Why does Costco sell multiple DVD packs? (1 Viewer)

[Dennis Nicholls]

Costco (and perhaps other mass marketers) sells many DVDs in plastic packages, two or more "unrelated" DVDs per package. Why do they do this? I could understand if they packaged a "turkey" with a good film: this would give them more sales of the turkey. But the other day I picked up a package with two of Fox's war films in it, Von Ryan's Express and Twelve O'clock High, for $24. Each of these is a first rate film on its own merits. To get them for $12 each is a deal, as they sell on-line for at least $14 each. Costco could have just set them out individually and charged $14 or $15 for them. And the use of the plastic packages greatly increases the floor space required: these are those large hard-plastic jobs measuring about 12" by 18" and approx. 5" deep. What's the marketing advantage of Costco's doing this?

 

[Allen Hirsch]

Dennis,

I've wondered about that, too.

I think it's in keeping with their "large quantities" packaging on almost all the goods they sell (have you seen some of the sizes of food packages??). It somehow seems "special", or maybe even "exclusive" to have bundles like that, especially if you can't get it anywhere else.

 

[David Lambert]

Well, the oversize packaging that's hard as hell to get into is part of their security measures. They don't use electronic tag-reading equipment at the doors becaue that would be overhead money they must spend, which would affect their warehouse pricing scheme. So for these multi-disc items the studios are encouraged by Costco to put them in a display that is attractive and promotional but can't be openned too easily or stealthily in their stores, nor can be easily hidden in clothes or among other goods being bought.

As for the reason behind the multi-packs in the first place (noone else sells a 3-pack of the animated LotR films, or a 5-pack of the first five SuperBit titles, right?): Well, it IS part of their "warehouse bargain" philosophy. Many of the 2-packs are available elsewhere: The set for Unbreakable/Sixth Sense, for example.

Other 2-packs are a result probably of Costco striking a deal to help the studio reduce stock at a "bargain" price without forcing the studio to take a general markdown on the existing SKUs. For instance, maybe Paramount is overstocked on a pair of John Wayne titles like El Dorado and True Grit. Instead of marking these $24.99 SRP titles down to $19.99 overall, so they sell for $14.99 everywhere, they instead pack the excess stock into hard plastic bubble-packs, mark this new SKU at $29.99 sell-through price, and put them in Costco stores. Then David Lambert in Memphis, TN picks it up and is impressed with Costco for providing him with a hell of a bargain! Everyone wins, except for non-Costco members.

And that's the point, isn't it?

 

[Jon_Are]

I take it, Dennnis, that you've never purchased the Costco 5-gallon vat of jalapeno peppers.
Jon

 

[Eric Huffstutler]

I know that Wal-Mart is doing the same thing but believe it is a special promotion through Warner Brothers?
I think Warner is purging a lot of its old slow selling first release DVD's from around 1997 and packaging them up like 2 for $14.99. At least here in Virginia and West Virginia they are doing that.
Of course most all the titles are P&S so go figure???

 

[Lance Nichols]

Costco = Bulk purchases
It's obvious they want us to buy bulk DVDs

 

[Rob T]

The good thing about buying stuff from costco is that you save money when you buy a product in bulk. They're just trying to apply this to DVDs.

 

[Shelby]

I'm finding good deals on dvd concerts also, I picked up Elton John's Greatest Hits in DTS for 21.00 canadian...Pretty good deal.

Cheers

 

[Steve Kramzer]

Most of those package deals don't look so great, but the best has to be Rushmore:Criterion Collection/High Fidelity 2 pack I got at Sam's Club for 28 bux...hell I usually see Rushmore Criterino itself for more than that

 

[Tom Ryan]

Steve, are you sure that Rushmore is a CC? I've looked at that package before and I thought it was the original non-CC edition.

-Tom

 

[Butch C]

I see those 2 packs everywhere in NY, just not in the huge platsic cases Costco has...I dont know how your Costco is but mine (New Rochelle) sells about 25 movies tops..you can find other titles dispersed throught the pile but it usually is a few new releases

i.e 7 CASES of the fast and the furious.

The Multipacks usually have One good movie and one piece of crap

 

[Steve Kramzer]

Ive seen this package twice, once at Borders and once at Sam's Club, and both have had the criterion edition. I'm pretty sure its the criterion ed since I'm holding this one in my hands atm

 

[Jason Merrick]

I take it, Dennnis, that you've never purchased the Costco 5-gallon vat of jalapeno peppers.

Not to mention the keg of mustard on aisle 5.
You haven't had mustard, until you've had it on tap!

 

[Dennis Nicholls]

Oh man but I've bought the 5 gallon jar of sauerkraut. Makes me want to grab my Mauser and defend the fatherland.....

 

[David Lambert]

Y'know, that stuff's not just at CostCo anymore. Everytime we go to Wal-Mart, if we get any groceries that is, we always pass this aisle that has these sort of huge-condiment and huge-food-staple jars or cans right at the end of the bread aisle. The one closest to where we pass is a giant can of baked beans. I ALWAYS start in with the Blazing Saddles jokes when we walk by!

 

[MikeAW]

To me, the DVD companies use those multi-some time "theme" packs, to "pump up" those DVD sales numbers, by giving the customers more bang for their buck. After all it is COSTCO.

The best one I saw there for sale was the "War" 5 DVD pack..."Thin Red Line", "Tora, Tora, Tora", "Midway",

"Patton"...2DVD set. Not bad for $65.00 !

 

[John P Grosskopf]

I'd be happy if they carried the Tomstone Director's cut or the widescreen uncut Amarican Pie 2.

Costco lost business from me this week by not carrying either, as I had to go elsewhere. i know it's a bithc to carry dual inventory of the same title, but not doing so aids Costco's rivals by sending their customers to other retailers.

 

[Eric_R_C]

Here's another reason why you see these movies packed together: It's to get rid of old versions of remastered DVD's. Here are some examples that I've noticed:
*Unbreakable/Sixth Sense=Sixth sense is now a 2-disc Vista DVD Ala Unbreakable and Tombstone
*Tombstone/Sixth Sense=same thing, Tombstone is remastered special edition now
*5 pack of X-men/Fight Club/Predator(DTS)/Speed/True Lies= True Lies will definitely be a 5-Star edition, and Speed may become one as well
*Alien Legacy=There's been a few rumors that Alien will be remastered for 25th anniversary, hopefully with the second disc that you could order with the 20th anniversary pack (but they didn't make enough)
*The Mummy/Tremors=The Mummy later came out as the Ultimate Edition
Of course this is not always the case, but every so often I see one of these packs, and I know one of the two is being remastered. In fact, I've been scared to buy the 12 Monkeys/The Jackal set because I've heard rumors that 12 Monkeys might be remastered

 

[David Lambert]

True Lies will definitely be a 5-Star edition, and Speed may become one as well

Actually, the producer of the Speed 5-Star Edition (Charlie is his first name, and I won't attempt to spell his last name, but he's also working on the discs for Blade Runner SE, Legend, and Black Hawk Down) has posted a note that the new discs for Speed are "done".
On the other hand, I don't recall if it was Charlie or someone else who posted that the True Lies 5-Star Edition was going to be put off for a while yet because it was still too close to the events of 9/11.
Do a search and you'll find both of these threads!
Otherwise, you're right in that this is an excellent way to "take out the trash", whether the trash be old versions that have been updated or are about to be, or discs that plain just never sold well to begin with and could use a boost. Pairing them with desirable titles and making the 2-pack cheap is a great way to do it. An example of the latter is "Sister Act 2 isn't selling well? Let's release the original Sister Act, but the first week it's out we'll pair it with it's lackluster sequel and see how many 2-packs we can sell!". It works...we bought it here! BUT, my wife LIKES the sequel!

 

[Stephen L]

My wife flipped when she saw The Father of the Bride / Father of the Bride 2 two pack in Costco. Seems like unless BestBuy has a great seal going its always Costco for new releases as the days of online deals(last on I got was the 800.com Bond boxset)are ancient history.