- Joined
- Apr 27, 2002
- Location
- wash dc area
This may be a little of topic , but ive always wondered what kinda profit a good size reseller like newegg makes on their processors?Does anyone know?
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p4 bottom line, what do they really cost?
- Thread starter flapperhead
- Start date
- Joined
- Dec 15, 2002
- Location
- Charlotte, NC
Since they buy them wholesale, I'm guessing around $5.
- Joined
- Jun 28, 2002
- Location
- Phoenix, AZ USA
A friend at a local retailer near me said they make about $5-20 on processors, Intel and AMD. They tend to run close to online prices like $200 for a 2.4b when it could be had at Newegg for $190.
OP
- Joined
- Apr 27, 2002
- Location
- wash dc area
- Thread Starter
- #4
Man that aint much.. Is it the same with retail and oem?
- Joined
- Jan 11, 2002
- Location
- tOLEDO, OHIO, the heart of it all!
i would bet its more that $5.00 per chip, when they give nice price breaks on 1000 chips. they have the buying power, and selling power to do this. there is a nice mark up on the chips, and the peeps, us, but them alot, so the profit is nice.
to answer your question, i dont really know, but it is definately something, and i would suspect more that $5.00 per chip.
to answer your question, i dont really know, but it is definately something, and i would suspect more that $5.00 per chip.
OP
- Joined
- Apr 27, 2002
- Location
- wash dc area
- Thread Starter
- #7
I would think they make at least 25-50 bucks, depending upon the speed etc.. cause unless your selling thousands a month it aint worth your while at 5-10 bucks a pop... my brother is a distiributor-reseller for industrial chemicals and equipment .with all the overhead etc. he wont touch a transaction unless its at least a 35-40 percent profit.. alot of his sales are at double what he pays...
OP
- Joined
- Apr 27, 2002
- Location
- wash dc area
- Thread Starter
- #9
Im half tempted to get my brother to apply for an intel dist-reseller from one of the big intel resellers just to see what the cpus really cost
- Joined
- Mar 29, 2003
Its not $/chip itd percentage above cost. A business has to make a certain percentage to remain open. They HAVE to cover their overhead wich includes payroll etc. I would guess they have to make 20% just to stay open. a $100.00 chip would cost them $80.00. Retail stores mark up 100% to 400% depending on the item. A friend at the local mall marks up as a minimum 120%. So they can stay in business.
Most computer retailers, Newegg and CompUSA inclusive, usually sell products like cpus, hard drives, and printers on very low margins (i.e. little profit). But they're assuming that consumers will waste their money on products like periperals, cables, blank discs, etc. These are very high margin products (e.g. a $24 printer cable at CompUSA costs them about $2) and that's where they make most of their money.
- Joined
- Aug 18, 2002
- Location
- New Jersey
To actually make the chip, it probably costs $10. Then intel jacks the price up because of its advertising, etc so now its $25. Since the chip just came out, lets put it up to $40. My guess is theyre not more than $40 when they leave intel and less than $10 to actually make them.
metra said:
It costs more than that. You have to factor in the capital cost of a $3 billion fab and the army of engineers needed to develop the chip. CPUs can cost anywhere from $20 to $500+ to make, depending on the amount made, the "newness" of the chip, and the amount of testing and validation.
OP
- Joined
- Apr 27, 2002
- Location
- wash dc area
- Thread Starter
- #14
So what are we saying? a $150 cpu cost newegg 75? or 95 or 105 or 135?
