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How can they justify this ? — Parallax Forums

How can they justify this ?

QuattroRS4QuattroRS4 Posts: 916
edited 2008-05-14 16:16 in Propeller 1
www.newark.com/jsp/search/browse.jsp;jsessionid=HWGNG4KNE4PC2CXDUZ0G2WQ?N=0&Ntk=gensearch_001&Ntt=p8x32a&Ntx=&_requestid=68204

crazy pricing .. what is that about ..

looks like they cross ship from the UK !

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'Necessity is the mother of invention'

Comments

  • PhilldapillPhilldapill Posts: 1,283
    edited 2008-05-08 20:42
    Easy - they must be making money on it... Now the question is, why is anyone buying at these prices???

    Note the $15 handling fee on top of the 200% price.
  • Mike_GTNMike_GTN Posts: 106
    edited 2008-05-08 20:44
    Hi QuattroRS4,

    Yep that is a very high price. Also odd is that they use a Picture of a PIC Microchip for the DIP40. I've never heard of Microchip before will have to Google (other search engines also exist) presume might be some other kind of processor device wink.gif

    Hey maybe the Prop (First Generation) is being scaled down ready for the launch of PropII -- This might only be days away with this inflated price (Other prices do also exist still)

    As to your original question, presume the only answer is that they can charge this, and still hope to capture a few sales?

    Regards

    Mike.
  • jazzedjazzed Posts: 11,803
    edited 2008-05-08 21:33
    Some merchandiser's rule of thumb for OEM is ASP = 4 * COGS for low volume. Doubt they will sell many at this price, and that will of course reinforce their decision to keep the price high [noparse]:)[/noparse] Maybe they think they're doing someone a favor by listing the Propeller. Maybe they sell in markets that do not have access to Parallax "direct" ?

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    jazzed·... about·living in·http://en.wikipedia.org/wiki/Silicon_Valley

    Traffic is slow at times, but Parallax orders·always get here fast 8)
  • Phil Pilgrim (PhiPi)Phil Pilgrim (PhiPi) Posts: 23,514
    edited 2008-05-08 22:43
    Is there any wonder that DigiKey and Mouser have achieved such ascendency in the past decade at the expense of companies like Newark, Allied, Avnet, and Arrow? What these latter, so-called "mainline" distributors perpetually neglect to consider is that small OEMs can, and sometimes do, become big OEMs who remember how they were slighted when small. As a result, the mainline distributors are becoming more and more marginalized, as DigiKey and Mouser expand beyond a combined 4500 catalog pages — all without sacrificing customer service.

    -Phil
  • hippyhippy Posts: 1,981
    edited 2008-05-08 23:08
    Philldapill said...
    Note the $15 handling fee on top of the 200% price.

    But, as they are coming from Farnell UK it's a good deal because it's straight GBP to
    USD conversion with $15 shipping on top. That 200% is what Farnell add on and
    charge UK customers.

    There was a long discussion on the price of Propellers and shipping costs to the UK
    and Europe which I don't think is worth re-opening.
  • toru173toru173 Posts: 17
    edited 2008-05-09 00:44
    You think you've got it bad? Farnell Australia:

    au.farnell.com/jsp/search/browse.jsp;jsessionid=U2WEGCM1LS1QGCWNBBSLYFQ?N=0&Ntk=gensearch_001&Ntt=p8x32a&Ntx=&_requestid=9542
  • Luis DigitalLuis Digital Posts: 371
    edited 2008-05-09 01:17
    WOW! I live in the Dominican Republic in a distant town and I have all cheaper:
    Propeller $18
    Propeller Proto Board $26

    Free shiping in the town and $3 shiping all Dom. Rep. (Delay: one day)

    It can be that a computer put the prices automatically, because nobody is selling so expensive.
  • Cluso99Cluso99 Posts: 18,069
    edited 2008-05-09 01:33
    Hey,

    I'm in Australia. I bought my Propeller Proto Boards direct from Parallax. Took under a week to arrive (this week - hey hey). Thanks Parallax - and any profit goes back into the company bringing us the Propeller II cool.gif

    Postage was expensive at US$32.50, but I bought 2 boards.

    So I think if I did the maths and conversion, it would be about the same price to buy 1 chip direct from Parallax and the same time for shipping, so go direct!!

    Anyway, I'm off to get the bits to use my FT2232C DIP Board as the prop Plug. Looking forward to getting it running over the weekendcool.gifcool.gif
  • toru173toru173 Posts: 17
    edited 2008-05-09 10:29
    Really? When I checked the parallax store, the only shipping I could get was $110 fedex (or similar). No thanks!
  • hippyhippy Posts: 1,981
    edited 2008-05-09 10:43
    @ toru173 : 325% of US cost - Ouch!

    Cheaper USPS shipping is offered by Parallax and the problems selecting that on the web site
    were going to get fixed.

    Previous discussion on that and referred to earlier ...

    http://forums.parallax.com/showthread.php?p=719010
  • Cluso99Cluso99 Posts: 18,069
    edited 2008-05-09 10:52
    Shipping $32.50 to Australia, less than a week. I just selected that option. Arrived last Tuesday. Great service from Parallaxcool.gif
  • Graham StablerGraham Stabler Posts: 2,510
    edited 2008-05-09 12:10
    I would probably just get a last minute plane ticket at those prices [noparse]:)[/noparse]
  • BaggersBaggers Posts: 3,019
    edited 2008-05-09 12:24
    Everyone has missed the fact it's so expensive is because it says it has 64KB of RAM [noparse]:)[/noparse] so they must be special props [noparse];)[/noparse]

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    http://www.propgfx.co.uk/forum/·home of the PropGFX Lite

    ·
  • ClemensClemens Posts: 236
    edited 2008-05-09 14:14
    I think this link might be interesting for·the UK·also:
    http://www.zekotec.ch/parallaxshop/530637977b0b3e602/02b8e698de09796fc.php
    I have never bought anything there since I·support our local (non-anglo) Saxon store in Leipzig:
    http://elmicro.com/de/uoled.html
    I guess we're pretty lucky in Germany - maybe that is the secret, why there's so many Germans on the forum.smilewinkgrin.gif
  • hippyhippy Posts: 1,981
    edited 2008-05-09 14:21
    The Euro price there is more than the GBP price from Milford in the UK, but I don't know how
    shipping compares.
  • RickBRickB Posts: 395
    edited 2008-05-09 14:45
    I just shipped a 1 lb box from the US to Australia to $10.10 via first class air. There is no stated delivery time, no insurance, and no delivery notification. This service is available for up to 4 lbs. I will let you know how it turns out.

    Rick
  • Paul Bouchard (Parallax)Paul Bouchard (Parallax) Posts: 56
    edited 2008-05-09 18:06
    Hello All,

    I've been reading through this thread and would like to point out that·the·company listed·is not an authorized distributor of Parallax product. We have attempted to contact them several times over the years to offer solutions to these issues (high prices, incorrect images etc..) however we have been unsuccessful receiving·communication from their representatives.

    My guess is they are offering·our products at such high prices for several reasons. They do do not recieve distributor pricing and therefore should someone order·Parallax products from them they·would simply purchase from us at cost. By charging the higher price it·might make·it worth the effort.

    I wanted to clarify this issue to let you·know·Parallax works closely with it's distributors.·We·provide suggestions to our distirbutors to insure competitive pricing·in an attempt to·insure their success. Distributors·however have the·freedom to price product as they see fit based on their local market, economy and business need.

    We encourage our customers to purchase from Authorized Parallax Distributors when possible and advantageous to your needs. If you have any feedabck regarding any of our distributors please contact our sales or marketing teams. We appreciate any feedback for improvement or when·you have enjoyed a positive experience that we can build on.

    Best·Ragards
    Paul Bouchard
    Parallax Marketing
  • toru173toru173 Posts: 17
    edited 2008-05-10 02:33
    I wasn't criticizing Parallax - I know you guys make some spectacular and well-priced products. It's just unfortunate that there are people in this world who like to make such a huge profit from other people's ignorance and misinformation.

    @Cluso99: What did you select to get those shipping prices? I just looked again, and the only quotes I can get (on the "Shipping" page") are the UPS rates, $111.23 for express and $106.77 for "saver." How did you manage to get yours shipped so cheaply?
  • jpylejpyle Posts: 41
    edited 2008-05-10 20:13
    ·I don't know about the rest of the shipping prices, but I shipped a·7.3 ounce box to New Zealand from Oklahoma USA for $7.20 US.·Took about a week with First Class Intl. mail.· (The 40 pin dip propeller is $12.95 , Proto Board is $19.95, from here.)·

    ············· JP
  • Cluso99Cluso99 Posts: 18,069
    edited 2008-05-11 02:51
    I just selected United States Postal Service (USPS) in the Rates By dropdown box and it came up below with USPS Express Mail International (EMS) $32.50 5 days.

    That's all I did and I received it in less than a week (Gold Coast, Australia).

    Once again, thanks Parallax smile.gif)
  • clcorbinclcorbin Posts: 14
    edited 2008-05-12 04:10
    Paul,

    Is Radio Shack an authorized distributor now? I was in there looking for some switches the other day and they had several Parallax products in their parts bin. I was kind of surprised actually.

    Clint
  • FORDFORD Posts: 221
    edited 2008-05-12 04:23
    Hi To All you Aussies.

    Why dont you deal thru RTN in Melborne, The Parallax Aussie Distributor ?
    He supports the product well, and his prices are OK, and he carries stock, so delivery would be faster.

    Cheers,
    Chris, WA.
  • JavalinJavalin Posts: 892
    edited 2008-05-12 10:31
    >I think this link might be interesting for the UK also:
    >http://www.zekotec.ch/parallaxshop/530637977b0b3e602/02b8e698de09796fc.php

    I've bought from them (Swedish i think) - they were fine. Sent the wrong type of chips, but apart from that. Postage and import less than from the USA.

    UK'ers can also get from http://uk.farnell.com/ (£14), www.milinst.com (£9) and rswww.com (£12.70). Varying amounts of postage, and farnell have a minimum £20 order for non-account holders.....

    Its better than it used to be.......

    James
  • Paul Bouchard (Parallax)Paul Bouchard (Parallax) Posts: 56
    edited 2008-05-12 16:32
    clcorbin said...
    Paul,

    Is Radio Shack an authorized distributor now? I was in there looking for some switches the other day and they had several Parallax products in their parts bin. I was kind of surprised actually.

    Clint
    Clint,

    Yes, Radio Shack is a distributor of select Parallax product. At this time they are carrying a large variety of our sensor line as well as our What's a Microcontroller kit. We of course would like them to·make as many Parallax products available to our customers as possible. Hopefully with the·success of the current products we·will see·additional Parallax product·added to stores longterm.·For more info regarding our Radio Shack presence go here: http://www.parallax.com/Support/SupportHome/tabid/518/Default.aspx

    For all distributors including Fry's Electronics go here: http://www.parallax.com/Company/LocateaDistributor/tabid/69/Default.aspx

    Thanks for bringing this up. It tells me we need to do better job·of getting this info out to our customers for your added shopping convenience.

    Paul
  • clcorbinclcorbin Posts: 14
    edited 2008-05-14 16:16
    Excellent! Instant gratification is always nice.
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