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A Retail Perspective on the Format War

Jeff Kleist of The Digital Bits writes, "As the high-definition format war rages on, one thing I keep hearing over and over in various interviews and discussion forums is the phrase "let the consumer decide." But that's actually more of a marketing term than an actual practice or truth when it comes to the retail industry. As a former video buyer for a chain of audio/video media stores that catered to enthusiasts, I hope I can provide a unique perspective on this notion that hasn't had a lot of discussion thus far."

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chfthnder263303d ago

this guy really doesnt make n e sense what so ever u mean to tell me that retailers would rather sale i unit of a product than 4 or 5 like he said thats retarded he obviously doesnt know n e thing about retail cuz it is not how much profit u can make up front its about the long term profit like with those 5 hd players u will have 5 customers coming back to buy more movies than just that 1 bluray customer this guy really needs to stop hating hddvd isnt going n e where n e time soon i know at he best buy in my city they have three hddvd displays and like two blu ray and 1 of the hddvd displays is in the home theatre section where they have the sofas and loud ass speakers and they always have the hddvd movies playing in it so it depends on where your at

tethered3303d ago (Edited 3303d ago )

What did you just say? lol

Try punctuation marks and proper spelling next time.
Thank you.

Also, I think you need to read it over again.

marinelife93303d ago

Stating in your post that this guy doesn't make any sense is what we call irony.

Boink3302d ago

......,,,,,,,

/\
try using some of these next time.

godofthunder103302d ago

i think that hd dvd and br have damn good pictures but if they don't grab more then %1 of all dvd sales this year then they both will fell.
neither company can keep making br or hd dvd disc year after year loseing all the money that they are losing now,neither one has the money that microsoft have to keep loseing money,on top of that the new dvd format is supose to be out by the end of this year or next and they said that the disc have every thing that br and hd dvd have now but it's cheaper to make and they will be able to sell them almost the same price as regular dvds and if that happens then br and hd dvd can kiss their a** goodbuy.any one with common since can see that neither one is selling worth a sh*t,hell they didn't even make a dent in the rugular dvd sales and they been out almost a year.

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mrroy3303d ago

I am curious to know what his Retail experience is: Ma and Pa stores or the big chains. The big chains in retail buy pallets of these players from the manufacturer and store them at a warehouse. And when they ship stock to their stores when the stores stock falls below minimum. When they ship to the stores, they ship a truckload(s) of misc stock to fill the shelves. They don't ship onesy-twosy's for normal stock. The Ma and Pa stores do.

marinelife93303d ago

Either way the basic principles are still the same. No matter how big your warehouses are and how efficient your logistics are you still are dealing with finite space, insurance, loan interest, employee wages and benefits, expenses, energy cost, etc.

One pallet of goods that will net you the same amount of profit as four pallets of goods is always the smart way to go.

Dlacy13g3302d ago

that was the profit margin item.

"1 Blu-ray player a week with a $150 profit margin (35% is standard markup at retail)" While his theory holds some water from the outside.

What he fails to point out is attach rates and how a company like Best Buy, Walmart, etc... are very interested in that since they sell both hardware and software. People who buy these players also tend to buy movies at the time of purchase as well as future purchases.

So now if we look at his model and assume a person buying a player will buy 2 movies when purchasing...I think thats a pretty safe bet. You know have the following: 1 blu ray player & 2 movies or 5 HD-DVD's and 10 movies sold. The store is moving more units and ultimately now has 1 possible repeat blu ray movie buyer vs 5 possible repeat HD-DVD movie buyers.

Stores like Best Buy are much more about volume than they are about quality of one sale...especially in an area such as movie/software sales. So while the principles of distribution & sales of a Ma Pa shop might seem the same as a large retailer...they are not. And you also need to factor in manufacturer rebates that the public does not see which make the profit margins skewed as well...which btw...a Ma Pa shop would not get....not like a Best Buy.

crck3302d ago

Toshiba finally raises the white flag. There's a reason Pioneer, LG, Samsung, Panasonic etc don't make hd-dvd players. The prices have dropped so much there's no money in it for them.

PMR_213302d ago

is Victorious

nuff said

chfthnder263302d ago

i noticed how 5 people disagreed with me but none of them said y they disagree all they said was how my punctuation was messed up but couldnt comment on wut i actually wrote

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