The Price War - Threat or Opportunity?

If you are new to the business world, one of the first assumptions you will make is that the wholesale price is cheaper than the retail price. You assume that any game you see on line or at your local supermarket, should be available from your supplier for less. It would be a fair assumption to make.

If you have contacted any of the larger distributors for a price list, you will have no doubt noticed this is not always the case. You will have noticed that some high street stores, supermarkets and more recently, on-line retailers are selling particular titles for less than you can buy them for wholesale.

You would also be right in thinking that the profits on brand new games are almost non-existent especially if you are trying to sell them on line. Not just because the wholesale prices are too close to RRP but because of the competitive nature of the industry. So what can you do when your competitors are selling games for less than you can buy them for? Well my advice would be BUY THEM, wait for the offer to end and put them out on sale. It’s a system that works on any level. Even if you are thinking about selling on eBay, you can simply compare the lowest prices on the retail sites with the highest price that item sold for in the completed listings. Sometimes, the difference in price can be significantly large enabling savvy entrepreneurs to capitalize on this and earn maximum profit. More than you would if you were to buy wholesale and more than the retailer you are buying from.

The obvious downside to this is because you are buying from a retailer and not a wholesaler, there are often limits on the amount you are allowed to buy. It’s also worth remembering that these deals sell out quick and the offers will only be available for a limited time.

However the pros can far outweigh the cons. It takes very little time to search (if you are a member of gameassassin you can find games to sell in minutes), there is no minimum order value so you don’t need a huge amount of capital and all of the major on line retailers offer free delivery within the UK. With a little research you will have all the tools you need to generate a healthy part-time living.

Craig Chadwick

Craig Chadwick has had almost 10 years experience in independent video games retail, from market trading to retailing to selling on the minefield that is eBay. He has also spent some time working for a high street retailer as a training manager before the company collapsed in 2008. Since then he has spent his time working on launching a new independent retail chain. Craig is also a partner in PGC Enterprises, a new on line Entrepreneurial Media Company. Their first project is www.gamefox.co.uk a new on line trade magazine for anyone who wished to enter the lucrative video games market.