Wholesale pricing of movie DVD's? at DVinfo.net

Greg Quinn · July 16th, 2009, 09:26 AM

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

Andrew Smith · July 16th, 2009, 06:29 PM

I think retail usually works on a 30% margin at the store (generally speaking).

Distributors and what they want are another matter.

Andrew

Tripp Woelfel · July 16th, 2009, 07:02 PM

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.

Greg Quinn · July 17th, 2009, 09:42 AM

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.

Jim Andrada · July 18th, 2009, 07:48 PM

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%)

July 16th, 2009, 09:26 AM	#1
Greg Quinn Major Player Join Date: Oct 2006 Location: San Diego, California Posts: 505	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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July 16th, 2009, 06:29 PM	#2
Andrew Smith Equal Opportunity Offender Join Date: Feb 2009 Location: Brisbane, Australia Posts: 3,015	I think retail usually works on a 30% margin at the store (generally speaking). Distributors and what they want are another matter. Andrew

July 16th, 2009, 07:02 PM	#3
Tripp Woelfel Trustee Join Date: Jan 2008 Location: North Conway, NH Posts: 1,745	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.

July 17th, 2009, 09:42 AM	#4
Greg Quinn Major Player Join Date: Oct 2006 Location: San Diego, California Posts: 505	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.

July 18th, 2009, 07:48 PM	#5
Jim Andrada Inner Circle Join Date: Feb 2007 Location: Tucson AZ Posts: 2,211	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%)