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Nvidia's UMAP policy. (Or why Nvidia hates online shoppers.)

[H]ard|OCP has posted a fabulous article about how Nvidia is forcing e-tailers like Newegg and TigerDirect to make it harder for you to compare Nvidia video card prices. Here you can read a document from Nvidia on their UMAP (Unilateral Minimum Advertised Price) policy and how Nvidia will destroy the testicles of those who attempt to thwart their evil designs (like Newegg). I strongly suggest you read the short 2 page article but I will try to break it down for you.

For the certain video card types (9800 GTX, 9600 GT, 8800 GT and others) that Nvidia has included in their periodically released UMAP schedule, retailers may only show (advertise) the UMAP price until the shopper has taken some action (clicked a button). So when you go to Newegg's site and search for the 8800 GT you will get a list of all the 8800 GTs that Newegg is selling. Before UMAP, you would see the final price you would pay for each 8800 GT on this search result page. After UMAP, any card that has a rebate or that is sold under the UMAP price will display like this on the search result page:

Newegg List

When you click those "See price in cart" buttons you will see a new pop up window for each button you click:

Pop ups

At the top of these pop ups Newegg has strategically used the word "suggest". "Suggest" is a major understatement here folks. Nvidia has UNILATERALLY DEMANDED compliance to UMAP. Notice that Newegg has tried to soften the blow to their customers by giving them a button for "Just Looking" and they added a paragraph letting them know that when a product does not have an advertised price, that it is actually a good thing.

Now for TigerDirect's concessions. On the front page of TD's video card page (or after you search for a video card) you will see a crossed out price with a blue icon next to it if the price is below the UMAP price. Clicking this blue icon will yield the following pop up:

Pop up TigerDirect

Once again they use a pretty kind verb ("requested") to describe Nvidia's tyranny. Here is a screenshot of a card page with a "Lowest Price Tag" before and after the click:

Tag

So now we have seen what Nvidia is forcing these sites to do and we have seen what will happen if they refuse to comply. Now lets talk about why Nvidia is doing this. Are you ready? You may find this to be hilarious and maddening at the same time.

Nvidia is trying to combat the "confusion" that a person feels when they see very similar video cards at several different prices. Nvidia does not want confused people to not buy from Nvidia (or to buy from ATI) because they are confused by the difference prices of an overclocked 8800 GT and a stock clocked 8800 GT. So instead of trying to educate the consumer (by sending them to GPUReview.com) they are trying to trick their customers into thinking that all their cards are the same price and offer the same performance.

Mike and I both thinks that UMAP sucks noodles. We encourage you to tell us how this makes you feel in the comments. Please remember that this is entirely Nvidia's doing. Newegg and TigerDirect have no choice in the matter unless they want to lose huge amounts of money. By the way.. if you have any INQUIRIES about the UMAP policy you can contact Timo Allision at tallision@nvidia.com. 

EDIT:

I forgot to mention that this will not affect GPUReview's Newegg price links. We do not sell video cards so Nvidia does not have any power over us. 


13 Comments
Tuesday, June 17, 2008 1:12:05 PM
Mike
GPUReview Founder
When I get some time, I'll rework our parser to get to the lower prices and make sure that's what gets listed on our card pages. I understand where nVidia is coming from, and that's why I think it's stupid. :)
Tuesday, June 17, 2008 1:44:27 PM
Duesco
Member
Oh, this is ridiculous. How stupid does nVidia think we are? I was able to explain video cards and their intricacies to my computer-dummy sister in under ten minutes. We are NOT total morons.

I love my 9600GT, but I think my next card is going to be an HD 5000/6000, depending on when I feel like upgrading. Hopefully ATI can make it that far. I love AMD's processors, and with the HD 4000 series, hopefully they can make nVidia's life annoying.

And, just perhaps, AMD/ATI won't treat me and my peers like absolute fools.
Tuesday, June 17, 2008 2:06:00 PM
Next time I'm in San Jose, I think I'll egg the Nvidia Corp Offices. :(
Tuesday, June 17, 2008 4:26:33 PM
Sunny
Senior Member
I think this policy is pretty retarded. Lol Mach5 I will send you some eggs to throw for me. Just for sh**s and giggles lets write ATI on them and coler them red.
Tuesday, June 17, 2008 5:28:43 PM
Steve
The Progenitor
Since most of us are too far away to throw eggs, I suggest that you send an electronic piece of mail to the person that I mentioned at the end of the article.
Tuesday, June 17, 2008 7:06:14 PM
jimday
n00b
i don't have the chance to buy from these site, so I always use gpureview to my guidance, and then buy from my local shop.
Tuesday, June 17, 2008 8:17:56 PM
First, GPUReview is always my first-stop video card all-in-one education center. Keep it coming!

Second, I don't think this is a really big deal. It just something companies try to do now and then to keep profits high (I guess). The stupid part is that it makes shopping harder on the customer (not really a good idea). Hopefully they will change their policy soon. Who it really hurts is the manufacturers who have a harder time out-pricing each other. So I guess I'm not too upset, just annoyed.

Third, I can still come here and get the prices anyway, so there, take that. Also, I think Newegg's workaround is a cool snub ;).
Tuesday, June 17, 2008 9:54:49 PM
And this is why I'm glad I'm Canadian.... NCIX and Tigerdirect.ca don't have to comply to the UMAP policy, because its illegal to enforce here in the great white North.

Of course, I still can't buy from Newegg which sucks all kinds of bum, but at least I don't have to get annoyed at Nvidia (who I generally kind of like).
Wednesday, June 18, 2008 1:54:20 AM
aliquidparadigm
Senior Member
Thankfully Power Search still sorts the results by the lowest price-after-all-the-bs if you ask it to. (c:

Example : http://www.newegg.com/Product/ProductList.aspx?Submit=Property&N=2010380048&PropertyCodeValue=679%3A38081%2C679%3A37879&bop=And&Order=PRICE&Pagesize=100

Yay for table breakage!
Wednesday, June 18, 2008 6:31:27 AM
Radiator
Senior Member
Times like these I'm glad I don't use online shopping... this policy is just plain moronic .
Damn , Mach5 , I'll send you a whole supertanker load of eggs to throw at them :) .
Wednesday, June 18, 2008 11:39:39 AM
heh-heh I live about 2 hrs away. I make trips up to the south bay about once a month. hmmm. I should do the same to Apple land in Cupertino too, just because.
Thursday, June 19, 2008 2:00:24 AM
hdantman
Senior Member
Hmmm...apparently competition is no longer a part of our free market society. Like Mike, it's knowing where these yokels are coming from that really raises my ire. I'm a computer professional who is self employed. If I got big enough, I suppose I could try to get legislation passed that requires all computer techs to advertise their hourly rates exactly the same--that would be great for the consumer, and for competition...

I have two 8800GTs, and I'm already pissed at nvidia for not allowing 3-way SLI on the $350 790i board I purchased (also a marketing stunt).

Newegg has already made a tremendous amount of money for nvidia--really. Do you know any savvy person who HASN'T bought something from them? I'll be sending an email--sheerly out of principle. GPUReview--you and the Egg both rock my socks off.
Thursday, June 19, 2008 2:00:42 PM
I just took a training course with my company regarding Antitrust laws, which are designed to protect and promote competition by limiting activities that restrain trade and/or restrict or harm consumers. Pricing agreement that could be seen NOT benefit the consumer are almost always suspect, as the court will analyze such action in hindsight and what once seemed beneficial may turn out otherwise. Policing and threatening dealers could be deemed illegal it is ruled by the courts as hurting consumers overall. The practice of "ADD TO CART" stops other web based deal-sites from listing the price; ie Pricewatch, Epinions such site can't link the lowest price, so isn't it causing the buyer NOT to get the best price.
Exactly why I don't like Nvidia, their marketing is always scheming to confuse and bamboozle consumers in all types of ploys. They can't stand on their engineering and expertise; they perplex the market with a dizzying array of half bake cast-off instead of relying on their merits.
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