It's not essential that you buy the computer products.
2. It's not an emergency.

Yeah I'd be ****ed too, but it's simply the big guys being, 'the big guys' hate them for that, not price gouging.

- Dan

EDIT: I can't say ****? Well **** me!
 
Never had that happen, but I do think they charge to much for shipping some items. Example, I order parts to build an entire system for my brother-in-law and it cost 17 dollars to ship it. Yet, if I order AS5, a new mobo and CPU it costs me about 17 dollars.
 
Graphicism said:
I don't like to stick up for newegg or the likes, but it's NOT price gouging... not to be rude, but I think all this recent hurricane talk has gone to your head. This is simply supply and demand, the demand for the product goes up, they are harder to get and more expensive for newegg, thus there prices reflect this.

Price gouging is the practice of those supplying 'essential' goods and raising the prices during a civil emergency.

1. It's not essential that you buy the computer products.
2. It's not an emergency.

Yeah I'd be ****ed too, but it's simply the big guys being, 'the big guys' hate them for that, not price gouging.

- Dan

EDIT: I can't say ****? Well **** me!
bro your wrong
first off your deffinition of price gouging is not correct, see crimdog's post
second, its complete BS that the price goes up AFTER you've added it to your cart. its one thing to have it go up when your looking at it, but its a whole nother thing to rise the price after you've added it to your cart. i'd almost call it false advertising. for all we know, once we add a item to our cart, their "automated system" jacks the price up after a few minutes :mad:
 
HOLY CRAP! This is EXACTLY what happend to me! lemme tell you the story! one morning i wake up, go to newegg to find the opteron 146 in stock for WHAT!! $170+ship!?! yeah, you can bet i jumped on that! i was gunna buy more then 1, but it was limit 1 per customer. I get through everything and its all good. I get a confirm email saying i just paid $272 for the cpu.. i was like what the f'in hell? i look at my credit card statment, and sure enough they charged me 272.00 or something like that. Isnt this way against the law? I then sent an email to Newegg..


Okay, so this morning at 6:21 my time (5:21 your time)
i place and order for a Opteron 939 146 CPU that
showed as around $173.99 Shipped on your website.
(Order ***********)
http://www.newegg.com/Product/Product.asp?Item=N82E16819103598
I was so excited because they finally came back in
stock with a super price. I ordered everything and
waited. Then i get this email saying my card was
charge $272.99?!? WHAT?!?! I did NOT authorize this
charge at ALL! I bought the cpu for 170+ship, Not $100
More! Now i have nothing to back me up. My order
information on the site says 272.99, i check my Credit
Card and sure enough, you charged $272.99. First of
all, it is showing its sold out now. How would my
order go through if its sold out? 2nd of all, why
would I order this Opteron 146 for 272.99 when i could
get the 148 for $235? Im pretty mad right now and not
satisfied at all. On the other hand, I have never had
this kind of trouble with newegg before and you have
always treated me right. You need to fix the price to
what It said when i bought it. Maybe you can look at
the system Logs or something and see that it DID
infact say it was $170 (Please look in the system or
ask whoever changed it) I couldnt be the only one this
has happend to. I am sure there are others that
ordered the same CPU i did for the same price. Its not
that I dont want the CPU, because I do. But certainly
NOT for $272.99! Im at a loss for words right now, and
I dont know what to do. Im just frustrated and I
would appricate a response back soon.

-happy gilmore

yeah, newegg is the best that the internet has to offer, and some really good folks have helped me get it RMAed (yeah, they shipped out before i could cancel it) but geeze.. im not gunna lie, im very mad at newegg right now. I would love it if they honored THE PRICE I BOUGHT IT AT. thats not gunna happen, after i talked to 5 different people both on the phone and through email. The whole situation is bunk and puts a bad taste in my mouth. I know it sounds unbeliveable but its true. Newegg has some shaping up to do, even though they are the best. Im just glad it was newegg that had this mistake as other companys would have charged me a restocking fee for THEIR mistake *umm... monarch....*
 
EvilCloudStrife said:
HOLY CRAP! This is EXACTLY what happend to me! lemme tell you the story! one morning i wake up, go to newegg to find the opteron 146 in stock for WHAT!! $170+ship!?! yeah, you can bet i jumped on that! i was gunna buy more then 1, but it was limit 1 per customer. I get through everything and its all good. I get a confirm email saying i just paid $272 for the cpu.. i was like what the f'in hell? i look at my credit card statment, and sure enough they charged me 272.00 or something like that. Isnt this way against the law? I then sent an email to Newegg..



yeah, newegg is the best that the internet has to offer, and some really good folks have helped me get it RMAed (yeah, they shipped out before i could cancel it) but geeze.. im not gunna lie, im very mad at newegg right now. I would love it if they honored THE PRICE I BOUGHT IT AT. thats not gunna happen, after i talked to 5 different people both on the phone and through email. The whole situation is bunk and puts a bad taste in my mouth. I know it sounds unbeliveable but its true. Newegg has some shaping up to do, even though they are the best. Im just glad it was newegg that had this mistake as other companys would have charged me a restocking fee for THEIR mistake *umm... monarch....*






wow that sux man, its just wrong
atleast they were good about the restocking fee, I would be ****ed though after all the money we spend there :-/
 
Graphicism said:
I don't like to stick up for newegg or the likes, but it's NOT price gouging... not to be rude, but I think all this recent hurricane talk has gone to your head. This is simply supply and demand, the demand for the product goes up, they are harder to get and more expensive for newegg, thus there prices reflect this.

Price gouging is the practice of those supplying 'essential' goods and raising the prices during a civil emergency.

1. It's not essential that you buy the computer products.
2. It's not an emergency.

Yeah I'd be ****ed too, but it's simply the big guys being, 'the big guys' hate them for that, not price gouging.

Think about what happened to me a bit more. I added the item to cart b/c it caught my interest. I went back to the product to check the timings, was happy that it was cas2.5, went to checkout, and then the price changed when I was ready to hit the final checkout/payment button. I didn't notice any price change until after I confirmed my address and whatnot... you know, when it asks if your address is still XXXX. After I accepted all of that stuff, I then noticed the new price.

I cannot see a single REASONABLE reason for them to do that. If you go to a store, and pick up a product because it was $69.99, and then you go to the register to finally pay for it and they tell you "oh, we just changed the price while you were walking over to us"... what would you do?

I'd slap the clerk in the face, and then I'd wake up from that daydream of slapping the clerk in the face (cuz I wouldn't really do that), and then I'd leave the item there, and walk out. That's what I just did to newegg... I'm purchasing my 2x512 kit of ram from elsewhere to prove my point and maintain my pride. :)

Woot! ZZF 2x512 Mushkin value for $69 shipped after $10 MIR? Hell yeah... much better deal, and they won't change the price on me while I'm walking to the register.

They need to update this excuse of "it's automated"... haven't you people heard of system management (or whatever they call it) "updates"? That's right... any automated service CAN be updated.
 
You should use commas and periods... hard to make sense outa what you're saying. :)

By the way, Richard Simmons says hi.
 
d94 said:
bro your wrong
first off your deffinition of price gouging is not correct, see crimdog's post

I'm not familiar with that site, check it out on wikipedia. And think about what you are saying... if it really is price gouging, and it's illegal, they would be breaking the law.

g0dM@n -

Yes I completely understand how you feel being wrong-done right at the checkout like that, but it's simply because they happened to update it that very second. The only way around this would be to put the site offline while they up the new prices, and with this happening atleast every day if not every hour, that wouldn't be good for business. - Further more if that has happened to you and others more than one, this would tell me they update the prices constantly.
 
Graphicism said:
I'm not familiar with that site, check it out on wikipedia. And think about what you are saying... if it really is price gouging, and it's illegal, they would be breaking the law.

g0dM@n -

Yes I completely understand how you feel being wrong-done right at the checkout like that, but it's simply because they happened to update it that very second. The only way around this would be to put the site offline while they up the new prices, and with this happening atleast every day if not every hour, that wouldn't be good for business. - Further more if that has happened to you and others more than one, this would tell me they update the prices constantly.

okay. it may not be "breaking the law" the whole definition of price gouging is open to interpretation (esp. when dealing with non-necessities).. what we are saying here is that it is WRONG. and SHADY. you dont agree with that?
 
Yeah it is wrong, I totally agree (In my first post I said 'it's simply the big guys being, 'the big guys' hate them for that, not price gouging.'), but they all do it... I guess after seeing thread upon thread about price gouging since Katrina I just wanted to say something.

Yes it is wrong, yes they are shady... but we will all continue to purchase from them won't we? (*Hoping you say no and we setup some sort of boycott!*)
 
When newegg got their opteron 144's in a few nights ago, I immediately bought one at the $168 shipped price. I wake up the next morning checking on the order only to see I was charged $180. Ignorantly, I cancelled my order thinking, "Dang, they waited to charge my card until after the price went up." Now they are $195. Live and learn.
 
Tigerdirect has the 144 for $169.99. I never mentioned it b4.

Here is the email that I received back from NewEgg. I wish it wasn't such a "basic" and "boring" response. The response I received could be used in almost any situation. Check it out:

Dear Richard Simmons and Mike Tyson,


Thank you for taking the time to contact us regarding this issue, and supplying your welcomed feedback. We apologize for these previous inconveniences, and highly share your concerns.

We, here at Newegg, strive to uphold the highest standards of excellence in each and every aspect of our company. Rest assured, your feedback will be taken with the highest concern, and the appropriate parties will be further notified of these suggestions. Our customer's feedback is our highest priority, and these suggestions help us create a more comfortable shopping environment for our highly valued customers, such as yourself.

Once again, we here at Newegg do apologize for these highly uncommon circumstances, and we hope that these unfortunate situations do not degrade any previous perceptions of us here at Newegg. We do hope you continue to be a loyal Newegg customer, and thank you once again for the constructive suggestions. We look forward to supplying you with the excelled service that you have become accustomed to in the near future.
________________________
Thank you and best regards,


Mark Gleason
Customer Service Representative
------------------------------------------
9997 E. Rose Hills Road
Whittier, CA 90601
T (800) 390-1119 x 2095
F (909) 395-8907


www.Newegg.com
ONCE YOU KNOW, YOU NEWEGG.
 
That's not a responce to your question, that's a copy and paste job they send to all customers they don't want to deal with. Think of it more as a kick in the nuts, or the waiter spitting in your food at a restaurant.
 
Mike Tyson is going to be very mad, not to mention that Richard Simmons is now going nude on his next video!
 
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