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TOPIC: DVD Sales

DVD Sales 18 Nov 2007 03:13 #16764

  • ceres
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Hello,

We are interested in supplementing our theater and flea market sales with DVD sales. Where would we buy DVD wholesale, and are DVDs sold to all retailers at the same price, regardless of the retailers order size?

Thanks.
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Re: DVD Sales 18 Nov 2007 11:52 #16765

  • rufusjack
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I have owned video stores for over 15 years. Trying to compete in the new dvd sales market is extremely tough. Wal-Mart and the other box stores will sell the mewest movies at a loss in order to generate store traffic.

We go after the used market where we can buy/sell/trade. We can make 50% gross margins on that product.

IMO, stay away.
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Re: DVD Sales 18 Nov 2007 14:42 #16766

  • ceres
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That is mostly what I was thinking. But if I am still curious about getting pricing information, do you know who the best people are to contact?
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Re: DVD Sales 19 Nov 2007 01:49 #16767

  • wimovieman
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Finding a distributor that could give you decent pricing is not going to be easy. I did a few year stint with the largest distributor in the world, but they only do the big box stores--pretty much any big box you can name--the funny thing that I noticed was how a few of the big names had no problem selling the product between 1 and 2 dollars less per item than we were selling to them. Even the ones that made a profit on a sale were only making a couple of a percent. Much of the music/dvd departments are used as loss leaders. I believe this is the reason you never really see mom and pop music and video retail stores.
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Re: DVD Sales 19 Nov 2007 10:35 #16768

i also work in the music biz. a lot of the indie record stores actually go buy boxes of product from places like target and wal-mart the first week because they can get the CDs cheaper there than from their distributors - then they re-sell them in their own stores for a normal mark up.

and people wonder why the music industry is so messed up.
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Re: DVD Sales 19 Nov 2007 16:53 #16769

  • Mike
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that's first run dvd you are all speaking of. But there's a billion sources for stuff that's a bit later on the market and people do buy the stuff. But most idle shoppers are only looking for the oddball and the cheap. Mike

Michael Hurley
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Re: DVD Sales 19 Nov 2007 19:30 #16770

  • markegge
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Sounds like an idea that I would be wary of ... my humble opinion, of course!

1) You run the risk of "muddying" your business with a side-business. Consumers like large get-everything-at-once discount stores, but tend not to respond favorably to two businesses operating in the same location.

2) Unless you're in a very small town with only one or two other competitors, the potential for profit is quite small ... especially when juxtaposed to the cost requirements, in terms of management, space, inventory management, etc.

Edit:
And 3) The industry is in decline right now. Distribution mediums are changing. It's not yet, but the DVD is likely to become increasingly obsolete. Until the HD/Blu-Ray debate is settled, the overhead for selling a decent selection of DVDs is going to be quite high (having a triply redundant stock of popular movies on DVD, HD-DVD and Blu-Ray). Moreover, as electronic distribution methods become more bullet-proof and widely used, the demand for "physical" DVDs is going to dwindle. If you could open up an "iTunes" DVD store, you might be on to something ... but right now is a good time to EXIT the DVD resale industry, not enter. (Again, IMHO).

[This message has been edited by markegge (edited November 19, 2007).]
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