Waco Posted November 9, 2011 Posted November 9, 2011 Because some people look at the value of a product by the amount of money it takes to make it+ some profit for the maker. Some people don't live in reality then. 1 Share this post Link to post Share on other sites More sharing options...
Black64 Posted November 9, 2011 Posted November 9, 2011 Some people don't live in reality then. The only people that don't are the ones selling it. Share this post Link to post Share on other sites More sharing options...
ivangela Posted November 9, 2011 Posted November 9, 2011 Because some people look at the value of a product by the amount of money it takes to make it+ some profit for the maker. The cost of manufacturing the HDD has not gone up but the price to buy one has, so where is the extra cost coming from? Well you tell me. So in effect you are being ripped off. In effect, the price HAS gone up to manufacture the HDD because the factories need repaired ($) the time it takes ($) the labor ($) the loss of revenue in the meantime ($)..all = increased cost. Add to this the natural capitalism of supply and demand and prices go up again. This is all basic economics. No one is getting ripped off. There are fewer of somehting so the remaining is worth more. If you and I were stuck in the desert and a Bedoin came by with a bottle of water for $5 and you said "That only costs $1, you're ripping me off", I'd buy it and you'd die Crap analogy but you get the point Share this post Link to post Share on other sites More sharing options...
Black64 Posted November 9, 2011 Posted November 9, 2011 (edited) In effect, the price HAS gone up to manufacture the HDD because the factories need repaired ($) the time it takes ($) the labor ($) the loss of revenue in the meantime ($)..all = increased cost. Add to this the natural capitalism of supply and demand and prices go up again. This is all basic economics. No one is getting ripped off. There are fewer of somehting so the remaining is worth more. If you and I were stuck in the desert and a Bedoin came by with a bottle of water for $5 and you said "That only costs $1, you're ripping me off", I'd buy it and you'd die Crap analogy but you get the point 1. Only WD was affected so the cost to make a Samsung or another brand HDD drive has not changed, So why have prices gone up? 2.We don't need HDDs to live. Edited November 9, 2011 by Black6464 Share this post Link to post Share on other sites More sharing options...
Waco Posted November 9, 2011 Posted November 9, 2011 The only people that don't are the ones selling it. Incorrect. Supply is down, demand is the same. Prices go up. That's how it works. To imply that it's anything different is nonsense. Share this post Link to post Share on other sites More sharing options...
ivangela Posted November 9, 2011 Posted November 9, 2011 1. Only WD was affected so the cost to make a Samsung or another brand HDD drive has not changed, So why have prices gone up? 2.We don't need HDDs to live. 1. I am not sure that is totally correct. I think lots of manufacturers get parts and/or assemble in Taiwan 2. Like I said, not the best analogy but the supply/demand thing is the POINT...value increases with diminished supply. Incorrect. Supply is down, demand is the same. Prices go up. That's how it works. To imply that it's anything different is nonsense. stated yet again and repeat Share this post Link to post Share on other sites More sharing options...
Silverfox Posted November 9, 2011 Posted November 9, 2011 There is a demand for $200 1TB hard drives? Call me crazy, but I get the impression that there is a serious decline in demand for hard drives as of late, that's the vibe I get from most people when discussing this situation. That's how I understand supply and demand anyway, you have a high demand and low supply, you can raise prices, but here we have both a decrease in supply and decrease in demand. Yeah so they ripping us off... But also at the same time being stupid, because if you sell at lower prices your going to sell more. I'm holding out until prices drop again, cause it's just not worth it at this time. Because some people look at the value of a product by the amount of money it takes to make it+ some profit for the maker. The cost of manufacturing the HDD has not gone up but the price to buy one has, so where is the extra cost coming from? Well you tell me. So in effect you are being ripped off. Oh dear. Has anyone heard of "scarce resources"? I understand you are all a bit "hacked off" that prices have gone the opposite direction to what you are used to, but tough titties. Hard disks just became a scarce resource - and that means ... price increases! I don't get why people are whining about this so much? Nobody seems to care about anything other than prices going up. Nice, that Oh and the cost of manufacturing has rocketed - because the manufacturing facilities need to be repaired and put back to normal. By not operating at full capacity, it costs more. Overheads that are fixed, still need to be paid, as do rents and rates. Selling at lower prices to sell more? Learn about something called "economies of scale" and "margin" ... then please come back and discuss more. Hard drive demand alone may have decreased (evidence unsupported), but who's to say pre-build systems and laptop demand has decreased? I see no evidence at all to suggest otherwise. Present me empirical data, please. Honestly people - have an opinion - I'm all for it; but don't go into an argument blind without knowledge. It's going to make you look daft. If people here cannot grasp why prices have risen, for economic reasons alone, I don't see what the point in trying to discuss it is. Perhaps it's cut and dry for me, because I've studied it. But then again, plenty of other people who I know for a fact who have not studied economics and finance, are grasping it perfectly well. Share this post Link to post Share on other sites More sharing options...
Deathmineral Posted November 10, 2011 Posted November 10, 2011 Oh dear. Has anyone heard of "scarce resources"? I understand you are all a bit "hacked off" that prices have gone the opposite direction to what you are used to, but tough titties. Hard disks just became a scarce resource - and that means ... price increases! Hard drive demand alone may have decreased (evidence unsupported), but who's to say pre-build systems and laptop demand has decreased? I see no evidence at all to suggest otherwise. Present me empirical data, please. Has anyone here heard of recycling? Hard drive manufacturers are not the only ones selling hard drives, they can have all the scarce resources they want, but as long as there are people selling their used hard drives for cheaper, there isn't a lot of reason to go with a brand new drive. Honestly, the only advantage a brand new drive presents is a warranty, which is pretty useless in the field of hard drives because you lose that data whether the physical part has a warranty or not. I don't think anyone is "hacked off" Pretty sure most people have a fine understanding that they aren't being forced to buy hard drives at these kind of prices, and so they choose not to, as is their right. You talk about evidence unsupported but really, where is your evidence that demand isn't going down? I don't have a fancy spreadsheet or anything like that, but anyone that's been watching this thread or discussing this topic with other people would know there is definitely a decrease in demand right now. Just as some examples and a little bit of support I've gathered a few posts from this thread. well I am in no hurry to buy hard drives so I'll just wait for them to come back to reality....Just because WD is flooded doesnt mean other manufactures are going to raise prices....if they were all smart they'd lower prices and put the pinch on WD....dirty business but I'd do it Solution: don't buy from WD. If they want to raise prices during a North American recession let them, just means people that were thinking about buying now will wait until they drop their prices back down or buy another brand. From what I can tell, majority of people will probably wait this storm out as long as they can. I know that the demand is still there, I'm not saying it's disappeared, I believe it's still high enough to where price increase is acceptable, but to triple the prices on hard drives is simply going to alienate a lot of people from the hard drive market. Also, you said it yourself in an earlier post, the hard drive manufacturers can't pass this stuff onto the big distributors either, they have set prices. Honestly though, I just want to say this now, it's thanks to the understanding customers like yourself, that the rest of us can ride this storm out and that the hard drive companies can stay in business. If everyone simply stopped buying hard drives during this time like I have, well it probably wouldn't be a pretty situation for anyone in the end. So, thank you, for keeping the situation alive. (we need like a saluting smiley or something, that's what I would have put there but there isn't anything like that so you can have that one instead) Share this post Link to post Share on other sites More sharing options...
Waco Posted November 10, 2011 Posted November 10, 2011 From what I can tell, majority of people will probably wait this storm out as long as they can. I know that the demand is still there, I'm not saying it's disappeared, I believe it's still high enough to where price increase is acceptable, but to triple the prices on hard drives is simply going to alienate a lot of people from the hard drive market. HDD demand isn't anywhere near as elastic as you think. People who need to buy a computer still have to buy a HDD. OEMs still need to buy them. Businesses still need to buy them. The extra crap that gamers buy occasionally isn't their bread and butter and it won't kill them if people pull back on purchasing a bit. Share this post Link to post Share on other sites More sharing options...
Munkypoo7 Posted November 10, 2011 Posted November 10, 2011 Incorrect. Supply is down, demand is the same. Prices go up. That's how it works. To imply that it's anything different is nonsense. HDD demand isn't anywhere near as elastic as you think. People who need to buy a computer still have to buy a HDD. OEMs still need to buy them. Businesses still need to buy them. The extra crap that gamers buy occasionally isn't their bread and butter and it won't kill them if people pull back on purchasing a bit. Why must you make so much sense? But yeah, agreed on all points. Carry on. Share this post Link to post Share on other sites More sharing options...
Waco Posted November 10, 2011 Posted November 10, 2011 (edited) Why must you make so much sense? Generally it's because I'm somewhat of a dick. EDIT: Confirming that: http://www.overclockersclub.com/news/29920/ Ha! Told ya. Edited November 10, 2011 by Waco Share this post Link to post Share on other sites More sharing options...
Deathmineral Posted November 10, 2011 Posted November 10, 2011 HDD demand isn't anywhere near as elastic as you think. People who need to buy a computer still have to buy a HDD. OEMs still need to buy them. Businesses still need to buy them. The extra crap that gamers buy occasionally isn't their bread and butter and it won't kill them if people pull back on purchasing a bit. Can you give some examples? I work with people and businesses that need computers, and they don't mind the hard drives being used. Companies like Dell or HP probably aren't paying the same prices as what we're seeing on newegg, so I'm not really sure what businesses you're referring to, my experience tells me that small business doesn't "need" brand new hard drives, they're happy to use old hard drives. Your link doesn't really provide a lot of evidence that demand isn't decreasing, all it says is that they estimate there is a shortage coming up, and they make this estimate based upon another estimate. It's just a bunch of guessing at what could happen in the future, guessing isn't much of an evidence. I guess that's what this ends up being though, just a bunch of guessing, for a person to think they can predict the future, well that's just... I don't know. That's all I can think to say anymore, I don't know. That's just how it is, I am not a clever man. Share this post Link to post Share on other sites More sharing options...
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