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Forums - Sales - % Mark-up on Game Consoles at Walmart

LuStaysTru

I can see your point there is no doubt that all three console makers have priced the consoles to sell software as that is really where they make money also on accessories if possible it would be good to add new information but not if it will get you in any trouble.



Around the Network

lol i'm working tomorrow.. i doubt it will get me in any trouble but thanks for looking out.. look out for new info Wednesday..

also the big boss read my thread and encouraged me to make new threads with anecdotal evidence but currently all i have is that new female Wii buyers seem to be buying a Wii and Wii Fit together.. i just got 'promoted' to electronics so hopefully i will have more info over the course of time.



"What have i done.? Is it too late to save me from this place? From the depths of the grave? We all are those .. who thought we were brave."

Something to consider is that Wal-Mart doesn't make the majority of their 'console' money from margin. They make their money off of turning the product quickly, and then investing in money markets until nintendo, sony, and microsoft collect their money. A typical contract will come due in net 30 or 45 days, so Wal-mart tries to make sure that electronics move out of stores as quickly as possible. More time with the suppliers money=more time it's invested and making money for them. In this sense, it doesn't make a huge difference if the margin is 4 or 8 percent. They just want product that turns fast.



LustaysTru

Looking forward to updates also looking forward to threads that give soom idea of whos buying what, what selling and how fast though some like to have links so word thead thoughtfully.

DrStepenTColbert

yes you are right the greater the turn over the lower the margin can be though console margins are very low even with high turnover.
Also they would gain some interest from short term money investments I cant remember but there are margin to turn over ratio's that help with price setting.
Thought from mark-up/margins shown in this thread that is not how they the consoles are being priced.