Originally posted by EAvilBoris
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Tesco : Games retail is Unsustainable
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Dazzyman
I know what margins games are wholesale to retail, been involved in that side for 19yrs. Not a single game in there RRP. What handheld games at 45? Only margin that can be next to zilch is consoles! Snes was 1p with Julian at GS for example?
KOA was new not 2nd hand. Wholesale drops in price longer games are out, first batch always expensive unless u want something like Fifa or COD as the publishers always want the full wholesale price. There's always a risk with titles like that as well as there usually no sale no return so you have to dump stock cheap.
If I go into tesco's and ask for DMC HD to order they will just tell me to do one but I can go to an indy and they will gladly order it for me next day online or store. I want that choice I don't want just what Tesco's deem is the generic top 40 with 30 off it crap.
As for margins well it depends what you sell but you can make a nice profit on video games. A heck of a better margin than say a butchers. Tesco's move into a town and kill all the bakers, florists, grocers etc who have a hell of a tighter margin, they then close and u loose the better quality stuff from these shops. I don't want a generic piece of crap bunch of flowers for my wife what have been stored for weeks ice cold what die after 2 days when I can pay a quid more and go to a decent florists. Same with butchers, better quality for a bit more. Supermarkets like Tesco just sell generic crap once they get rid of the competiton. God help us if they do to videogames as all they will want to buy is Cod or Fifa once there all dead.
I find that analogy a bit daft as every bricks and motar store has same overheads with much tighter budgets, reason why we seen Woolys, Virgin, Comet and HMV in trouble and u can make a shed load on a TV and peace of mind give the salesman commission sales, doesn't mean jot if u don't balance your stock and gauge your consumer.
Makes me laugh really as 22yrs ago games were always sold at rrp and games are cheaper now then they were then. PS1 Wipeout etc... Full price RRP and PC games 50 a pop or CD rom games like 7th guest at 75. I haven't bought a game at RRP for at least 18yrs, too savvy for that. Not only that in that time we have gone from 15%VAT to 20%Last edited by Guest; 10-04-2012, 03:34.
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