Posted by Kevin at adsl-64-167-89-19.dsl.lsan03.pacbell.net on December 05, 2003 at 11:31:45:
In Reply to: theres nothing wrong with kevin merchandising posted by question214 on December 05, 2003 at 10:47:27:
: but just because we are fans, why should we pay dbl what best buy charges, i
mean im not helping him put food on his table, if anything hes making it harder for us
...lemme give you a quick lesson on volume purchase.
Best Buy can charge nickels and dimes for the DVD's because they buy in massive, massive
quantities. When they buy from, say, "Dogma" from Col/Tristar, they're buying in large
blocks. Let's say, conservatively, they buy 10,000 units of "Dogma" from Col/Tristar over a
quarter; well that's not even the only title they're buying from Col/Tristar. They're order a
hundred thousand "Spider-Man", twenty thousand "Charlie's Angles", etc, etc. So because
they're buying in such bulk, they're getting price breaks up the wazoo. A per unit cost of
12.35 suddenly drops down to 9.35, or even 7.35. So what Best Buy does from time to time
is use these DVD's as "loss-leaders" - in other words, they'll then retail them for very near
their cost or AT cost, clearing pennies per unit, or making no profit off them whatsoever.
The supposed wisdom behind this is that you'll come to the store for a cheap-ass copy of
"The Two Towers", and while you're there, maybe you wind up buying a DVD player, or
batteries, or a microwave. Of if you don't make an additional purchase on that trip, perhaps
you think of them when you next need a piece of home electronics. Perhaps they become
your go-to store, all because they gave you a break on a DVD.
Now, I'm not Best Buy. Shit, neither are what few Mom-and-Pop shops still exist out there.
When we purchase the DVD's from a distributor, we get charged full-freight, and in turn
charge the customer suggested retail, or very near suggested retail (charging above
suggested retail is reserved for the secondary or collector's market). If Best Buy is selling
the product at BELOW suggested retail, how can the Mom-and-Pop shops compete. The
Stash retains a slight edge, because we can give you something not even Best Buy can: an
autograph on your DVD. But the Mom-and-Pop's HAVE no edge. They can't compete with
Best Buy and the loss leader approach. So one by one, Mom-and-Pop close up shop, and
Best Buy's spring up in their stead.
And that's business, my friend. If you're against that, and you want to see the Mom-and-
Pop shops flourish, then spend a little more at their stores. If you'd rather pay less for the
product, stay with the chains.
You seem to think we charge more for our stuff at the Stash site. We don't. Do we sell the
stuff to the customer at OUR cost? No - that would be a stupid way to run a business. Then
I'd be out of pocket, what with the shipping and handling (which I'm sure someone would
bitch about after we dropped our prices), and having to pay folks to run the business (the
merchandise don't box itself, as they say). I'm not "making it harder" on you; if I was doing
that, I'd charge double for the DVD's, just because they're signed. I'd ass-rape you on the
InAction figures, just because you can buy them from Silent Bob himself.
Hopefully, this little lay-men's economics lesson will curb your charges of fan extortion or
profiteeing.