Why don't video rental stores buy VHS and DVD from places like Suncoast and Best Buy?

Discussion in 'Archived Threads 2001-2004' started by StephenA, Jan 13, 2002.

  1. StephenA

    StephenA Screenwriter

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    Since it's so expensive for the places(especially mom and pop stores) to get them, why don't they go to places like Best Buy or Suncoast and buy a bunch of movies? Are they not allowed to? Or do they and I just don't realize it? It's what I'd do if I started a rental store.
     
  2. Brian Kidd

    Brian Kidd Screenwriter
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    Actually, video stores buy their stuff from wholesalers that are still cheaper than what they would pay at someplace like Best Buy.
     
  3. CaptDS9E

    CaptDS9E Cinematographer

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    Actually rental places buy VHS tapes at very high prices since they come out for rental way before they are available to the public in stores. My aunt used to get a catalog from a video distributor. New VHS tapes were like $95 a pop. With dvd's since they come out to consumers right away the dvd's arent as expensive. They probably make a lot more money on DVD's then they did on vhs

    capt
     
  4. Chad R

    Chad R Cinematographer

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    DVD's they do. Most distributors will give stores their wholesale prices based on the volume that they order from the distributor. So a place like Best Buy will get a much deeper discount on DVD's than a Mom and pop store.

    My store does buy the majority of our new release DVD's from whomever offers the best deal that week, Best Buy, Circuit City or Costco (suncoast is never competitive). On average we can save $2 to $3 per copy, which can add up pretty quickly on a major title like 'Fast and the Furious'. Or this week 'American Pie 2' will be $16.99 at Circuit City, our old distributor (whom we no longer deal with) would have charged us around $18.49. We'll probably end up with 20 copies so that's a savings of $30.

    Not to mention it makes it easier to tailor our first weekend's movies to the traffic. There's no more predicting because if we're running low, we can run out and pick up more. If we initially pick up too many, we can return them no hassle. At our old distributor we could only return %10 of our total ordered dollar every quarter. We used to get stuck with a lot of product we couldn't move.

    And from my understanding, we're not the only independent doing this. Best Buy et al doesn't care because their daily figures are high.

    VHS is a different animal due to rental pricing and profit sharing. By the time a Best Buy or Suncoast gets a title on VHS it's been available for several months at rental. But we don't have to worry about that since we don't deal in VHS, just DVD.
     
  5. Brett Hancock

    Brett Hancock Supporting Actor

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    My local video store is going to switch to all DVD on New Releases when they move up the street next week. I have noticed on a few new releases that they bought them from Costco or Best Buy.
     
  6. David Lambert

    David Lambert Executive Producer

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    I often am at Best Buy or similar store with deep discounts and see video store owners from smaller rural towns come in and pick up a bunch of whatever new item is on sale that week, or a bunch of marked-down items. It's fairly routine in Memphis.
    Once I was "doing the rounds", and I ran into the same guy and three of the five stores I hit. Each time he had a huge stack of different titles. "Stocking up" [​IMG]
     

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