Bestbuy

[atarigamin]

how much do u think bestbuy has to pay for a ps2 game? like if they sell a ps2 game for $50, what do they get it for?

[Jasoco]

God damn you for trying to take my topic!

 

Oh well, I'll ask anyway..

 

So, how much does a retail store buy a video game for before they resell it for the standard $50?

 

How much is profit?

 

And if a game does really badly, how far down in price does it have to drop before they start losing money on it?

 

Not just Best Buy, but places like Kmart/Target, Game Stop/EB..

[Jasoco]

Edit: Let me add a winky smiley. But I had wanted to post this exact question all day. You must have read my thoughts.

[Susuwatari]

I would say around $25 to $35 for the cost plus a markup. When I used to work at Walmart, I could use the portable scanner and check the sell price and buy price, it's not unusual to see a product with 100% markup. It is however common to see product on clearance sale and still be above the buy cost.

[Scooterb23]

I'm assuming Susuwatari is correct, when I worked at my comic book store, trpicall we'd have to pay about 50% of the MSRP for our items. Nothing I have read about the video game industry has led me to believe anything different.

 

I'm curious then how much Best Buy is losing on these $4.99 games they've been blowing out this week...while they are now getting $5 apiece for them...the sheer volume of games that were a part of this sale must have meant they were taking a beating on a lot of stock...

[chrisbid]

the markup on new video games is almost next to nothing. that is why so many chains rely on used game sales

[JerseyDevil]

the markup on new video games is almost next to nothing.  that is why so many chains rely on used game sales

 

Chris is right. I have a friend who was a manager at Best Buy. A typical game that retails for $50, Best Buy pays between $40 and $48, depending on the popularity or expected demand. If they are forced to lower the price on clearance they are partly reimbursed by the manufacturer.

 

Used games are where the profit is. My local guy pays $20 for used copy of Pandora Tomorrow and sells it for $40, 100% profit.

[Bivotar]

I'm curious then how much Best Buy is losing on these $4.99 games they've been blowing out this week...while they are now getting $5 apiece for them...the sheer volume of games that were a part of this sale must have meant they were taking a beating on a lot of stock...

 

Very interesting! What $5 games are there??? I might have to run to Best Buy over lunch!

[Stingray]

Indeed, are these $5 games for current generation systems or are they leftover PSX stuff?

 

-S

[Susuwatari]

Loss leader (selling product way below retail, usually at a loss) are often used in the first week of the new product's release as a bait to lure customer to their store, knowing the customer would also end up buying many other products.

 

So even if they sell the newest game at only $10 (MSRP $50) they can still make a nicve profit on other things customer buys. Best Buy is notorious for this practice and even got in trouble once for selling computer below retail to try and drive competitors away.

[PaulEMoz]

Indeed, are these $5 games for current generation systems or are they leftover PSX stuff?

 

-S

 

None, now. There were loads, but I went to mine yesterday and there was one copy of Disney's Extreme Skate Adventure, and EVERYTHING else was gone.

[Scooterb23]

Here was the article on Gamespot about the clearance...

 

http://www.gamespot.com/news/2004/05/24/ne...ws_6099189.html

 

Sadly, most of the games are gone, but if you have a Best Buy that's a bit out of the way...you may still be able to find a few things.

 

Your mileage may vary...

[AtariDude]

I wish I had known about this earlier. There were a couple of titles that I might have considered getting since they were so low. Oh well..maybe next time.

[MegaManFan]

The Best Buy clerk I talked to today said that on Monday morning when the $5 titles came in, they were all gone a few hours later. That quick. No wonder I never saw any!

[Lastblade]

Small videogame retailers get $49.99 game at about $40 tho (maybe a buck more or less). I am sure big chains like Bestbuy get much better deals, but still, the markup isn't huge. BB lose alot of $$ to sell games at $5 a pop but then again, it is better than saddled with huge inventory of games that won't sell (with tax implication, etc).

[chrisbid]

Best Buy can get away with this because they dont pay their employees very much, plus they sell their shelf space and endcaps to companies looking to push their games. They also deal directly with publishers, whereas most small game stores work through distributers (middle man).

 

yet if you notice, BB and others will actually raise prices on popular games. I often see GBA games with a 34.99 price tag. Im sure they have their shit together and know exactly how well a marked up game will sell.

[MegaManFan]

Most stores do. I was told Halo was down under $25 or less at most places, but as soon as Microsoft slashed prices on the X-Box, you couldn't find it ANYWHERE in this town for less than $30. I wanted to play the game badly enough I sucked it up and paid it (and I'm very glad that I did).