Monday, August 24, 2009

Three Things I Never Thought I'd Learn Selling Video Games

1) Used Games Are Where The Money Is.
Our store makes anywhere between $1-$2 on the sale of a new game, and maybe $10-$20 on new systems. With margins like that, if we only sold new product, we'd be out of business. In contrast, a used game tends to have 33% to 50% margin, sometimes even higher. For example, inFamous trades in for roughly $40. That's $40 of credit we give to the person trading in the game towards any other purchase in our store. We then turn around and sell the used inFamous for $64.99, making $25. The best are the old PS2 games. Most of them trade in for $1, and we sell them used for $14.99. The profit margin from used games keeps us in business, period.

2. The XBox 360 Failure Rate Is As Bad As They Say It Is.
We sell refurbished XBox 360 units in my store for cheap. Every time I get one in stock, it is almost always set aside for a customer (or employee) in desparate need of a replacement unit for a defective 360. Almost always.

3. There Are A Lot Of Bad Parents Out There.
I've seen parents tell their kids that they are not buying them an M-rated game, only to have that kid argue, plead, or convince them to buy it for them. My favourite was one mother who refused to buy Grand Theft Auto: San Andreas for her twelve-year-old son after I told her that it contained violence, blood & gore, bad language, use of drugs, sexual themes, and partial nudity. The kid looked at her and said "if you don't buy it for me, I'll buy it somewhere else." The mother caved instantly and bought him the game. Never mind the parents who leave their kids unattended in the store for hours, never mind the parents who let their kids tear my store apart; the ones who let their children dictate their purchases absolutely disgust me. You cannot expect anyone to respect you if you cave in to pressure so easily, especially your own children.

1 comment:

  1. $10-20 on new systems? LOL Try losing/breaking even on every one sold :P

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