scat398 said:
steverhcp02 said:
The thing people are forgetting and i only saw it mentioned once and briefly but i skimmed the thread is that:
The market, especially electronics isnt stagnant so if the 360 sold 75k in the US last week, and lets say 10 per walmart, 35k available not every single person buying one at walmart will be someone who was not going to buy one elsewhere in the states.
So lets say youve got 75k across BB, Target, Gamestop....this deal may move 10 or 20k of the people already going to buy a 360 who would have conributed to the numbers regardless only to a new locale. Not all the 360's sold will be to people sitting on their couch with no intention of buying a 360 this week or in future weeks.
Its not like the number of walmart is going to be strictly an increase as if walmart never sold 360's before and all of a sudden their sales will be counted on top of past sales.
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The concept for a holiday high end loss leader sale is a little different. A better example of this sale would be to say the average person has a budget for 300 dollars for Christmas, but Best buy decides to sell a 46' lcd for $399. A certain percentage of those consumers will purchase the $399 TV and still spend the additional $300 dollars. So basically a person that wasn't planning on purchasing the item decides the value is to good to pass up.
Now the big question is, is a 360 or other gaming machine qualify for this type of response? We won't know for a while but initial reports seem to suggest 360's have completely sold out. Walmart will look to see if those shoppers continued to purchas other items to determine if it was a success.
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I agree completely. But to assume that 2 retailers offering this sale wont be dominant to the location shift theory is a bit gullible, imo.
This isnt a christmas sale or black friday where you will see sales of the such across all stores ushering in more people. These types of one day sales not in the middle of holiday periods will not have the same effect because:
A) it may be too early for the bulk of americans to be ready or capable of spending xmas shopping money.
B) The price amount is stagnant meaning people STILL have to spend the same amount, the budget is not changing, they arent necessarily "saving" money on their purchase they still have to commit the same amount canceling out your $300 to $399 point.
It will surely bump sales, but not the extent the OP mentions (140k from 89k) it may shift it towards 110-115k, imo.
