Posted by Suplee_Mental at 209.107.0.57 on December 05, 2003 at 11:57:51:
In Reply to: If you're talking about the DVD's... posted by Kevin on December 05, 2003 at 11:31:45:
fuck, I am an idiot.
: : 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.