Why Can't I Make Money with New Release Dvds?
The wholesale price of a new release DVD is what makes a majority of sellers purchase every DVD wholesale list they can. For the most part, they are already using the largest DVD wholesaler there is, but they have convinced themselves that there is a top secret wholesaler out there that will get them an even better price on a new release dvd.
I admit, I was just as shocked as anyone to discover the wholesale cost of new release dvds. We all have some expectation that new release dvds must be available at a very low cost. Otherwise, how would so many sellers on ebay be offering them for a few dollars each?
A NEW RELEASE DVD SELLS AT A PREMIUM PRICE EVEN WITH A WHOLESALER
I researched for months and found that new release DVDs were nothing but high demand products with no or very little profit available. If you will search Ebay's top three DVD sellers, you will see that they do not offer new releases. Why you ask? The answer is simple. With new releases there is simply too much competition. This drives down the price and leaves little or no profit for the dvd reseller.
There are several important reasons why an item as popular as a new release dvd would yield no profit to a dvd seller.
1. Unless you have millions of dollars to spend, you have to buy your new release dvd movies from one of the three main dvd suppliers in the United States. For the huge box stores like Wal-mart, they have enough volume to buy directly from the studios. They are able to bypass the middle man and buy these movies at the same cost paid by the big distributors.
What these big retail chains do is resale the new releases at cost, and uses these as bait to bring customers in their store. Think about it. How often have you walked into to Wal-Mart to purchase one item and come out with ten? This is why you will find that these retail chains can sell a new release cheaper than you can buy one wholesale.
2. The second reason is new release dvds are not just in demand with the public, they are in demand with the bootleggers as well. A bootlegger can make a new release dvd with the cover art for as little as $1.50 each. These illegal counterfeits usually go on sale before they are even officially released to the public.
Bootlegging is illegal, and there is no way that you can compete with a new release DVD that is made for $1.50.
HOW EXACTLY DO SOME EBAY SELLER SELL A NEW RELEASE SO CHEAP?
1. I have said this before and I will say it again, I avoid new releases like the Bubonic Plague. They are just not profitable. There are some sellers that are so determined to sell new releases that they will buy them at Wal-Mart, and then resell them on Ebay.
2. Some of the big sellers may be using them as loss leaders like Wal-mart. If you were selling 10,000 dvds a month you were making money from, you could afford to sell 100 - 200 new releases at cost.
3. I'm of the opinion that a very large portion of the new release dvds available on ebay are counterfeits. One of the giveaways are dvd auctions that include any of the following in the description: DVD-5, import, doesn't include the case, shipped in plastic sleeves, shipped from China, Philippines, Malaysia, or some other third world country.
DON'T WASTE YOUR TIME ON NEW RELEASE DVDS
My dvd wholesale directory will offer new release DVDs. These are the same suppliers that furnish new releases to DVD rental stores. I have them for those who are dead set on selling new release dvds. Take a little advice though and do a little research and sell the older DVDs that are still big sellers with a lot of profit available on them. Don't waste your time with new releases unless you are already an established seller using them as loss leaders.
About the Author: Brent Crouch is the owner of Jillian Entertainment. He has spent the last 3 years teaching others how he built a 1 million dollar business buying dvds wholesale and reselling them for profit.
More articles by brent@jillianinternetmarketing.com
Print Article | Download PDF | 68 views | Sep 15 2007
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