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outlawauron on 25 October 2007
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Faxanadu said:
FishyJoe said:
It wouldn't shock me if retailers were holding back stock for black Friday as well.

 What for? Why? please explain. Situation: retailer has one Wii. Two options:

 A) Put it on shelf and sell it within 2 days NOW for 250 USD and hence free up storage space and shelf space to put a new product on. And make a profit off the wii (20USD? ) that you can the either invest in new products or bring to the bank where you get interest.

 B) Leave it in storage, meaning you will have to sit on your investment longer ("opportunity cost") and the STILL SELL AT 250 USD.

Why on earth would you do that? 


Think about that statement. You hold your Wii's (lol) until black friday and put them on the shelves then to sell them immediately. Whenever a parent races to get a Wii, because it is holiday time they will also grab a game or two.

More foot trafic that time of the year, and with more people buying hardware. Consequently, so will they buy software.



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