Weekly Roundup 1/21 (1 Viewer)

[Malcolm R]

Hello everyone, just thought I should pass this along, but Walmart has the lowest price (for once) on this DVD at $15.88

Again, though, this is a local price in your local Wal-Mart. Other Wal-Mart stores across the country all have varying prices depending on local market conditions.

 

[Jon_Are]

If a store advertises that they have the "low price" for a DVD...

I think the distinction, Bill, is that the ads never read THE low price, just low price. I don't think this is at all misleading on Target's part.
And get off David's back; he's had a hard day.
Anyway...does anyone know if Costco's prices - like Sam's Club - are stable? Will the Fox Classics remain $12.99 as long as they're in stock?
Jon

 

[george kaplan]

While I'm sure that Target is legally not promising the lowest price, let's not kid ourselves. They are marketing it with spin to make you think it's the lowest price (so low, they can't even put the price down). And obviously it works, since many of us (including myself) think (or in my case, used to think) that it implied just that. As David said, they may not think it means lowest price, but they know very well that they want you to think it.

 

[Jon_Are]

You're probably right, George. But speaking for myself, I've never interpreted the phrase "low price" as implying that it's the lowest price available. Rather, I've always thought that they wanted the consumer to believe that the price was so low, they can't or won't print it. I know this is a fine distinction, but a distinction nonetheless.
So, I don't necessarily think Target is being misleading; one could argue that $16.99 is a (not the) low price (as compared with MSRP).
In either case, we can probably agree that it's all total marketing B.S., aimed at luring the consumer into the store and pillaging his wallet.
Jon

 

[Joel Vardy]

In either case, we can probably agree that it's all total marketing B.S., aimed at luring the consumer into the store and pillaging his wallet.

I have to come to Dave's defense here (not that he needs it). 'Low Price' is just a way to make last minute decisions on a price that will be competitive based on local (or national) circumstances. Wal*Mart waits to make a 'local' decision in order to not 'leave money on the table'. The game these retailers play is not to win each and every loss leader opportunity but to keep the consumer feeling that their prices are consistently competitive in order to keep them coming back. I don't quite get this 'attitude' that they owe us a price that will always please us and knock out the competition. I believe we have been spoiled in this respect. That game has proven to be a way to "lose" (remember DVD Express vs. Buy.com vs. Amazon.com). Who wins when the retailer has to operate with negative margins? We win for awhile until the company goes out of business and the whole industry then raises it's prices. Just look at the airline industry.

The 'loss leader' game of 2002 may be a short term phenomenon just like the 40% discount game was in the '99-'01 period (I think that was the period). Eventually the thin margins are stabilized and everyone is forced to play by the same rules. Market share is seemingly established (though that may not be true nowadays -- consumers tend to be more fickle today) and everyone behaves by habit rather than evaluating every item's price. Grocery stores operate on that principle I believe. Dave, you can correct me if I'm wrong (I don't have the retail experience you have -- though indirectly I have been involved as well).

Joel

 

[Patrick Sun]

Also remember that Target stores don't price match their competition anymore (it's a "like it or lump it" attitude from their management), so to expect them to automatically have the lowest price on anything labelled as "low price" in their ads is just a recipe for personal disappointment.

 

[Joel Vardy]

I believe that 'Educating Rita' was due this week as well. Has this title been pushed out?

Joel

 

[GlennH]

There's discussion about Educating Rita in this thread at DVDTalk forum. Looks like it may be cancelled for now?

 

[David Lambert]

Jon_Are, I've never seen Costco or Sam's ever "raise the price" on a DVD release. They just stop carrying it after a while.
I meant to mention about Educating Rita. I haven't read the DVDTalk thread at the provided link yet (I'll check it later), but I had noticed that Columbia removed it entirely from their press materials database. This usually means "postponed indefinately". Sorry, for fans of that one.
As for Joel's "defense", I think he essentially hits the high points. And George has a point, in that they would hope you would take it to mean more than they say.
But let's not be too naive here. In my humble opinion, I think that anyone who EVER reads an ad for any given retailer and believes that they really have the lowest price possible, without the retailer naming the price and the consumer doing comparisons on their own, must be categorized in with this guy:
Chains and studios have been hurt by the "$15 new release" mentality in 2002, that I think culminated in the $10 SW:Ep2-AotC pricing. An editorial by Joan Villa of Video Store Magazine hits the nail on the head in discussing this (it's a great read). Consumers like us love the low pricing, but Villa makes an easy connection to this strategy at Warner and their low profits at the same time. Is it any wonder that the originator of that strategy - the "father of DVD" - got the boot recently? All he was pushing was lower and lower sell-through pricing, and that obviously didn't bring in profit...just revenue. Profit is king, and I really, truly believe that price hikes are coming on DVD.
Many of us at HTF (me included) have criticized Paramount for their prices, compared to the rest of the industry. Martin Blythe came on this forum and mentioned that his division exceeded all of their financial goals last year. This won't be lost on the other studios, whether they read it here or "hear it through the grapevine". Any way you look at, what we find "bad" about Paramount's pricing right now, has a very REAL chance of becoming the norm...sooner than you think!
At that time, when the Roundup is needed more than ever, I will likely drop out of the picture. I can't afford to buy DVDs at that point (I'm already in too much debt, and have to cut back, as I've noted in a few posts...no DS9 for me!), and there's no point in me doing the Roundup for free. I'm not affiliated with HTF in any way, shape, or form...except as a member, same as y'all (except for Patrick, of course! ). I just post what I feel like posting, like anyone else does. And if I'm not using the Roundup data for myself, I certainly won't spend a coupla hours a week doing it out of the goodness of my heart.

 

[Malcolm R]

Case in point, I just stopped at my local Wal-Mart which is the only big chain store within 40 miles. The Bourne Identity was priced at $19.87. :rolleyes
Around here, it would actually have been cheaper at FYE using their "stock-up sale." By using their $3 off 2 deal, I could have got both The Bourne Identity and Barbershop (which I'd also like) for $18.49 each.
But, I'm hoping to get to Costco or Best Buy this weekend. :wink:

 

[Joel Vardy]

Thanks, Glenn, for the Educating Rita link. "non-anamorphic" would probably have me pass on it this time anyway. I like the film but with my 16x9 set I don't like the effect that 'zooming' has on the picture quality. Looks like the legal rights has it hung up like many titles (Grease, BTTF,...) that sit in limbo until things are sorted out.
Joel

 

[Bill Balcziak]

Educating Rita was one of my top "where the heck is it?!" titles. I'm disappointed to see it go on hold again.

 

[DeborahK]

Dave,

Such a wise post about the often unrealistic price of DVDs and its effect on both the industry and the individual (in the form of over-buying). It is so easy to get caught up in the hype surrounding many DVD releases and when the prices are so low to boot, I think it is inevitable that people are tempted to buy everything they want or think they might want. Ah, the perils of the consumer society.

Ever since I joing the HTF, I have marvelled at the sheer quantities of software that people here buy. It was quickly abundantly clear to me that I did not have nearly the discretionary income a lot of you guys have, nor, apparently, anywhere near the storage capacity, or free time to view discs. And I consider this is probably a good thing -- I like to travel light and I am not in debt, save the mortgage on my house.

Like others here, I am an avid reader of your weekly new releases postings and I do buy DVDs, but
not usually on a weekly, or even monthly, basis. Something has to be really, really up there on my list to warrant a buy from me and the longer the format is around, the pickier I get. Where the consumer is concerned, I think this has all been a little like the cheap gasoline we have enjoyed in this country for so long -- people don't think twice about driving every where or buying large, oversized vehicles when the fuel is cheap. Eventually, however, we all have to get real and it loooks like that day may not be far off for the DVD consumer. And maybe that is not such a bad thing.

Deborah

 

[Malcolm R]

Well, my local Movie Gallery just dropped their rental price to $1.99 for 5 nights on everything in the store, probably prepping for the grand opening of the new Blockbuster that's coming soon. So if the studios want to raise prices, I'll be glad to rent more and decrease my purchasing.

My resolution for 2003 is to be debt-free by the end of the year. If the studios want to help me out by pricing me out of the DVD market, so be it.

 

[Mike Frezon]

DeborahK = the voice of reason.

 

[Joel Vardy]

Dave,
I'm somewhat sorry to hear that you don't intend to provide "The Weekly Update" to us for free forever . We are fortunate to be able to avail ourselves of your research and willingness to share your material with the HTF community. I didn't mean to start the discussion/debate about the changing DVD market in order to make us reflect on the transient circumstance of 'aggressive' pricing strategies. But since I opened the can (of worms) it is hard to get those criters back in the box.

It is so easy to get caught up in the hype surrounding many DVD releases and when the prices are so low to boot, I think it is inevitable that people are tempted to buy everything they want or think they might want. Ah, the perils of the consumer society.

Precisely my sentiments. Having built a sizable collection over the last 5 years (~1200) I'm ready to transition to the mode of a purchase every few months of a 'must have title'. It was easy to see everything as collectable while the prices where essentially equivalent to a couple of movie tickets (without the popcorn or the comfort of more comfortable seating arrangements). Like all changes, it is hard to move our well established habits to reflect the changing circumstances. This 'consumer' is going to make the transition before it busts the entertainment budget (not that it hasn't in the past) :b .
Joel

 

[Qui-Gon John]

Dave, ditto, I'd hate to see the Round-Up go away. I would only hope that someone in a position to spend the time on it would step in and fill your, (rather big), shoes! :b

 

[Bill Balcziak]

It was easy to see everything as collectable while the prices where essentially equivalent to a couple of movie tickets

That makes sense as long as you're buying DVDs at the same pace as you would normally go out to see a movie. But since very few of us go to the theater 1200 times over a span of 5 years, I can see why you had a problem. (For those of us with kids, 20 movies in five years is more likely. )