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Old July 16th, 2009, 10:26 AM   #1
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Wholesale pricing of movie DVD's?

I know there's a wide latitude of pricing for DVD's (most of it relating to what's negotiated), but is there a rule of thumb for wholesale pricing of DVD movies in comparison to the suggested retail price?

Greg
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Old July 16th, 2009, 07:29 PM   #2
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I think retail usually works on a 30% margin at the store (generally speaking).

Distributors and what they want are another matter.

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Old July 16th, 2009, 08:02 PM   #3
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30-35% makes sense for neighborhood retailers. Big box stores are less. The exact value will vary based on the volume you expect to do, especially for big box stores. When they think volume, they think tens and hundreds of thousands.
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Old July 17th, 2009, 10:42 AM   #4
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Thanks guys, I appreciate the input. Thinking about shipping to the big outlets such as Walmart or Target is beyond our scope - large outlets are only going to deal with one or two major DVD distributors and I would guess that it would be difficult to get into that chain. But there's certainly an opening in smaller outlets, so it's useful to have an idea of margins.
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Old July 18th, 2009, 08:48 PM   #5
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Typically markup is calculated as a percentage of sales price, not an add on percentage of cost.

ie, 35% would be 35% of sales price, or 1/(1-.35) of cost. (about 54%)
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