24 hour Nintendo spectacular at GAME on 24 July

Softstuff

cmjohnson_86 wrote:

Gamestation may be different to Game. I KNOW they pay alot less than that.

Well, in that case then they're doing something very special, more so than any other electrical retailer, and selling goods at more than 100% mark up.
Truly incredible since there are very very few items sold of any variety with that kind of mark up.

ehosin

Softstuff wrote:

Hmm, not sure. But I wouldn't take it back even if you didn't want it. Given that you could sell it for at least 75 quid within a week.

Hehe, where are you? wanna swap for a black?

Yeah I could sell it on via eBay or something...although I dont want the hassle of ebay fees, paypal fees, then risk a buyer making a chargeback or filing an unreceived item complaint... etc etc. Because every other high value item ive sold on eBay has ended in tears. well...not literally...but...you know what I mean

oh, and, i'm in London

cmjohnson_86

Well as an example of company/business's selling for so much profit, heres one,

I work as a chef for a restaurant and when we make new meals, were not allowed to put a meal on our menu unless its ATLEAST at a 80% profit margin per meal.

I know this is a completely different industry but its an example of profit margins business have to make.

smashed

Mate, I am afraid that others are correct. Consoles do not make money for the stores, hence why they try bundles to make money. I guarantee you that no games company will be getting a DS for below £70. Add to that, GAME will get a better price than Gamestation.
Profit margin is totally different for food. Burger King can make a large coke (including straw and cup for 1.8p). The cost is in wages and overheads etc. The most expensive pizza hut costs £1 to make, but sells for £15.
Consoles are expensive to make, with good hardware. The games are the good profit margin (Games are cheap to make , but its the R&D that costs money).

ehosin

oooooo i'm liking all this "insider" talk

tin

24 HOUR NINTENDO SPE sold out

NiggyG

But that’s slightly different because they are also paying for gas, electric, your wages etc...

The same could be argued for software sellers but I’d say there expenses are less in relative terms.

Anyway this is off topic... I've just added my card details to my account in preperation for the next 'hour' - I've a feeling the best has been and gone though.

Softstuff

cmjohnson_86 wrote:

Well as an example of company/business's selling for so much profit, heres one,

I work as a chef for a restaurant and when we make new meals, were not allowed to put a meal on our menu unless its ATLEAST at a 80% profit margin per meal.

Yes, I'm not surprised in the least. The hospitality market aims for at least a 75% mark up for everything. That is because you're paying predominantly for a service, not for the product itself.

When you visit somewhere such as birthdays, you'd be interested to know that cards are also given about a 70-80% profit margin, yet gifts, balloons and party goods achieve about a 30-40% profit margin.

Unfortunately... or fortunately for the consumer, with consumer electronics, white goods and so forth the mark up is considerably lower than on food in a restaurant, this is why they push for extended warranties and add ons which *do* have an incredibly high mark up.

Not trying to be argumentative, but my degree is in part in business economics and marketing, so profit margins are something I am very familiar with

cmjohnson_86

Yeah but big companys buy so many of one item, they get it cheaper the more they buy. Game HQ would probably order a million consoles at once, and you think they'l pay £70 each? I think not.

Greensprout

They make little if any profit..

That is a fact, I don't know why your so adamant they make so much money from them.