Circuit City Exploring DVD Pricing?

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

 

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,

 

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!