Tuesday, March 18th 2008
BFG Announces 100 Day Graphics Card Trade Up Program
BFG Technologies announced today the BFG Trade Up program. The program is designed to give customers a one time opportunity to exchange their current BFG graphics card within 100 days of the original date of purchase for a better model and only pay the difference in price, plus applicable taxes.
"As industry innovators of 24/7/365 technical support and the graphics card lifetime warranty, the BFG Trade Up program further demonstrates our continued commitment to provide value-added products and services that extend our customer's technology investment," said John Malley, senior director of marketing for BFG Technologies. "Newer, faster graphics cards are always being introduced into the market. Knowing that the BFG Trade Up program is available, customers can confidently purchase a BFG graphics card today knowing that their investment will be protected when newer graphics cards are launched soon after. The BFG Trade Up program will also provide customers an opportunity to upgrade to a model more suited to their performance needs."
The BFG Trade Up program applies to all BFG graphics cards released after February 21, 2008. This includes all BFG graphics cards released by the company after this date including all BFG NVIDIA GeForce 9-series products. While the program is currently only available to U.S. and Canadian customers, BFG will offer the program in other countries as becomes feasible to do so.
Certain terms and conditions apply. For more information about the BFG Trade Up program, visit www.bfgtech.com.
Source:
BFG
"As industry innovators of 24/7/365 technical support and the graphics card lifetime warranty, the BFG Trade Up program further demonstrates our continued commitment to provide value-added products and services that extend our customer's technology investment," said John Malley, senior director of marketing for BFG Technologies. "Newer, faster graphics cards are always being introduced into the market. Knowing that the BFG Trade Up program is available, customers can confidently purchase a BFG graphics card today knowing that their investment will be protected when newer graphics cards are launched soon after. The BFG Trade Up program will also provide customers an opportunity to upgrade to a model more suited to their performance needs."
The BFG Trade Up program applies to all BFG graphics cards released after February 21, 2008. This includes all BFG graphics cards released by the company after this date including all BFG NVIDIA GeForce 9-series products. While the program is currently only available to U.S. and Canadian customers, BFG will offer the program in other countries as becomes feasible to do so.
Certain terms and conditions apply. For more information about the BFG Trade Up program, visit www.bfgtech.com.
32 Comments on BFG Announces 100 Day Graphics Card Trade Up Program
- Christine
BFG sells its 8800 GTX OC for < $370 at Newegg.com right now. At one point they had the worst pricing.
In my mind a trade up program is kind of like Rent-A-Center. You can get some good stuff there but the total cost of things is so outlandish that IMO it takes advantage of people in a not very nice way. At the same time it supports some folks who can't find a way to save up some money and buy the stuff outright so it supports the whole gotta-have-it-now mentality. I think it's right up there with a payday advance.
I ran through the numbers on what the actual cost would be using the information available on eVGA's website in the above post. I've made similar posts in other forums as well and I always ask the question, "Could anyone share with us the actual costs they experienced from using a trade up program?" but I have yet to have anyone do that.
I've never used a trade up program myself so I don't have a real world story myself. Both eVGA and BFG are competitors so everyone should take what I say with a grain of salt lest I be accused of trying to flame them (which I'm not).
But when I add up all the costs involved in the above example of going from an 8600GT to an 8800GT the consumer winds up paying $68 more then if they just sold the card on ebay or to a friend or something.
I chose those two cards because they are as close as I could get on price which is where the consumer loses the least amount of money in the deal. As the card being upgraded to gets more expensive, the associated cost of the replacement card goes up even more.
So I'm not trying to take a poke at anyone, but I would like to understand exactly what the cost to the consumer is for trading up their card. Ultimately THAT is what determines whether or not a trade up program, IMO, is any good.
I can easily say that if anyone can show me the math on now to make something like this work WITHOUT hosing a consumer Palit will roll that program out within 60 days. But that's just it- we have to have a program that doesn't screw either the consumer or Palit.
It's an interesting idea but personally I would never use it. I can only see it appealing to real enthusiasts who always have to have the latest and greatest.
The problem I see with this is that it doesn't FEEL like you're paying more but when you do the math you can see the difference in a reasonably substantial way.
If it was just $10-$30 I would be doing this in a heartbeat.
So I'm not trying prolong the argument either since I don't see it as an argument. I really could be wrong and if that's the case I want stop it. I don't like being wrong. I would also want to start this program at Palit.
In order to do that, I have to sit down with an accountant and go over the pricing concerns which means I have to have real examples of how the thing works. When I did the math the first time it didn't work out in the consumer's favor so I quit.
I would be very appreciative if you (or anyone else) can show me where I'm incorrect. I really would like to have a trade up program.
Someone please correct me if I'm wrong, though, or explain this a little better.
As of right now, though, I gotta agree with Palit_Guy
So lets make a hypothetical, lets say I were to buy the 9800gtx today for $350 w/ $7.60 shipping on newegg. So thats $357.60. Now, lets say mid-July the 9900gtx hits, and that new core is a real killer (enough to put the performance 1.5x or so that of my current). Now, lets just say that at that time the price of the 9800gtx drops to $259 (as is the current case w/ the gts 512) and the 9900gtx markets for $400.
Ok, so I have to sell my 9800gtx for less than $250 most likely, as nobody's gonna pay a price for used what they could get new. Lets say I get $240 out of it. So now, to buy the 9900gtx, I have to spend $160 + shipping essientially. However, if I had the step-up, I would pay the $50 difference between my initial card's cost and the new card + shipping, probably around $60.
Now, of course this is all hypothetical, and likely, I wouldn't be able to get $240 out of a card that normally goes for $250 new. So the step-up saved me $100+. Its hard to make accurate judgments about hypotheticals, b/c is often different. But thats my example.
And by the way, thanks for being so open to things like this. It really is good to see a rep knowing where to look and how to please the customer. :)
As far as whether it's cost effective, look at it from a marketing point of view because that's really what this activity is all about. The actual number of people that take advantage of a trade up program seems to counted using no more than 4 digits. I can't say specifically what our sales numbers are (no need to get fired) but I can say you need five digits to describe our monthly sales and that number will be going to 6 digits very soon.
So even if it's 5,000 people per year trading up their card it's just a really small number in the grand scheme of things.
So when you have a program that so few people participate in but spend so much time talking about- that's marketing. So if the company loses money on the program over all, they can offset some or all of that loss by taking a pull from the marketing budget.
This also gives me pause for thought because if I have to give up some of my budget to support a trade up program, that is money I can't spend on giving cards away in forums and fun contests. So at some point we have to consider what gets us more exposure and balance that against our conscience and what is fun to do.
But, then again, your kinda "locked" into that manufacturer's hardware if you do want to further upgrade in the near future - you can't trade one company's stuff in and go and grab another brand, even if they have better specs.
IMHO, I see trade-up programs as being more beneficial for those that only buy into low-end and mid-range products; but for those that like to stick to the 1337-range of cards, I don't see that as being cost effective, and there are also fewer releases in this category as well - meaing one might be pushing their luck hoping the next big thing will be out before your grace period is up.
Thanks for taking this the right way and not just getting frustrated with me! I've been playing with this in excel again just to make sure of the numbers so it took me a bit. I also looked up all the prices at evga's site, newegg and ebay to make sure I'm using real world numbers.
Just so we're clear, I'm trying to talk me into this, not you out of it.
To make things easier I have rounded up from all $XX.99 prices to a whole number.
Current Newegg price for evga 9800GTX model 872 is $320
evga msrp is $360
Current Newegg price for an evga 9800GX2 is $500
evga msrp is $600
original launch price for evga 9800GTX 872 $350
Ok. So you spend $350 on the GTX (at launch) and now you want to trade up to the GX2. The trade up program looks like $350 + ($600 GX2 msrp - $350 orig purchase price) = $600 total spent.
The ebay method looks like this. You buy the card for $350 (at launch). You sell the card on ebay for $250 (they are currently going for $299 and up) and buy a new evga for $500 giving you a total spent of $350 +$500 -$250 = $600.
If you waited a month to buy your GTX the original purchase price would be $320. That would put your trade up cost at the same $600 but the ebay method would go down to $570. But that's only if you stick with evga. If you were to buy a BFG instead you couldn't use the evga trade up program but the ebay method would put your total spent at $550.
So what we're seeing is a range of about $0 to $50 difference between the two methods. If you do better on ebay the difference gets bigger and if you do worse on ebay the difference gets smaller.
The only other consideration is shipping. In the trade up method you have to pay shipping to you from buying that card to begin with, sending it in and from trading up to the new card but the ebay method you only pay for shipping the cards you buy for two shipping fees.
In my case, the BFG card has free shipping while the evga card costs $7.
I'm wondering if there is some way we could offer some kind of Palit loyalty program that would just offer a flat discount of some sort for buying another Palit card when you upgrade.
Something simple like register at our consumer site (under development) and register your card. When you buy a new one we could issue some kind of coupon code or something that would get you a $10 discount on a new card.
@farlex, how would that compare in your mind to a trade up program?