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Forums - Sales - Forced Wii bundles: An independent game store's perspective

Moongoddess256 said:

I think the distributor takes a chunk of the profit for theirselves.


I still think it's more than a little odd that he says, "but I lose money on this product and I only got 15 for the first two months of December!"

15 is a lot of consoles for two weeks for an independent retailer.  Why doesn't he just follow the rules?  Or refuse to carry them until late 2008 when the Wii will possibly be briefly in stock before the inevitable shortages of the holiday rush?

If you have a problem with people ebaying the Wii, then limit Wii purchases to one per credit card per year.  This would increase your attach ratio because then you'd have more people coming in to actually purchase the Wii.  And it wouldn't be breaking any rules. 



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TheBigFatJ said:

I remember reading about the profit margins on consoles right about when the Wii and PS3 were released, and I believe that it was closer to $6-$12 depending on the console. Not $4. I don't know if he's being accurate here, but if he doesn't make money on Wiis then stop selling Wiis and sell the software and accessories instead. Nintendo isn't forcing you to sell their product.

$4 out of $250 is also closer to 2% than 1%.

Hopefully someone with retail experience and access to this information can shed some light on it.  Is is suggestion that they're making $4 per console accruate?


The big stores make $6 to $12. The indie stores pay more (i faced the same thing when I owned a small chain of indie record stores......). This sounds about right.



BAM! There it is!
 
Wii Code 3456 7941 4060 2924
COD MW Reflex 541192229709

Damn, it's as if Toys R Us just picked the 10 worst selling games that they need to get rid of. That's pathetic.



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I'll tell you who is really making out on this. The stores that sell used items. Theres a store in my city that buys used systems called Entertainmart. They will buy your used Wii for 400.00 then resell them for 500.00, and that's for a used system people. I went down to the store to see if the rumors are true. Not only was it true, but they had 40 Wii's in stock and there was 4 people in line to buy them! I asked one of the clerks and they said they can't hold on to them. He said that those 40 will be gone within the week! They have also given ridiculous amounts of money to people for each form of systems of the 360 and PS3. They have marked up those prices as well and they have sold great too.
To bad VGchartz can't track used numbers as well.



David

Entroper said:

I don't think you can sell Wii software without also selling Wii hardware. The same would go for the 360 or PS3 (or any other console). Also, if he stopped selling Wiis, he wouldn't get as much traffic to his store for people buying software. It's not all black and white, cut and dry -- everything has an effect on everything else.


 I agree it would definitely impact his business which is why he is still doing it.  The point was that he has a choice and if the result is really so awful then don't do it.  The fact is that it does bring traffic and he makes money from that too.  

I'm sure he would prefer to make a bunch of profit on each system but onfortunately the retail business is extremely tough (like he mentioned) and these sorts of dynamics are common.  Lots of items sell at crappy margins but you sell them to bring in traffic.  At least the Wii isn't suffering from the other problem small retail chains hate...which is things that take up shelf space and never go anywhere...thats money and shelf space lost. 



To Each Man, Responsibility
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JMan said:
Yeah, but this is absolute BS:

http://www.toysrus.com/product/index.jsp?productId=2967682

$700 for an absolutely craptastic bundle. Sorry, absolutely NO EXCUSE for that. At the very least, we should get to pick the games. "Wii: $250 with a 3 Wii Game purchase" would be better. What does the store care if it is going to be sold on ebay, the store gets the same amount of money either way.

 I think you are being unfair. Not every game in that bundle is crap. For example, you got Zak & Wiki and ... and ... and ... well ...

*run away* 



Satan said:

"You are for ever angry, all you care about is intelligence, but I repeat again that I would give away all this superstellar life, all the ranks and honours, simply to be transformed into the soul of a merchant's wife weighing eighteen stone and set candles at God's shrine."

Even some of the bad bundles are better than going the reseller route. Not that I would ever do it, but I'd rather pay $400 and get a Wii and 3 mediocre to crappy games then pay $400 and just get the console.

/just saying



Rubang B said:
Damn, it's as if Toys R Us just picked the 10 worst selling games that they need to get rid of. That's pathetic.

Look on the bright side: More Zack&Wiki sales. =P



What I find ironic is that Nintendo is complaining about "forced bundling".



 
Debating with fanboys, its not
all that dissimilar to banging ones
head against a wall 

The store owner should just buy the Wiis from Nintendo and then re-sell them on ebay, LOL.