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Originally Posted by kRAyZZed
And which wholesale company do you work for? If your talking about the 45% discount i would guess one of the main ones, Pinnacle, Gem or Centersoft (possibly Ideal)?
But i do know for a fact that most wholesalers do NOT give 45% discount to even ppl like Game. Latest release retailing at £39.99 costs even them £25.50 per unit thats 64% and thus a 36% discount on retail for ordering in bulk, add vat to that and you get £29.96 so in actual fact it equates to 25% off the retail... now bear in mind the current trend with most supermarkets and whatnot using the latest games as loss leaders and selling the aforementioned games at £29.99 and making a loss on them to get ppl into their shop - this makes it almost impossible to actually ever sell anything at £39.99 and we ourselves tend to reduce things to £34.99 meaning we only get games at 15% less than retail not 45%..... now bear in mind that 15% is NOT alot to make on a game and as i have shown
incl. vat we pay £29.96 and sell for £34.99 making £5.03 per game we sell. Now work out wages, rates for your shop and all other overheads and your left with a fraction of that as profit... hence why more and more independants are closing down and only the mass chains with their complete lack of any knowledge in the actual industry are the only ones not to struggle...
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yep i can confirm this, because my mate runs a videogame's shop i have seen his invoices and it really is tight for profit margins these days.......
btw Gem are ****e at delivering on time
