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Wait... Who said?
Demand has been high for all these for quite some time. Once demand goes away, prices will dip.
Darn them!
And here you are working your job for free, not expecting any compensation from anyone gir your time and effort....
Why can't everyone be as giving and generous as you?
here I am working as a teacher with a phd 2 masters and a bachalor. for just over 50k a year. and I have a 2d tier mensa or 1 in 30000 people high iq.
when i worked in commerce I never charged over 10% markup and I expect less high iq jobs to pay lower.
i never work for free or at a loss i always managed to run things in the green and am quite wondering why goverment/charity run organisations are always so inefficient.
not why for profit run ones always have to become low wage, crapoy product, high price hellholes.
I mean one can have like my the knack but just see greed/urssery as evil resulting in a self sustainable but small margin.
so its not i not allow people fair pay.
but i really hate ursery or profit maximalisation.
you should only charge what you need to cover your expenses + offer your employees and yourself a fair and livable wage.
say your production, packaging and shipping cost of a 7800x3d or 9800x3d is 150 euro (i bet it is not even that)
and the time a shops enployee is busy stocking and selling me it is 10 minutes.
well than for such low skilled labour 130% of minimumwage is fair
than 5 euro covers those 10 minutes easy.
than lets say it takes 3 montgs between production and selling the item.. so lets add 3 months intest of 12% annual to the 155 euro costs. which means 3% so that becomes 160 as a fair price.
ofcourse thats just production price
there is the cost if R&D.
amd does not release seperate r&D budets for its different divisions just its total current 8.6 billion annual busget. but looking at the histirical numbers presuming 1 billion spend to develop each gen of conumer cpu is a fair estimate.
.
now another staristic points to 8 million amd cpu sold per year.
.
we could thus say 62.50 r&d cost per cpu.
..
ofcourse this boils down to 0.5 billion locked up for 4 years.. which if we at 4 years of 12% interest means we could say another 2.5 euro in interest.
bringing us to 160+65= 225 euro release price
now add a fair profit margin of 10% plus 21% vat
and we get a consumer price of 300 euro
Know nothings say lots of things and make lots of assumptions. I've always found the prices drop at X time a bit exaggerated to just pure fiction. And/or the price changes are so insignificant waiting didn't gain one anything. But people love the idea of perpetual future discounts.
For someone with such a high iq (which means nothing by the way, heck mines between 143 and 147 and I'm an idiot lol, it doesn't really measure actual intelligence very well, you should know this) and with a phd, 2 masters and a bathelors, seems you are under utilising your accadmic credentials.
You don't appear to of been in a leadership position in commerce of any kind, as 10% is razor thin margins, so must of been a high bulk business if anything, do you mean you worked at a supermarket or a discount clothing store? Though even there most margins would be notably higher.
I the case of a cpu, or, really any product, you seem to of overlooked the R&D costs, licensing, taxes, rates, transportation, packing materials, printing of documentation, boxing costs, storage costs, then you get to the distribution centres who have to get a share, for transport, storage and handling again, finally to a retail store, where once more there are more costs and everyone wants a piece of the pie to make going to the cost and effort and risk worth it.
It isn't just 5% for 10 minutes work.
Honestly, If you are a teacher, I doubt it is for anything practical, likewise I suspect your 0hd us likely in the mating rituals of bullfrigs on Wednesday afternoons and 2:17pm.
Maybe try being responsible for others in that looping chain and see if you think 5 or 10% is a fair return, especially on a luxury good!
Edit.
You added a whole bunch of stuff that just goes to show you have zero idea.
How did you get to 500 million for R&D?
Out of an 8.6 billion the majority will be it's cpu side of things, so, let's say 6 billion, the architecture is developed as a whole not on a per chip basis, that is the big upside to the chiplets design, they can simply add or subtract chips to an individual sku cutting down on loss and increasing yields, the better chips go into the high end stuff, the ones that fail go into the lower end chips, so your numbers are already off by 6x alone and you still are ignoring all of the logistics and expenses involved.
the price changes are massive
7800x3d was 330 euro from november 2023 till juli 2024. it has been below 400 even longer.
its current price of 550 euro is an insanity..
there is no reason that cpu should suddenly spike above its release price..
likewise while the 7800x3d also launched at a price of 550 euro comparable to 9800x3d.. and jumped a littlr... within 2 weeks after release it dropped below mrsp.. and just 1 month after release it was a full 100 euro below it 7 months after rekease it was 200 below.
i am a hobby beekeeper
i sell my honey.. i count my labour hours and expenses.. and factor that in what i charge would never dream of selling anything i craft at a markup
actually i have phd in theology
a master in physics and sociology
and a bachalor in theology
i teach physics and religion at a gymnasium (middle/highschool)
50k in my nation is an above median wage. (median income is 44k)
granted 50k is low for a phd. (49k is average wage for a single master) but education wages are lower than most other sectors (part of why there is a teachers shortage)
this is party caused by teacher wages being state regulated.. they are limited in how much they can pay me even though physics is a class many schools have a shortage in.
many teachers go work in " education material production" or "advise agencies" as those sectors are not regulated but i am idealistic a nation needs teachers more than all those useless agencies.
i was an assistent manager in name only in a retail shop in my many student years.
-i had no final say in what was ordered as stock or who was hired.. but my feedback was heared and often followed.
(basicly i hired or fired nobody but i was the one who wrote all employees performance reports)
I very often went along with the maneger to go to our suppliers to buy stock.
I knew of every product purchase price salesprice flowtrough time and writeoff%
and yes general the margin was 30%.. for top brand items that cost hundreds but always would sell it could be as low as 18% margin.
or higher writeoff high flowtrough items (we purchased at pennies to the dollar bulk amounts of goos that were very near their best before date. than flipped them at insane prices to customers.
think a whole boy with 50 candybars for 5 euro.
while in supermarket you pay 3 euro for 5 candybars.
we often only spend 50-80 cent per box solid 700-1000% markup.
the catch was : best before date less than a month any stock not sold by than was a writeoff.
still i also saw that the owner pocketed nearly 100k a month on a 500k-600k gross profit. AFTER the staff was paid
i always found that kind of profits perverse..
the ursery priciplrle long followed in europe (10% = ursery = simfull never charge 10% or more always stay at 9.99% or below.. i find a more fair rule.
i also have run a few charities.. and turmed them nonprofit.
sometimes the city pulls away subsidy than many people obly go complain to local press write pamflets but such whining never works.
I instead have no problem with looking to what the organisation is doing.. say offering meals to elderly and poor .. or offering frech vegatables to kitchens for homeless..
**i than instead of wining to hope to change city councils mind use presstime to recruit sponsors..
replace state fundinh for private funding.
+ i akso added a highly profitable part to the orgabisation say selling some vegetables to hipsters wanting 100% organic local.. or some meals to just to lazy to cook.
-was always able to close the books at pretty much 0 which i see as the goal for anything.
but I HATE on those fale charities with ceos earninf millions or who PAY students or calcenters to recruit sponsors.
i believe that if you ask volenteers on the lower levels ALL levels must be voleer.
and if you pay wages to one lvl ALL must be paid (and nobody should be paid absurd amounts)
generally once i mamaged the books and got such a charity running in the green i step down and go do something else.. for me the fun is in preventing it from disapearing or remaining an inefficient subsidy black hole.
I also believe you must seek to work in what has your passion not what pays most (i havent either)
thus I expect this lvl of dedication and lack of greed of everybody...
in my mindset if you have to much profit. you should reduce it by increasing quality of product lowering price of product or increasing wages of enployees.
(and if running in the red logically the reverse)
ome should always strift to remain as close to that 0 balance taking just enough to keep afloat but not so much your leeching of your customers and enployees
(At CES, AMD said that they didn't expect how much demand there'd be for the 9800x3D, due to the competing Intel chips being lousy. So supply is well below demand. And chip manufacturing doesn't turn on a dime, there's quite a bit of lag between asking the chip makers to turn up the production, and when it actually happens.)
i not oppose capitalism
just excesses of it.
greed is evil.
but effort, talent and skill aka merit must be rewarded.
in the ussr they did the INSANITY of removing respources away from compagnies who met their quota and towards those who did not. thus rewarding imefficiency.
instead you should have send the supervisor of the inefficent one to siberia and promote have the efficent one to supervise now his conpagny too + added pay.
excelence should be rewarded and competion is good.
but neo-capitalism also can likewise reward the same incompetence.. the greedy bad firms having more war capital.. to buyout or undercut and run at a loss until they get monopoly and max out price and minimise wages and quality..
you full well know amd on purpose reduced the production of 7800x3d chips to create artificial scarsity and not yanked up 9800x3d production as high as they coulf eithef..
there IS production capacity they COULD buy.. or use.. they just choose not too to keep prices high.
and yes they can get away with that due lack of competition.
but a good firm would not get THAT greedy.. it would be satisfied with great income numbers..
trying to squeese out as much profit as you can even if that means a lower quality product in the hands of less customers.. in not ok...
sure a compagny needs profit..
but there is a point where enough is enough.. one should no go for max profit. but for making as many the best product you can.. (while still having healthy numbers)
people said well prices are now THIS high cause extra demand due xmas.. many people ask pc as gift.. thus more demand.. after xmas that extra demand will fall away.. and prices will drop.
well they aren't.
proving that it was not xmas demand its indeed amd on purpose not pumping out as many chips as they can to keep scarcity.
thats not commerse thats not making a product your proud at.. thats scalping!
OK none of that is even remotely relevant, or likely true tbh, but it does show you have no idea of the expenses involved in running a business or producing a product.
Your one retail example shows buying cheap low dare stock and relying on selling in bulk and even then at a far higher margin than you suggest a multi billion dollar company could afford to run at, oh, you keep bees for fun, that's cool, but, again, not really a business model you could live off of at those rates, fine for a hobby though.
As for the charities, I am guessing they went down the pan after you left as you were doing a job as, once more, a hobby, so could afford to work for free, unlike those who need to support themselves and their family from the job and none of what you said is particularly sustainable, sadly.
Though I will praise you if it's true for trying, frankly I feel the way most charities are run is disgusting.
many charities are just scams 1 rich ceo early halve the charities annuals budget even small ones pay 300k+ wages.
-
tag on revenue streans by corps who rip of customers by charging 10x as much than donating a cent to the charoty so they can claim the product is so expensibe cause charity
-
than some goverment subsidy leaching (socialise the losses capitalise the gains)
+
spend the other halve of the revenue on marketing to lure in more suckers. so that veeery little remains for the actual goal.
+
guild everybody else working for the charity to do so at slave wage.
=====
and many charities that are not scams can just be sooo used to "just ask subsidy" they never think that they shoulf try to keep that taxburden as little as they can.
i on the other hand am very aware that public money as well as money from donations should be handled 100000x more efficient than profit. just as i am akways WAY more carefull with something i borrowed from somebody else than my own stuff.
i find it weird for many people it works the other way around.
and no the charities i set up did not run into the ground after i was done.. i sometimes did have to set things right a 2d time again at a later date but not from total ravage more like they started to run a small deficit and wanted some help to adress that before itbgotca problem.
there was a food kitchen project in my city.
they got free use of a building owned by the city. that had a kitchen and not had to pay for utility.
they got on top 40000 a month cash subsidy
--
they operated it by giving mentally handicapped the chance to cook the meals good social activity for them but that ment also paying professional social workers to supervise.
-
the customers were elderly people in the city (often on a very small pension) who for the low price of 2.50 could get a homecooked meal home delivers (meals on wheels)
*to this end the orgabisation also owned a van with all the cost imvoved (cars here are slapped with mandatory insurance ownership tax and mandatory annual road satety check & repairs
+ petrol prices are very high)
when the city council decieded they would demolish the building + end the subsidy... all the volenteers and employers did was seek media attention and complain.
in a vain attempt to get the city to grand them a new location and keeping their budget.
i stepped in and interveined.
i wanted to save the project but saw clear waste.
1 the social workers
2 the idiotic low meal prices that never were raised in 30 years
3 the van.
first point 1 :
I went to the clinic they were from
-i wanted them to send their own social workers along with their patients.
they at first would not budge.
"hiring more staff we have no budget for"
to thay I had a reply. : you send a lot of them to us.. meaning less client left in each group. so at those hours less staff is needed..
why not merge those 3 groups into 2 those hours of the day. freeing a few employees to come to us.
-they not wanted that "that will increase work pressure staff will not like that.
I rebuted if not they will always be all in the clinic so that extra work presure you will have anyway.
-
end of story they would come only 1 day a week om friday as some clients went home in weekend and it would be 1 different group each week.
and the clinic would send their own staff of that group along.
-worked for me cost cut.
the cooking on other days was not much a problem most of the cooking was already done by volemteers the mentally handicapped were as much a disttaction to them as they assisted) some were sad to no longer have that interaction and some did quit but a few calls to churhes in the region andasking my other volenteers if they knew somebody and i refilled the spots of the 3 that left
2d issue : a kitchen.
-i did not saw the need to have sole use of the building all we needed was a few hours a day.
-but it could not be a restaurant used kitchen as these volenteers cant clean a kitchen upto THAT standard.
-i found in the end the local boyscouts who had a large kitchen in theor clubhouse wiling to rent us use of their kitchen most days (their were about 50 days a year they would be sleeping and thus eating at their clubhouse but 315 days a year is better than 0.
+for clients who absolutely needed us it would be no problem to get delivered 2 or 3 meals at once and reheat them. most were capable of that and those who did not did have a dayly visit of a nurse to help them in/out bed and wash them.. and they had no problem putting their meal on the microwave for them after all that took no time at all.
2d problem fixed.
(the boyscouts did want rent and utility which we set at 150 euro a month or 1800 a year.. to be proportially increased with utility prices.. (they had 3 years left in their contract so it coulf mean slighly diffetent rate.. bit the scouta basicly only made less than 50 a month on this deal most was the cost of gas and electicity for the cooking.)
-i parked the problem of how to raise that 1800 for later..
3 the van had to go to much upkeep.
but people only saw the problem how to get 600 meals to people without?
we also did not have a lot of volenteers to deliver only 2.
the logical solution for me was have MOST people pickup their own meal and buy 2 cargo e-bikes to deliver few people who cannot.
those cargo bikes could be paid from the sale of the van.
*but old people aint walking and if the weather was a bit bad even less so.
however i asked each clienyt to find somebody friend or family to come pickup their meal 1 day a week. than i would try to get it deliverd the other days.
and give me their info so i would not give the meal to the wrong person
most did as this was a reasonable request.
well now i contacted all those people and asked if they be willing to also deliver a few meals to clients nearby their relative.
a bit pressure (at first all play the buisy card not wanting to spend the extra 15 min on a few more deliveries.. but when I explain i work for nothing and that unless i get each person to do a few deliveries more i have to cut clients even though i not wanted too.
well lets say many were eventually willing.
and with the cargo bikes we could full in the gaps.
than finally price.. 2.50 per meal was idiotic.
it did cost us at least 6-8 euro to make each meal on ingredients alone.
i also pointed out our clients may be old, fragile and sometimes sick they do have cash!
-but as they pointed out.. not all of them have! some have only state pension.
well i pointed out. that too has risen.. in 30 years.
but tell you what. we from now on charge 10 euro a meal. but we will do 60% off for the poorest clients.
-flat out askimg old people if they need a discount would not work. many would feel ashamed to ask for this discount.
and many others would say to be poor when not really.
*but here i could once again call those pickup people explaining that the meals aint subsidised anymore andnow go to 10 euro.. but for clients for who that could not be affordable they should contact us with their financial info and we help them put.
- this worked well we got just shy of 150 requests.. and we checked and granted 80 of them.. (and later 2 more they technically earned just above what we drawn as line but they had pickup drivers who dropped off 11 and 14 meals. both driving 3 days a week.
(i not risk to loose those they were less than 5% over the line..)
82 people at 4 + 518 at 10
minus the 8 euro preperation per meal.
= 708 profit per day.
while a little reserve is good..
this was too much. and i had not even talked to the city yet.
getting a 2d day for the handicapped was not feasable..
*those social workers did cost 60/hr
and we needed 3 for 5 hours
900 euro just to have them 1 day.
i tried contacting the city maybe SOME subsidy was still possible all i got trough was a a grant for the 1800 euro a year. as that would go to the scouting somehow they could not give us a little subsidy but the scouting 1800 more per year on our behalve was no problem
ok since we still had a surpluss
I first decieded to drop price of all meals by 1 euro (9 normal, 3 disounted)
-leaving 108/day profit.
**this hoever ment that we still made nearly 34k a year on the 315 days we were open. and thats presuming each meal cost 8 to make (some did cost only 6 or 7)
i than though up something better.. 708 x 315 days was enough surpluss to say "on the days we dont cook fresh the meal is free"
(many clients were grmbling about paying full price for a reheated meal.. but when we said they would get those free well they LOVED that.
we now had a closed budget we had about 12000 in profit first year (i did not imediate noticed the hhe budget surpluss lets say the presure to get things running again was high. and actual cost per meal was a number they only could gice me arfter a few months running)
and about 5k each year.. after.
i gave all volenteers once a year a 50 euro christmasgift for their work.
leaving a healthy cash reserve of nearly 19k
-
i renegocisted thr deal with the scouting for 5 more years for now 2k a year.. the city was not willing to increase this time but 200 a year out our own means was no problem
8 years later i was recontacted.
problems had arisen if i could help out once more..
-the reserves had reduced to 1500
*part understandable
-the city had cut the subsidy to the scouting so now all was paid out own budget
-price of energy had risen a lot so that now was nearly 4k a year to the scouting.
part ok :
imgredient prices had risen but by making meals 10 again and 5 for discounted.. that part was still fine.
part stupidy.
-they had placed the bar for discount much higher leading to 250/600 clients getting discount.
-they haf reduced the meal varity from 45 to 15 repeating only the cheaper ones.
**they had not been diliegent in getting each new client to deliver a new driver.. and old people die so almost 150 less drivers now.
they had covered that by blowing most the cash reserves on 6 more ebikes.. and delivering themselves after cooking.. but now the pool of volenteers was drying up...
the christmas gift having been stripped also not helped here it may be a just 50 euro once a year.
but the extra workload + aging volenteers + no gift of apreciation caused dropouts.
awell i had to put things in order again they were now running at a deficit.
i called all clients without a driver tied to them and pointed out i not wanted to raise price.. so can they have somebody pickup the meal once a week.
i repeated what i did before and fixed this.
*this time I also recruited the grandaughter of one of the volenteers who often visited and amways said liked to hrlp but yo cant helpt a whole day..
she was too buisy for 5hr a week cooking but becoming secretary and maintaining this calling work was right in her alley.
*so this wont go astray again.
next the budget & variation.
meals that used to cost 6 now took 8.50 and meals of 8 now 11.
so the price need to go up a lot.
and on top that nonsense of 250 discount got to go.
i explained.
price meal must be 1+ 55/315 if 0 discount meals.
even higher if more.
this would mean mealprice would rise to 14 euro at least..
they all found it so harsh .. 10 to 14 ok.. but 5 to 14.. for 170 people they had a problem with.
so in the end they agreed a low bar at 50% a second bar at 75%
that way about 80 would pay 7.50.. 170 would pay 11.25 and the rest 15
that left a surpluss of 1162,50 per day
-
with the 50 free meals per year that leaves
36187,50 a year.
minus the 4k for scouting
32187.50 a year
i had to install somebody better to do these numbers each year and who would not be affraid to increase prices.. I also had a volenteer shortage.
i found a solution in hiring a retired kitchen chef... i found him calling around for volenteers he was 58. so he still had some years in him.
he was willing to work 315 days x 5hr for a very low rate of 18/hr (he basicly did it for charity of sorts.. i mean this basicly is minimumwage.
he was used to 50/hr.
but basicly he only charged what his pension would be lower by retiring 9 years early. and he was used to much longer workweeks so 5hr/day and no a la carte was relaxt for him.
he also was also used to create a menu and prices.. so instead of recycling the now decades old 45 meals he would bring in his own.
while he would still keep things simple enough that the amateur volenteerts could help.. or do it on their own should he be unavailable some days (getting sick can always happen)
he basicly kicked out most the old meals and created 30 new all season meals and 60 seasonal (15 that would swap out per season)
which took into consideration seasonal prices.
+ wanted the freedom to occationally astray from this if he felt like it.. fine with me
+ he also could set the new menu price. it was quite easy for him to understand my pricing model.
(he was not the person to jack up price to go ♥♥♥♥ elaborate he was used to cook meals in bulk in hospitals so quite used to cook healthy but on a budget and to know what was realistic price per head)
this new chef also allowed me to finally get 5 new volenteers and 2 old ones to return..
no more delivery just cooking and often only assisting a chef both lowering the workload + the idea of working with a real chef and learn a thing or two had apeal.
I also started by blowing most the 1500 left in reserve on a nice meal prepaired by chef for all volenteers and their +1 and chef ofc could bring his family too.
and i made clear from now on there would be an annual dinner AND a gift
to make sure the volenteer pool stayed full i also talked at the diner to the partners (many volenteers were ladies and their husbands often had more skills needed to motivate people)
I got 3 capable volenteers to fill to spot of chairman, acountant and recruiter.. who together with the gitl secretairy would held one meeting every 3 months one of those with all volenteers to fill a position shoulf one step down.
ok fixed and fixed.
ofcourse I still had some problems.
reserves empty.. and current budget annual surplus of 3837.50 a year. which if we take off the cost of annual meal and gifts is closer to 1000 surplus.
and our law does not allow to pay less than minimumwage and given that minimumwage needs to rise every year.. thats a slim margin and jacking up mealprices so soon again not ideal..
i rembered those 6 surplus bikes.
but i could not use them commercially.. and no vokenteer wanted or needed to ride them.. should i sell them for a fraction of purchase price?
no!
i made up something else..
those mentally handicapped.. were not all as severe.. some could function a bit better than others.
some even at a 8yo lvl of intelligence.
+
those old people if weather was bad could not go outside that also cut them off from doing a small grocery trip.
well now adf the two together..
and the idea brew.. we can stock some items the old people often need and lack if its cold/slippery/dark.
they can call in what they want (dont ask them for websites)
we can bill them just as we do with the meals.
and using the 6 bikes the more capable mentally handicapped can deliver.. the bikes have spoken navigation so they can understand.
i pitched the idea.. the scouting was ok with me storing some items as long as limited to one closet
and some talk with the clinic.
they were loving the idea .. this would allow some clients to come more than once every 3 weeks again.
it was not that succesfull maybe 10 trips a day on 600 clients. giving most handicapped two trips at best.. but they seemed fine with that.. liked waiting for an order just as much. and being less handicapped they were also not so much a burden as the other group was ( think the group was like 30 toddlers berserking.. these more like having 6 8yo around)
still the elderly loved the concept and often started to hand written shoppings list "for next week/tommorow instread of calling.
and with a 2 euro delivery fer that still was 20 euro extra per day x 315 days was 6300 extra revenue.
budget fixed and more of the old goals restored.
than i stepoed away again.. and since than it now has run over a decade it still excists and they have not called my aid again.
so my efford has kept the project running after city council cut it for 2 decades now