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How dumb is my roommate, really? ($25 "wholesale" new ps3 games)

RiusRius Globex CEONobody ever says ItalyRegistered User regular
edited August 2008 in Help / Advice Forum
I mean, seriously. We were talking about how the Force Unleashed demo came out, and he started downloading it, and said "oh, I canceled my pre-order for this. I met a guy who will sell me wholesale copies of games for $25. I'm already getting Madden '09"...

I laughed and tried to argue the silliness of his belief, but my roommate is a guy who absolutely refuses to acknowledge that he might be wrong, and he takes his stands on the silliest of points. Like this one.

Is there any way at all "wholesale" (new in box, keep in mind) cannot possibly equate to "fell off a truck"?

Rius on

Posts

  • JohnnyCacheJohnnyCache Starting Defense Place at the tableRegistered User regular
    edited August 2008
    Man "wholesale" on brand new games is like 6$ less then shelf price. At least it was when my roommate ran a video game store.

    JohnnyCache on
  • JAEFJAEF Unstoppably Bald Registered User regular
    edited August 2008
    Man "wholesale" on brand new games is like 6$ less then shelf price. At least it was when my roommate ran a video game store.
    This. Profit margin on new games is very small, hence EBStop's furious push of their used garbage.

    JAEF on
  • SentrySentry Registered User regular
    edited August 2008
    Rius wrote: »
    I mean, seriously. We were talking about how the Force Unleashed demo came out, and he started downloading it, and said "oh, I canceled my pre-order for this. I met a guy who will sell me wholesale copies of games for $25. I'm already getting Madden '09"...

    I laughed and tried to argue the silliness of his belief, but my roommate is a guy who absolutely refuses to acknowledge that he might be wrong, and he takes his stands on the silliest of points. Like this one.

    Is there any way at all "wholesale" (new in box, keep in mind) cannot possibly equate to "fell off a truck"?

    Luckily, most people will learn from this after one burn. It just depends on how big an idiot your roommate is.

    Just make sure he doesn't "pre-order" from this guy.

    Sentry on
    [SIGPIC][/SIGPIC]
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  • DeShadowCDeShadowC Registered User regular
    edited August 2008
    Plus chances are when you get the "game" assuming you ever see the guy again, it won't be the game you had asked for.

    DeShadowC on
  • VoroVoro Registered User regular
    edited August 2008
    In the case of Madden, there's a chance that the guy is an EA employee and gets the game for $20. But then he'd also get fired for making a profit on the game. And he wouldn't be getting Force Unleashed cheap. So little to no chance, basically.

    Voro on
    XBL GamerTag: Comrade Nexus
  • Prot3usProt3us Registered User regular
    edited August 2008
    I don't understand why this bothers you enough to warrant a post on a forum. If you buddy is getting a good deal more power to him. If he gets ripped off its his money.

    Prot3us on
  • DrezDrez Registered User regular
    edited August 2008
    $25 is unlikely, but getting new PS3/Xbox 360/Wii/PSP/NDS games at wholesale, or slightly above it, is not impossible. There is a legitimate, legal vendor in downtown NYC, for instance, that gets small quantities of games at wholesale price and sells them at a pretty big discount sometimes. Like, I got the Stranglehold Limited Edition (the one that had a MSRP of $69.99) for $50 and sales tax was included, so I saved like $27.

    They are able to do it because of some veteran license or something.

    Anyway, $25 only sounds scammy because of that particular price point, but it's not impossible is all I'm saying.

    Drez on
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  • VisionOfClarityVisionOfClarity Registered User regular
    edited August 2008
    Prot3us wrote: »
    I don't understand why this bothers you enough to warrant a post on a forum. If you buddy is getting a good deal more power to him. If he gets ripped off its his money.

    On the same note, why does it bother you so much that he posted that you felt it warranted a comment on the forum?


    On topic: I work for an online store company and we sell things at barely above wholesale simply because not having brick and mortar stores cuts out a ton of our overhead. I don't know how game distribution works but it is possible that it could be legit.

    VisionOfClarity on
  • DeShadowCDeShadowC Registered User regular
    edited August 2008
    Prot3us wrote: »
    I don't understand why this bothers you enough to warrant a post on a forum. If you buddy is getting a good deal more power to him. If he gets ripped off its his money.

    On the same note, why does it bother you so much that he posted that you felt it warranted a comment on the forum?


    On topic: I work for an online store company and we sell things at barely above wholesale simply because not having brick and mortar stores cuts out a ton of our overhead. I don't know how game distribution works but it is possible that it could be legit.

    Games don't have an 150% markup.

    DeShadowC on
  • VisionOfClarityVisionOfClarity Registered User regular
    edited August 2008
    Out of curiosity, what is the average markup for video games?

    VisionOfClarity on
  • PraexesPraexes Registered User new member
    edited August 2008
    Your stupid roommate is facing two possibilities:

    - Complete rip-off. He'll either never get his game or get a 're-branded' game (not the actuall game but an older one either in a new box of even with a new label printed on it) and never see the guy again.

    - Games were stolen. Best case scenario: he keeps getting cheap games. Worst case: he gets arrested for knowingly buying stolen merchandise. He doesn't really have much of a defence, since the mark-down is so drastic and the source so shady, it should be obvious they were stolen.

    Praexes on
  • VisionOfClarityVisionOfClarity Registered User regular
    edited August 2008
    Praexes wrote: »
    - Games were stolen. Best case scenario: he keeps getting cheap games. Worst case: he gets arrested for knowingly buying stolen merchandise. He doesn't really have much of a defence, since the mark-down is so drastic and the source so shady, it should be obvious they were stolen.

    Unless he knew for a fact the games were stolen (and the police can prove it, not say he should have known but actually prove he was told or discovered the games) he can't be charged with receiving stolen merchandise. If the police somehow got his name the worst that would happen is they would take the games and he'd be out whatever he paid.

    VisionOfClarity on
  • HevachHevach Registered User regular
    edited August 2008
    Praexes wrote: »
    - Games were stolen. Best case scenario: he keeps getting cheap games. Worst case: he gets arrested for knowingly buying stolen merchandise. He doesn't really have much of a defence, since the mark-down is so drastic and the source so shady, it should be obvious they were stolen.

    Unless he knew for a fact the games were stolen (and the police can prove it, not say he should have known but actually prove he was told or discovered the games) he can't be charged with receiving stolen merchandise. If the police somehow got his name the worst that would happen is they would take the games and he'd be out whatever he paid.

    All they have to do is prove it was stolen and that he has it, not that he knew it was stolen.

    Being in exclusive possession (that is, there's no evidence it came from someone else) of stolen property in some states is sufficient to uphold a conviction of theft. Being in possession of stolen property in any state is enough to uphold a conviction for receiving stolen property. In neither case is it necessary that the defendant know the game was stolen. There's some protection there depending on how you get it, but buying from a private party at a suspicious markdown probably doesn't carry any of those protections unless he's offered the chance to cooperate and catch the seller, in which case he should know that immunity agreements are non-binding and he should still have a defense lawyer on retainer.

    Hevach on
  • VisionOfClarityVisionOfClarity Registered User regular
    edited August 2008
    Hevach wrote: »
    Praexes wrote: »
    - Games were stolen. Best case scenario: he keeps getting cheap games. Worst case: he gets arrested for knowingly buying stolen merchandise. He doesn't really have much of a defence, since the mark-down is so drastic and the source so shady, it should be obvious they were stolen.

    Unless he knew for a fact the games were stolen (and the police can prove it, not say he should have known but actually prove he was told or discovered the games) he can't be charged with receiving stolen merchandise. If the police somehow got his name the worst that would happen is they would take the games and he'd be out whatever he paid.

    All they have to do is prove it was stolen and that he has it, not that he knew it was stolen.

    Being in exclusive possession (that is, there's no evidence it came from someone else) of stolen property in some states is sufficient to uphold a conviction of theft. Being in possession of stolen property in any state is enough to uphold a conviction for receiving stolen property. In neither case is it necessary that the defendant know the game was stolen. There's some protection there depending on how you get it, but buying from a private party at a suspicious markdown probably doesn't carry any of those protections unless he's offered the chance to cooperate and catch the seller, in which case he should know that immunity agreements are non-binding and he should still have a defense lawyer on retainer.

    Unless he has a criminal record or they suspect him of some other crime they can't nail him on he won't get in any trouble over this. The crime of theft does not include unknowingly purchasing stolen property (the cops can't say but it was cheap so you should have known, that's not evidence of any kind and would never hold up in court so a DA certainly wouldn't waste their time on it) and he's not the one fencing it either. What case study/statutes are you getting your info from?

    VisionOfClarity on
  • DerrickDerrick Registered User regular
    edited August 2008
    Hevach wrote: »
    Praexes wrote: »
    - Games were stolen. Best case scenario: he keeps getting cheap games. Worst case: he gets arrested for knowingly buying stolen merchandise. He doesn't really have much of a defence, since the mark-down is so drastic and the source so shady, it should be obvious they were stolen.

    Unless he knew for a fact the games were stolen (and the police can prove it, not say he should have known but actually prove he was told or discovered the games) he can't be charged with receiving stolen merchandise. If the police somehow got his name the worst that would happen is they would take the games and he'd be out whatever he paid.

    All they have to do is prove it was stolen and that he has it, not that he knew it was stolen.

    Being in exclusive possession (that is, there's no evidence it came from someone else) of stolen property in some states is sufficient to uphold a conviction of theft. Being in possession of stolen property in any state is enough to uphold a conviction for receiving stolen property. In neither case is it necessary that the defendant know the game was stolen. There's some protection there depending on how you get it, but buying from a private party at a suspicious markdown probably doesn't carry any of those protections unless he's offered the chance to cooperate and catch the seller, in which case he should know that immunity agreements are non-binding and he should still have a defense lawyer on retainer.

    Unless he has a criminal record or they suspect him of some other crime they can't nail him on he won't get in any trouble over this. The crime of theft does not include unknowingly purchasing stolen property (the cops can't say but it was cheap so you should have known, that's not evidence of any kind and would never hold up in court so a DA certainly wouldn't waste their time on it) and he's not the one fencing it either. What case study/statutes are you getting your info from?

    If the thief gets caught he can roll over on the roommate and say he told him the goods were stolen if it will get him a lesser charge.

    Derrick on
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  • VisionOfClarityVisionOfClarity Registered User regular
    edited August 2008
    Derrick wrote: »
    Hevach wrote: »
    Praexes wrote: »
    - Games were stolen. Best case scenario: he keeps getting cheap games. Worst case: he gets arrested for knowingly buying stolen merchandise. He doesn't really have much of a defence, since the mark-down is so drastic and the source so shady, it should be obvious they were stolen.

    Unless he knew for a fact the games were stolen (and the police can prove it, not say he should have known but actually prove he was told or discovered the games) he can't be charged with receiving stolen merchandise. If the police somehow got his name the worst that would happen is they would take the games and he'd be out whatever he paid.

    All they have to do is prove it was stolen and that he has it, not that he knew it was stolen.

    Being in exclusive possession (that is, there's no evidence it came from someone else) of stolen property in some states is sufficient to uphold a conviction of theft. Being in possession of stolen property in any state is enough to uphold a conviction for receiving stolen property. In neither case is it necessary that the defendant know the game was stolen. There's some protection there depending on how you get it, but buying from a private party at a suspicious markdown probably doesn't carry any of those protections unless he's offered the chance to cooperate and catch the seller, in which case he should know that immunity agreements are non-binding and he should still have a defense lawyer on retainer.

    Unless he has a criminal record or they suspect him of some other crime they can't nail him on he won't get in any trouble over this. The crime of theft does not include unknowingly purchasing stolen property (the cops can't say but it was cheap so you should have known, that's not evidence of any kind and would never hold up in court so a DA certainly wouldn't waste their time on it) and he's not the one fencing it either. What case study/statutes are you getting your info from?

    If the thief gets caught he can roll over on the roommate and say he told him the goods were stolen if it will get him a lesser charge.

    Except the cops wouldn't be interested in the people who bought the goods so much as who the guys was fencing through and where he got his goods if he was a fence himself. It wouldn't be worth the cops time.

    VisionOfClarity on
  • EtchEtch Registered User regular
    edited August 2008
    Yeah, and all the guy has to say is "No, I didn't buy it from him"

    Do games have some sort of individual tracking number on each disc or something? Because if they don't, you can't prove he didn't buy it from somewhere else.

    Etch on
  • the cheatthe cheat Registered User, ClubPA regular
    edited August 2008
    my friend works at activision and he gets all their games for 15 bucks. so it is possible this guy has the same type of connection, depending on where you live.

    the cheat on
    hdm3eeo1dj12.png
  • JohnnyCacheJohnnyCache Starting Defense Place at the tableRegistered User regular
    edited August 2008
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    JohnnyCache on
  • VisionOfClarityVisionOfClarity Registered User regular
    edited August 2008
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    That's really low, how do game stores make any money with a markup that low?

    VisionOfClarity on
  • the cheatthe cheat Registered User, ClubPA regular
    edited August 2008
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    yeah those games are different publishers.

    the cheat on
    hdm3eeo1dj12.png
  • ImprovoloneImprovolone Registered User regular
    edited August 2008
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    That's really low, how do game stores make any money with a markup that low?

    They push used equipment.

    Improvolone on
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  • DeShadowCDeShadowC Registered User regular
    edited August 2008
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    That's really low, how do game stores make any money with a markup that low?

    They push used equipment.

    And Mag sales, and pre orders, and in some cases warranties.

    DeShadowC on
  • stawkstawk Registered User regular
    edited August 2008
    DeShadowC wrote: »
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    That's really low, how do game stores make any money with a markup that low?

    They push used equipment.

    And Mag sales, and pre orders, and in some cases warranties.

    preorders dont make us anymore money then a normal sale and the mag sales are just so you will get the discount card so youll buy more used games, which is where we make our money.

    stawk on

    stawk.jpg
  • DeShadowCDeShadowC Registered User regular
    edited August 2008
    stawk wrote: »
    DeShadowC wrote: »
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    That's really low, how do game stores make any money with a markup that low?

    They push used equipment.

    And Mag sales, and pre orders, and in some cases warranties.

    preorders dont make us anymore money then a normal sale and the mag sales are just so you will get the discount card so youll buy more used games, which is where we make our money.

    But essentially they act as interest free loans.

    DeShadowC on
  • Bionic MonkeyBionic Monkey Registered User, ClubPA regular
    edited August 2008
    stawk wrote: »
    DeShadowC wrote: »
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    That's really low, how do game stores make any money with a markup that low?

    They push used equipment.

    And Mag sales, and pre orders, and in some cases warranties.

    preorders dont make us anymore money then a normal sale and the mag sales are just so you will get the discount card so youll buy more used games, which is where we make our money.

    On a store to store basis, preorders don't make you any more money, but the company gets to sit on that $5 for weeks to months at a time and earn interst on it.

    Bionic Monkey on
    sig_megas_armed.jpg
  • ClipseClipse Registered User regular
    edited August 2008
    stawk wrote: »
    DeShadowC wrote: »
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    That's really low, how do game stores make any money with a markup that low?

    They push used equipment.

    And Mag sales, and pre orders, and in some cases warranties.

    preorders dont make us anymore money then a normal sale and the mag sales are just so you will get the discount card so youll buy more used games, which is where we make our money.

    On a store to store basis, preorders don't make you any more money, but the company gets to sit on that $5 for weeks to months at a time and earn interst on it.

    Another thing to note is that people do not always act on preorders. On at least one occasion I've preordered a game at GameStop (putting down $5), only to discover on release day that it is $10 cheaper and in stock at a random big department store and buy it there.

    Clipse on
  • KyouguKyougu Registered User regular
    edited August 2008
    Clipse wrote: »
    stawk wrote: »
    DeShadowC wrote: »
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    That's really low, how do game stores make any money with a markup that low?

    They push used equipment.

    And Mag sales, and pre orders, and in some cases warranties.

    preorders dont make us anymore money then a normal sale and the mag sales are just so you will get the discount card so youll buy more used games, which is where we make our money.

    On a store to store basis, preorders don't make you any more money, but the company gets to sit on that $5 for weeks to months at a time and earn interst on it.

    Another thing to note is that people do not always act on preorders. On at least one occasion I've preordered a game at GameStop (putting down $5), only to discover on release day that it is $10 cheaper and in stock at a random big department store and buy it there.

    They always keep those records on file though. You should be able to go and put that money towards something else.
    Least that's been my experience.

    Kyougu on
  • HevachHevach Registered User regular
    edited August 2008
    I've done that, but you have to remember and ask - they won't say, "Oh, hey, we owe you money." There are probably plenty of instances where people forget entirely.

    Hevach on
  • the cheatthe cheat Registered User, ClubPA regular
    edited August 2008
    i bet they make some bank on gift cards too. an alarming amount of those never get used.

    the cheat on
    hdm3eeo1dj12.png
  • fuelishfuelish Registered User regular
    edited August 2008
    Is the margin really that low? I work in a small business(Which is a little different than the thousands of GS out there) and we have to have about a 70% mark up(40%margin) to even have a chance of breaking even after rent/utlilities/payroll/wholesale costs are covered.

    fuelish on
    Another day in the bike shop Pretty much what it sounds like. The secret lifestyle, laid open.
  • ClipseClipse Registered User regular
    edited August 2008
    Kyougu wrote: »
    They always keep those records on file though. You should be able to go and put that money towards something else.
    Least that's been my experience.

    That's good to know for the future. The gamestop in question actually told me there was nothing I could do - either buy the game from them (losing $5 more) or give up the $5 I had put down. This was years ago though, and this particular gamestop was pretty shitty in general so they may just have been lying.

    Clipse on
  • see317see317 Registered User regular
    edited August 2008
    fuelish wrote: »
    Is the margin really that low? I work in a small business(Which is a little different than the thousands of GS out there) and we have to have about a 70% mark up(40%margin) to even have a chance of breaking even after rent/utlilities/payroll/wholesale costs are covered.
    Every person I've ever talked to who has worked in a game store has said that the margins really are that slim.
    That's a large part of why you so rarely see independent game stores around, without the bargaining power of a nation wide chain behind them they get raped to death by the game publishers/distributors.

    see317 on
  • the cheatthe cheat Registered User, ClubPA regular
    edited August 2008
    the small stores usually get by with selling imports and rare older games. and having a much bigger selection in general.

    the cheat on
    hdm3eeo1dj12.png
  • VisionOfClarityVisionOfClarity Registered User regular
    edited August 2008
    fuelish wrote: »
    Is the margin really that low? I work in a small business(Which is a little different than the thousands of GS out there) and we have to have about a 70% mark up(40%margin) to even have a chance of breaking even after rent/utlilities/payroll/wholesale costs are covered.

    I used to work in a jewelry store and there the markups could get incredibly high. I can think of sterling silver pieces we got for $1 that we'd sell for $25.

    VisionOfClarity on
  • the cheatthe cheat Registered User, ClubPA regular
    edited August 2008
    food service has way huge markups. i remember taking a foods class and figuring out that things like funnel cakes were costing about 19 cents, and selling for three and four dollars!

    the cheat on
    hdm3eeo1dj12.png
  • KyouguKyougu Registered User regular
    edited August 2008
    fuelish wrote: »
    Is the margin really that low? I work in a small business(Which is a little different than the thousands of GS out there) and we have to have about a 70% mark up(40%margin) to even have a chance of breaking even after rent/utlilities/payroll/wholesale costs are covered.

    I work at a local videostore, and each week we order games for rent.
    Markup is that high. New PS3/360 games are 52 bucks for us I believe. Owner actually raised the prices on their rentals due to this.

    Kyougu on
  • PheezerPheezer Registered User, ClubPA regular
    edited August 2008
    stawk wrote: »
    DeShadowC wrote: »
    Out of curiosity, what is the average markup for video games?

    Wholesale to retail, it's maybe 10%. Like 5 out of 50 dollars.

    I don't know what it is distributer to wholesale, but if the guy can get more than one brand of games he's obviously not buying them from a games company where he works.

    That's really low, how do game stores make any money with a markup that low?

    They push used equipment.

    And Mag sales, and pre orders, and in some cases warranties.

    preorders dont make us anymore money then a normal sale and the mag sales are just so you will get the discount card so youll buy more used games, which is where we make our money.

    Also, accessories.

    Pheezer on
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    CUZ THERE'S SOMETHING IN THE MIDDLE AND IT'S GIVING ME A RASH
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