Circuit City Exploring DVD Pricing?

Discussion in 'DVD Video' started by (PeteCresswell), Mar 18, 2006.

  1. Anybody else noticed that the price of DVDs in the "Bargain Bin" at their local
    Circuit City has been fluctuating over the past few months?

    I've seen it move between $6.99 and $10.00.

    I'm wondering if somebody is exploring the price limits of impulse purchase or
    something like that.
    --
    PeteCresswell
     
    (PeteCresswell), Mar 18, 2006
    #1
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  2. (PeteCresswell)

    Guest Guest

    "(PeteCresswell)" <> wrote in message
    news:p...
    > Anybody else noticed that the price of DVDs in the "Bargain Bin" at their
    > local
    > Circuit City has been fluctuating over the past few months?
    >
    > I've seen it move between $6.99 and $10.00.
    >
    > I'm wondering if somebody is exploring the price limits of impulse
    > purchase or
    > something like that.


    I wouldn't be at all surprised if what you suggest is true. Exploring
    profit v. price is a common subject of study. I've seen curves that plot
    the total dollars of profit against the price of the goods. As you might
    expect, increasing the price decreases sales, but it may still result in
    higher total profit dollars. At some price, the manufacturer (or retailer)
    will make the most money. Most companies set the price above the peak
    return, since it reduces inventory risks, and it leaves plenty of room for
    markdowns.

    I have mixed feelings about this process, since it fails to take into
    account the value of providing many more people with the enjoyment of the
    product.

    Norm Strong
     
    Guest, Mar 18, 2006
    #2
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  3. On Sat, 18 Mar 2006 12:00:18 -0500, "(PeteCresswell)" <>
    wrote:

    >Anybody else noticed that the price of DVDs in the "Bargain Bin" at their local
    >Circuit City has been fluctuating over the past few months?
    >
    >I've seen it move between $6.99 and $10.00.
    >
    >I'm wondering if somebody is exploring the price limits of impulse purchase or
    >something like that.


    Well the discs in that bin are usually $1 to $2 cheaper at the Walmart
    bin.
    I think it has more to do with the titles going OOP (out of print).
    In the days of vinyl records Before CDs and Compact Cassette tape,
    When albums went OOP they were dumped at very low prices. ranging from
    25 cents to 99 cents. These albums would have the corner cut off of
    the cover or a small hole punched in the corner. This was so they
    could not be returned for full price. They were called cutouts. I
    beleve that the DVDs in the bins are the new cutouts. Some going OOP
    for good, others being replaced by newer Collectors editions . Also
    keep in mind that if the title goes OOP and is replaced with a newer
    format HD DVD or Bluray DVD it will help to drive the purchase of the
    newer players.
    Just a thought,
     
    Fred C. Dobbs, Mar 19, 2006
    #3
  4. (PeteCresswell)

    Guest

    (PeteCresswell) wrote:
    > Anybody else noticed that the price of DVDs in the "Bargain Bin" at their local
    > Circuit City has been fluctuating over the past few months?
    >
    > I've seen it move between $6.99 and $10.00.
    >
    > I'm wondering if somebody is exploring the price limits of impulse purchase or
    > something like that.
    > --
    > PeteCresswell


    Remember they have tons of new stuff coming out every week now (heck
    just look in the CC coming soon section)so most likely it is just a
    standard discount off the sticker price in order to make room for new
    stock, like say for example if the dvd went for $14.99 they chop off
    $5.00 and throw it in the bin for $9.99, and if it then stays in the
    bin for that price then maybe 5 weeks later they chop off maybe another
    $3.00 and sell it for $6.99 until it is gone!
     
    , Mar 20, 2006
    #4
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