MrAngryFace
Banned
I mean, there's gotta be a catch
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Does TRU take a loss on 3 for 2 deals?
- Thread starter MrAngryFace
- Start date
kitchenmotors
Banned
Sure, but they're getting $100 out of people who normally wouldn't spend that much on one visit, and they're bound to attract shoppers who would normally over look Toys R Us for a Gamestop or EB.
Sometimes you've got to take a loss to make some gains.
Sometimes you've got to take a loss to make some gains.
Naked Snake
Member
I wanted to make a "How can TRU afford the buy 2 get 1 free deal?" thread a while ago, but I'm lazy, thanks MAF.
They probably hold the deal to help make some space for the major holiday releases. Also, since more customers come into the store to buy games, they might end up selling other items such as toys or movies. Besides, if you buy three $50 games, they lost $17 each, but probably still make a decent profit.
The Guivre
Member
Considering TRU is for most people primarily a source of toys rather than Video Games I'd think they're just happy to sell them at all.
kitchenmotors
Banned
Link316 said:
I only go to Toys R Us for this deal. Otherwise I never shop there for games. If this deal wasn't present I would get my games elsewhere. I'm sure it's the same for a lot of people, especially most of the guys on this forum. They got my money, where they normally would not have. This is a gain, even if they are taking a bit of a loss.
It's the same thing with a price drop. A loss is taken to make some gains.
The Guivre
Member
Maybe we're overestimating the cost that TRU is putting into the games they have on the shelves? I'm not an insider or anything like that so I don't honestly know how much it costs TRU to put a game on the shelf. I would assume it's not too close to $50 though.
I think they're breaking even at worst and making about $5 a game at best. TRU buys direct from the publishers and in rather large quantities. That guarantees them a very good price on new product. For one week, they're willing to make that smaller profit per game in order to get people in the store. Most folks will leave with other things too or just remember to check TRU for games in the future. I certainly go there more often since they started this a few years ago. The store here is pretty well run so I can often find some good deals any time of the year and often if everyone else sells out of something, they have it.
Escape Goat
Member
Dont stores have to pay inventory tax like car dealerships? Maybe they're hoping people pick up games that ARE NOT selling.
Hell if I know though.
Hell if I know though.
ravingloon
Member
CVXFREAK said:
They did it one year for the Dreamcast. I remember buying Sega GT, Eco, and hopefully a game I actually liked (Can't remember what it was).
Alcibiades
Member
They do lose money, quite a bit, but it's a sale to attract customers and serve as a reminder for the holidays...
They've had other 3-for-2 deals recently with DVD's and board games...
They didn't have the DVD I wanted in widescreen and didn't have the Lion King 1 1/2 in with the outer sleeve, so I relented, but I was tempted...
They lose money on those also...
They've had other 3-for-2 deals recently with DVD's and board games...
They didn't have the DVD I wanted in widescreen and didn't have the Lion King 1 1/2 in with the outer sleeve, so I relented, but I was tempted...
They lose money on those also...
Actually, they break about even/don't lose anything. A $50 game costs TRU anywhere from $35-$42. But TRU does work out deals with publishers, etc. so TRU does get partially reimbursed for the deal. For the board game deal, TRU doesn't really lose any money. Hasbro basically works out a really good deal with TRU and makes sure that they have ample stock. They even send reps to the stores to make sure everything is set up just right. Hasbro's happy cause they've just moved a ton of product, while TRU is happy that sales shot up. TRU gets almost reimbursed totally for the Hasbro deal, while the video game they do get a break/reimbursed some. Even if they didn't get any help for the buy 2 get 1 free video games, the majority of sales they would lose only about $5-$10(which would add up really quickly, though).
Alcibiades
Member
thanks for the info...
yeah, I was assuming some stuff from working at Best Buy, where the company payed about $40-$43 per game (Madden 2005 got the company a margin of 8.99 I think).
I didn't know TRU made deals with companies, but I guess if the supply is limited enough they work out deals as part of their retailer-publisher agreement...
yeah, I was assuming some stuff from working at Best Buy, where the company payed about $40-$43 per game (Madden 2005 got the company a margin of 8.99 I think).
I didn't know TRU made deals with companies, but I guess if the supply is limited enough they work out deals as part of their retailer-publisher agreement...