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Bad prices/selection in Yongsan
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Atkinson



Joined: 15 Oct 2004
Location: Land of the Golden Twist-tie

PostPosted: Mon Apr 04, 2005 1:57 am    Post subject: Bad prices/selection in Yongsan Reply with quote

I went to Yongsan this weekend, and things didn't work out the way I expected. Did I do something wrong, or are my expectations out of whack?

I heard that Yongsan is this Computer Mecca, with the lowest prices available anywhere. However, everything I wanted was significantly more expensive than in the west, so I bought nothing -- besides chicken kababs. It would be cheaper for me to buy parts online from the US and have them mailed to me.

For instance:
(US prices are the highest from www.pricewatcher.com. Korean prices are the lowest from my two days in Yongsan)
ASUS A8N-SLI motherboard: $180 / W210,000
Leadtech PX6800TDH video card $295-337 / W385,000

When I asked for a lower price, they laughed and said this was already a very good price, and made no move when I left the store. I've never been a successful haggler, but they wouldn't even entertain a slightly lower price. They were stiffer on price than computer stores in Toronto. I went to several shops, all with the same result, and all prices within 5% of one another.

I was in the grungy building with all the tables set up on the ramp in front -- the first one you come to from Sinyongsan subway. I heard that's the best one for deals on systems. I wandered around outsdie, and tried getting a quote from another store, but as soon as he found out I wanted a whole system, and not a part, he told me to go back into the building I had been in, even though he was advertising systems for sale.

Am I missing something (besides a Korean interpreter, I mean)?

***

As a separate gripe, the selection was crap. There are exactly three models of nVidia 6800 video cards available, compared with the thousands available back home, and they've never heard of Corsair or Kingston brand memory. Again, am I missing something?
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Gord



Joined: 25 Feb 2003

PostPosted: Mon Apr 04, 2005 2:46 am    Post subject: Re: Bad prices/selection in Yongsan Reply with quote

Atkinson wrote:
For instance:
(US prices are the highest from www.pricewatcher.com. Korean prices are the lowest from my two days in Yongsan)
ASUS A8N-SLI motherboard: $180 / W210,000


Prices here include the 10% sales tax.

And sites like PriceWatch are used by companies as a loss leader to get you to buy from them. You will generally not find the prices they use in any retail store. Froogle shows the average street price of that model being $195US, which exceeds the pre-tax price of the same unit here.


Quote:
When I asked for a lower price, they laughed and said this was already a very good price, and made no move when I left the store. I've never been a successful haggler, but they wouldn't even entertain a slightly lower price. They were stiffer on price than computer stores in Toronto. I went to several shops, all with the same result, and all prices within 5% of one another.


You average computer store carries much healthier margins. The wholesale cost on that unit from the average Korean distributer is 197,000. They made a whopping 11,800 Won off of you (ax ate up the extra 1,200). That is a tiny 5% margin.

When I ran my store, I wouldn't even both carrying computer hardware unless the margins were at least 25%, and even then that is low.

Quote:
As a separate gripe, the selection was crap. There are exactly three models of nVidia 6800 video cards available, compared with the thousands available back home, and they've never heard of Corsair or Kingston brand memory. Again, am I missing something?


There are approximately 45 models of 6800 series on sale here. Most stories only carry popular models in stock, but can order anything. A couple weeks ago I had to order in bunch of things like a 915 chipset motherboard a 1Gb switch which were not in stock.
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Demophobe



Joined: 17 May 2004

PostPosted: Mon Apr 04, 2005 3:06 am    Post subject: Reply with quote

Nice post Gord. Welcome back.

Where have you been?
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The Lemon



Joined: 11 Jan 2003

PostPosted: Mon Apr 04, 2005 4:12 am    Post subject: Re: Bad prices/selection in Yongsan Reply with quote

Atkinson wrote:
I went to Yongsan this weekend, and things didn't work out the way I expected. Did I do something wrong, or are my expectations out of whack?

I heard that Yongsan is this Computer Mecca, with the lowest prices available anywhere.


You heard wrong. Yongsan is the cheapest place for computer components in Korea (apart from on-line). It's also comparable to the other big Asian technology centers.

Quote:
It'd be cheaper for me to buy parts online from the US and have them mailed to me.


It's possible, but are you sure? Duties.


Quote:
I was in the grungy building with all the tables set up on the ramp in front -- the first one you come to from Sinyongsan subway. I heard that's the best one for deals on systems.

You were in the right place - that's Sunin Plaza. Sorry it didn't work out well for you.

Before going, check out www.omi.co.kr to get an idea of what models/brands are good deals in Korea. Your board is an AMD board - Korea's largely Intel land. You were one step away from trying to shop for a Mac.

Quote:
they've never heard of Corsair or Kingston brand memory. Again, am I missing something?

You're in Samsung and Hynix land, though cheapie Taiwanese PNY memory is available from time to time.

Demo wrote:
Nice post Gord. Welcome back.

Seconded.
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the_beaver



Joined: 15 Jan 2003

PostPosted: Mon Apr 04, 2005 4:42 am    Post subject: Reply with quote

Gord you bastard! Where the hell have you been?
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Atkinson



Joined: 15 Oct 2004
Location: Land of the Golden Twist-tie

PostPosted: Mon Apr 04, 2005 5:29 am    Post subject: Re: Bad prices/selection in Yongsan Reply with quote

Thanks Gord and Lemon for straightening me out and for the information leads. I've been getting a lot of practice reading computer store websites in Korean lately.

Gord wrote:
You average computer store carries much healthier margins. The wholesale cost on that unit from the average Korean distributer is 197,000. They made a whopping 11,800 Won off of you (ax ate up the extra 1,200). That is a tiny 5% margin.


I read online here (and I know that nobody online ever lies or exaggerates Wink ) of people having their systems negotiated down significantly at Yongsan, and I was hoping for at least the mouse thrown in, or something. I'm spending over W1,000,000 there. Not gonna happen? Do stores not court their customers at Yongsan?

Quote:
There are approximately 45 models of 6800 series on sale here. Most stories only carry popular models in stock, but can order anything. A couple weeks ago I had to order in bunch of things like a 915 chipset motherboard a 1Gb switch which were not in stock.


I asked for 6800s in general, and the stores I went to told me same three models -- probably the three they keep stocked -- and no more. So I have to go to www.omi.co.kr beforehand and ask for the models I want when I get there. Is that it?
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The Lemon



Joined: 11 Jan 2003

PostPosted: Mon Apr 04, 2005 6:14 am    Post subject: Re: Bad prices/selection in Yongsan Reply with quote

Atkinson wrote:
So I have to go to www.omi.co.kr beforehand and ask for the models I want when I get there. Is that it?


If all they've got at the stores in Yongsan are the three versions of a chipset, then that's all they've got. But something I often experience from Korean and other Asian electronic vendors is I'll mention a specific thing I want, and the price I want to pay (or we'll negotiate), and the guy will call someone and then take off down the hall or on his scooter somewhere (presumably to another store) and retrieve it. Though logic would say that I could have gotten it for cheaper if I had found the source he'd just gone to, and cut him out, I'm happy to pay the price we settled on and save me the trouble of running around.

All of this is to say, you could go in to a shop with your Omi printout, and say "I want this, I'm willing to pay this much" and the guy may agree - and then leave his store and get it elsewhere for you. I don't consider it a bad thing.

Gord said that the stores in Korea include sales tax in their prices. I've had shopowners in Korea tell me that the online prices are cheaper than what they're offering in the real stores because the "online shops don't charge sales tax". I've never had this verified. If it's true, it's a good reason to keep buying online.

Sometimes the Yongsan stores will beat the online price. But in my experience, this is not common. Don't berate them for not matching the online price - use it as a rough guide rather than a hard-nosed bargaining chip. Push it too far and you could just end up embarrassing them for not being able to match the price you're getting elsewhere (real stores seem to hate and are threatened by online merchants, for good reason). I'm happy to pay 5-10% over the online price in Yongsan so I can take the new toy home NOW NOW NOW.
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the saint



Joined: 09 Dec 2003
Location: not there yet...

PostPosted: Mon Apr 04, 2005 12:41 pm    Post subject: Re: Bad prices/selection in Yongsan Reply with quote

Atkinson wrote:

I was hoping for at least the mouse thrown in, or something. I'm spending over W1,000,000 there. Not gonna happen? Do stores not court their customers at Yongsan?

With all due respect, what may be a lot of money to you is actually spit in the pan to them. In fact, a million really isn't a great deal of money.

As an example of the kind of discounts that someone with almost no Korean and pretty awful bargaining skills gets, I've spent over 4 million (2 mill twice) at one place in Yongsan in Sunin Plaza and got around a 5% discount on the price they originally quoted me both times. The prices I paid were comparable to those at danawa for the components. Some were a little bit more, some were a little bit less - but on average it evened out.

As for freebies, each time I also got a free five socket extension lead and last week there I paid 9000 for some blank DVDRs and got a free ergonomic mouse mat so you must be doing something wrong. Wink Don't forget the basic rule in life: If you want stuff for free, all you have to do is pay more Rolling Eyes
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SuperHero



Joined: 10 Dec 2003
Location: Superhero Hideout

PostPosted: Mon Apr 04, 2005 6:20 pm    Post subject: Reply with quote

the_beaver wrote:
Gord you *beep*! Where the hell have you been?

ditto
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Gord



Joined: 25 Feb 2003

PostPosted: Mon Apr 04, 2005 6:36 pm    Post subject: Reply with quote

I ended up taking a 7am morning job in December at a company coupled with overtime with my regular employment due to the winter break time. I very literally stopped posting on every forum I even occasionally visited. And when I wasn't working, I was doing many experiments or research related to my next business venture. 7-11, it was not just a store! But now I'm back to a much more relaxed work schedule and most of the work related to my next business is done.

Hell, I didn't even sign up at PKs board until March. And I only started posting here again because of some insane post Grotto made about some contract that was brought to my attention because if anyone believed his lies and took a stand over it, they were going to get fired with cause. Oddly, the entire thread was deleted. Luckily, I saved a copy of my reply correcting the mistakes made.

Though I won't be posting much at all after this. I've got other projects I should work on.
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Atkinson



Joined: 15 Oct 2004
Location: Land of the Golden Twist-tie

PostPosted: Fri Apr 08, 2005 4:03 am    Post subject: Re: Bad prices/selection in Yongsan Reply with quote

the saint wrote:
With all due respect, what may be a lot of money to you is actually spit in the pan to them. In fact, a million really isn't a great deal of money.


I know they don't make much off it. I was just comparing it to the price of the systems they advertize, which are mostly between 300,000 and 600,000, and rarely over 800,000.

Quote:
As an example of the kind of discounts that someone with almost no Korean and pretty awful bargaining skills gets, I've spent over 4 million (2 mill twice) at one place in Yongsan in Sunin Plaza and got around a 5% discount on the price they originally quoted me both times. The prices I paid were comparable to those at danawa for the components. Some were a little bit more, some were a little bit less - but on average it evened out.


That's the kind of thing I'm talking about. Even such a token gesture would have gone a long way with me.

Quote:
As for freebies, each time I also got a free five socket extension lead and last week there I paid 9000 for some blank DVDRs and got a free ergonomic mouse mat so you must be doing something wrong. Wink Don't forget the basic rule in life: If you want stuff for free, all you have to do is pay more Rolling Eyes


Maybe if I'd agreed on a price, they would have thrown the extra stuff. I won't know now because I'm waiting until next month to buy it.
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the saint



Joined: 09 Dec 2003
Location: not there yet...

PostPosted: Fri Apr 08, 2005 5:34 am    Post subject: Reply with quote

Well my advice would be to check out all your prices on
www.danawa.co.kr
get all these written out so that they know you know the best prices available. Then head to
http://www.itcomputer.com/Help/com_map.asp
even with basic Korean, get them to make you an invoice with allt he bits you need. Then tut tut a bit and breath through your teeth and ask if that's the 'best price' etc. Worked for me. The store people are really helpful and they make no fuss if you need anything exchanged or replaced either.

My two cents...
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chiaa



Joined: 23 Aug 2003

PostPosted: Fri Apr 08, 2005 9:27 am    Post subject: Reply with quote

Trust me the online stores pay tax. They have too! Regulations on online stores are 100% more enforced by the government.

There is one plain and simple reason why the prices are so high on computer products in Yongsan. You are basically buying from just one store!

That's right, you are buying from one store. You may see hundreds upon hundreds of little stalls, but take a guess where they ALL get their product from? Ever notice the number that they dial when the call to get the price? Always the same number. I am assuming here, but I would bet Sparkx's left nut that people who rent in that building are required to purchase from certain distributors.

All products in this country are monoplized and they have it down to a science. Let's take a baby stroller for example. Say you can get one for $199 US back home. Add the shipping of $75 for 15 day air service, add the 25% tax on the value of the product and the shipping charge you get a total of about $340. The price of that stroller here in Korea would cost you US equivalent of $375. Is it worth the $30 bucks to most people? Remember, they are making just about the same margin as a US retailer and are shipping these things over in container quanities bringing the shipping charge down the $10 each.
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mindmetoo



Joined: 02 Feb 2004

PostPosted: Fri Apr 08, 2005 4:49 pm    Post subject: Reply with quote

Also remember, imported (Japanese) electronics have a heavy tariff on them. Retailers can set the price of Korean made electronics higher for their captured domestic market. They have to compete with the world at the Best Buy counter but at Yongsan they compete with no one. A Korean MP3 player only has to be a little cheaper to win domestic market share.

Yeah, I pity the fool who comes here thinking it's a cost mecca for Korean electronics.

About the only bargain to be had is on Hollywood DVDs.
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itaewonguy



Joined: 25 Mar 2003

PostPosted: Fri Apr 08, 2005 7:29 pm    Post subject: Reply with quote

for koreans youngsan Dongdaemun etc.. are MECCAS..
but cheap??? I dont thing so..
I think its just that all the shops are in one place so you can probably get it for 5000 won cheaper at some store next door..
these places are not cheap!
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