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Thread
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$7.99 at Target?
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07-04-2008, 12:41 PM
Kaisugi
487121987219863.2
Join Date: Apr 2008
Location: The parade grounds of electric dreams
Posts: 2,117
(Please don't nit pick my numbers, they are only rough and for the sake of discussion ;) ok?)
Doesn't it make your head spin? If they had enough supply to keep items in stock they would make more money at lower prices. If you sell 10 figures at $7.99 once a month you take in $79.99. That's about as often as I ever saw a restock at Target, and about as many figures. At a normal retail mark up of 40% above wholesale you have a profit before expenses of $32.
But if you could maintain stock, reorder often, and sell 100 figures in a month at $5.99 then you take in $599. Again, at a 40% mark up that's a profit before expenses of $239.60.
The old standard of Volume, Low Prices and Volume! So by raising prices, and keeping stock limited to a trickle, what do they hope to accomplish? Maybe they have no plans to increase supply so they have to drive up the price to milk as much as they can. I can only assume that Target, being a mega-company, gets a better wholesale rate than 40% anyway so it makes even less sense. Either way, we're stuck with it.
I won't buy at Walmart, they are a pretty damned disgusting company in my opinion. They're building one near my house here. I will be able to throw rocks at it from my driveway. Damnit. But I still won't be shopping there. I'll drive 10 miles to Meijer instead.
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