Wii U basic $250 Wii U Deluxe $300 at Costco.com

#11RahzarXPosted 1/31/2013 1:15:48 PM
PENDRAG0ON posted...
RahzarX posted...
PENDRAG0ON posted...
RahzarX posted...
PENDRAG0ON posted...
No, I just know how Nintendo operates.


Oh okay I believe you now.


Most companies are easy to read. Especially with how much Nintendo is constantly scrutinized. Their business practices have always been about keeping on good terms with big box retailers, and they have always cut them deals. The 3DS price drop media blitz made this information even easier to find. It also has a lot to do with why Amazon isn't stocking their hardware. (both subjects are something I did a lot of digging to figure out why they had a falling out)


So it shouldn't take a lot for you to understand that a company ALREADY TAKING A LOSS isn't going to risk further loss on a TEMPORARY SALE through costco of all places.

Your knowledge is beyond the reaches of the known universe.


Nintendo is selling to retailers at a $21 loss, meaning that the wholesale price is the price they are taking the loss on, not the retail price. Retailers won't sell hardware like this for a loss, Costco is making a profit still, so the markup is over $50 per unit.


Retailers DO sell hardware like this at a loss. Have you ever worked in a retail store? It sucks but you'll learn a lot about how many things they actually lose money on.
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#12NiftyManZPosted 1/31/2013 1:18:24 PM
Costco sells most things like that cheaper. It's their business...
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#13PendragoonPosted 1/31/2013 1:23:43 PM
RahzarX posted...
PENDRAG0ON posted...


Nintendo is selling to retailers at a $21 loss, meaning that the wholesale price is the price they are taking the loss on, not the retail price. Retailers won't sell hardware like this for a loss, Costco is making a profit still, so the markup is over $50 per unit.


Retailers DO sell hardware like this at a loss. Have you ever worked in a retail store? It sucks but you'll learn a lot about how many things they actually lose money on.


I worked in retail for two years, I was always checking the store markup when I could. The most loss I ever saw was a 3 loss on a $2000 flat screen. Consoles were always sold at a mark up. (aside from a few Black Friday deals which showed zero mark up)
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#14icarus231Posted 1/31/2013 1:25:57 PM
PENDRAG0ON posted...
RahzarX posted...
PENDRAG0ON posted...
RahzarX posted...
PENDRAG0ON posted...
No, I just know how Nintendo operates.


Oh okay I believe you now.


Most companies are easy to read. Especially with how much Nintendo is constantly scrutinized. Their business practices have always been about keeping on good terms with big box retailers, and they have always cut them deals. The 3DS price drop media blitz made this information even easier to find. It also has a lot to do with why Amazon isn't stocking their hardware. (both subjects are something I did a lot of digging to figure out why they had a falling out)


So it shouldn't take a lot for you to understand that a company ALREADY TAKING A LOSS isn't going to risk further loss on a TEMPORARY SALE through costco of all places.

Your knowledge is beyond the reaches of the known universe.


Nintendo is selling to retailers at a $21 loss, meaning that the wholesale price is the price they are taking the loss on, not the retail price. Retailers won't sell hardware like this for a loss, Costco is making a profit still, so the markup is over $50 per unit.


Costco makes less of a profit and Nintendo eats some too, this is how sales work. they make the money up on the additional foot traffic and purchases.
#15PendragoonPosted 1/31/2013 1:36:57 PM
icarus231 posted...

Costco makes less of a profit and Nintendo eats some too, this is how sales work. they make the money up on the additional foot traffic and purchases.


Nintendo would have to approve the price drop and allow it mutually for them to agree to take an even bigger loss. If that was the case other retailers would be doing the same.

Nintendo has nothing to do with this price reduction, they won't risk making Walmart angry with them. (Nintendo allowed Walmart to reduce the price of the 3DS early and keep their margins, this is what made Amazon angry, Nintendo already disliked online only retailers and treated them poorly. This was the final straw) Costco isn't big enough to take that kind of risk on.

Costco's profit margin is likely down to the $20 range at those prices. Requiring a membership to purchase helps them too, odds are several people will buy a membership to get this deal.
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Know Japanese? Post your advice in the topic below!
http://gamefaqs.com/boards/316-gamefaqs-world-japan/63714709
#16gamingman43Posted 1/31/2013 6:25:57 PM
Wow. Retailers have so much excess stock that they gotta drop the price themselves.