The price is NOT that bad when you realise...

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quarryfied

Banned
Ok say it's £425. I ordered one through quidco for £25 off. VAT is £70. The retailer takes £80 to £100. They have to pay for warehouse/transport costs and probably import duty. Sony are probably only getting £150 per unit.

Not to mention the free live service, NO charge and play kits etc. Bargain if you think about it!:smashin:
 

JamesOD

Active Member
The retailer will not make £80 to £100 on this machine m8 margins will be tighter than that, they always are on hardware. Retailers will make the money on the games so sony will bank closer to £200 on the machine but tbh no one will make a huge profit on the machine.

Sony will sell the unit's at a loss like every other console manufacturer at first and then reduce costs over the lifespan of a machine.
 

quarryfied

Banned
runam0k said:
How did you order through quidco?
you go to quidco.com then once you are registered you click on hmv, then click the link to "shop and earn cashback with this merchant" (or words to that effect). You can get money back with game, play, hmv, comet, currys in fact tons of well known retailers. I bought a tv for a grand from john lewis and got 4%/£40 back.

Unfortuanately, hmv have stopped taking preorders now, i was lucky enough to get one yesterday, hope they honour it.
 

NackNack

Banned
The margin for consoles isn't much more than £5 in a lot of cases. Sony will be getting over £400 per console.
 

quarryfied

Banned
NackNack said:
The margin for consoles isn't much more than £5 in a lot of cases. Sony will be getting over £400 per console.
lol, the VAT is £70 alone, and btw FIVE POUNDS MY A**£ ;) :hiya:
 

Ambient Fish

Active Member
It's the same with the Aston Martin DB9, why did they make it so expensive, if it was the same price as a Ford Mondeo they would sell far more of them.:D

Seriously, if the machine is overpriced in your opinion then don't buy it, it's that simple, no one from Sony is going to come round your place and twist your arm or make you sell your wife and kids into slavery (wish they would tho) LoL.

So much rubbish talked about a machine that very few people have actually seen never mind played, why don't we all just settle down and make comments and moan when we have some experience from which to draw conclusions.:suicide:
 

NackNack

Banned
quarryfied said:
lol, the VAT is £70 alone, and btw FIVE POUNDS MY A**£ ;) :hiya:
Thankfully I appear to know more than you with smart alec comments like yours.

The GBA SP had a margin of £2.86 or so a few years ago, the PStwo (slimline)'s margin was about £5 - £6, offset by bundle deals with accessories and games.

So please, unless you actually know what you're talking about, don't bother.
 

quarryfied

Banned
NackNack said:
Thankfully I appear to know more than you with smart alec comments like yours.

The GBA SP had a margin of £2.86 or so a few years ago, the PStwo (slimline)'s margin was about £5 - £6, offset by bundle deals with accessories and games.

So please, unless you actually know what you're talking about, don't bother.
On a £425 machine they are only getting a fiver? you are clearly insane if you believe that! QUIDCO TAKE £25 ON THAT AMOUNT WHICH IS CHARGED TO THE RETAILER!!!! They are making a £20 loss then according to you! lol, i've heard it all now.

So, just a little over ONE PERCENT profit margin? On a scart cable costing twenty quid they only make TWENTY PENCE? HAHHAHAHAH!!!

On a TV for a GRAND they are only making a TENNER?

A game for Fourty quid they only get FORTY PENCE?

Whatever, case closed me thinks!
 

Educated Guess

Well-known Member
quarryfied said:
On a £425 machine they are only getting a fiver? you are clearly insane if you believe that! QUIDCO TAKE £25 ON THAT AMOUNT WHICH IS CHARGED TO THE RETAILER!!!! They are making a £20 loss then according to you! lol, i've heard it all now.

So, just a little over ONE PERCENT profit margin? On a scart cable costing twenty quid they only make TWENTY PENCE? HAHHAHAHAH!!!

On a TV for a GRAND they are only making a TENNER?

A game for Fourty quid they only get FORTY PENCE?

Whatever, case closed me thinks!
On games hardware retailer’s margins are traditionally obsolete.
No one makes money on the consoles you try to make in up with the associated sales that go along with it and of course additional software.

Regarding PS3, no one knows the retailers cost as yet. If there is any margin to be had it will be eroded by aggressive discounting and bundle deals as stores fight for market share so as NackNack said you could easily end up making just £5 (then all that would happen is Asda or Tesco would give an additional £5 discount).

The hardware manufacturers know this and even encourage it.
The situation exists currently with 360, PSP and PS2. No retailers are making money on the hardware alone. On some bundle deals you actually make a loss in order to be competative.
 

[email protected]

Novice Member
quarryfied said:
On a £425 machine they are only getting a fiver? you are clearly insane if you believe that! QUIDCO TAKE £25 ON THAT AMOUNT WHICH IS CHARGED TO THE RETAILER!!!! They are making a £20 loss then according to you! lol, i've heard it all now.

So, just a little over ONE PERCENT profit margin? On a scart cable costing twenty quid they only make TWENTY PENCE? HAHHAHAHAH!!!

On a TV for a GRAND they are only making a TENNER?

A game for Fourty quid they only get FORTY PENCE?

Whatever, case closed me thinks!
You clearly have no idea whatsoever what your talking about so rather than make a further fool of yourself its best you drop it now me thinks :)

PS: Can I ask what is the point in having several things in your signature equipment list that you dont actually own????
 

lokideviluk

Standard Member
John Martucci said:
No retailers are making money on the hardware alone. On some bundle deals you actually make a loss in order to be competative.
Such as GAME's Premium 360 pack with Prey & Oblivion for £319.99 , Im pretty sure thats got to be at a loss considering the games are £49.99 each normally.
 
Why would a company sell anything if they make a loss:eek: . A company will always aim at making profit. If that means selling one item at a loss and others overpriced then that is the way to do it. I remember £50.00 tags on xbox360 games and also a ps1 for £300.00. Things don’t change they just increase in price.

At the end of the day a ps3 is just an overprice george forman grill:D

Kids will put presurre on parents and parents will feel pressure from other parents all for something that has more hype than it should. Sony should think again after UMD will blue-ray go that way. Have a look at the early players why so big ? now look at the ps3 are you missing some key part.

Look at Sony BDP-S1 Blu-ray Player Dimensions 430mm x 105mm x 355mm.
Now Ps3 325mm x 98mm x 274mm and NO I dont own a 360 or am a fan of hd-dvd. Just feel that we have came full circle will the life cycle of home entertainment and that we allow companies to destroy what we ALL want.:smashin:
 

FishDUDE

Well-known Member
quarryfied said:
On a £425 machine they are only getting a fiver? you are clearly insane if you believe that! QUIDCO TAKE £25 ON THAT AMOUNT WHICH IS CHARGED TO THE RETAILER!!!! They are making a £20 loss then according to you! lol, i've heard it all now.

So, just a little over ONE PERCENT profit margin? On a scart cable costing twenty quid they only make TWENTY PENCE? HAHHAHAHAH!!!

On a TV for a GRAND they are only making a TENNER?

A game for Fourty quid they only get FORTY PENCE?

Whatever, case closed me thinks!
You really dont understand the buisness do you? as has been mentioned serveral times above, console hardware has very small margins (less than a tenner) things like a £20 scart cable obviously has a much higher margin, thats why when you buy a console shops will encourage you to buy accessories or more games or anything infact.
 

NackNack

Banned
pixelpixel said:
Why would a company sell anything if they make a loss:eek: . A company will always aim at making profit.
They don't, they sell them subsidised by bundle deals, or because people want the consoles and will end up buying games too.
quarryfied said:
On a £425 machine they are only getting a fiver? you are clearly insane if you believe that! QUIDCO TAKE £25 ON THAT AMOUNT WHICH IS CHARGED TO THE RETAILER!!!! They are making a £20 loss then according to you! lol, i've heard it all now.

So, just a little over ONE PERCENT profit margin? On a scart cable costing twenty quid they only make TWENTY PENCE? HAHHAHAHAH!!!

On a TV for a GRAND they are only making a TENNER?

A game for Fourty quid they only get FORTY PENCE?

Whatever, case closed me thinks!
I'm talking about consoles, why are you bringing TVs into this? Games are also totally different, as I said, that's where they make the money from.

Thankfully you've made yourself look even more of an ignoramous, so all is well in the world.

If you also noticed, I never said about the profit margin on the PS3, but yes, I'd be willing to bet it's not that high either, since the PStwo's profit margin has always been less than £10 for the retailer.

Yup, a really small profit margin, the GBA SP was being sold at around £70, and yes, less than £3 profit for the retailer, helped by games bundles. The Xbox (original) was around £5 profit for the retailer, and the 360 was sold at a similar margin.

It does help having worked in a GAME, Gamestation, and having a friend that did the same (at management level). :)
 

quarryfied

Banned
FishDUDE said:
You really dont understand the buisness do you? as has been mentioned serveral times above, console hardware has very small margins (less than a tenner) things like a £20 scart cable obviously has a much higher margin, thats why when you buy a console shops will encourage you to buy accessories or more games or anything infact.

Cheap consoles may well have tiny profits, but not a £425 machine.

Explain how they can pay Quidco twenty five quid if they only make A FIVER?

If anyone can PROVE that hmv will only make a fiver per PS3 i will sign over my house to you, simple as that. Plus everything in it and my car. The fact is they are making AT LEAST 10% to be able to give quidco 5%, AT LEAST.
 

Bilbob

Well-known Member
Actually, anyone in the 'know' at a buying level for a business selling consoles will tell you that low margins are exactly the case. Ok, whoever mentioned the £5 on a 425 machine may be exaggerating, but the margin IS very narrow. I speak from experience, I used to be a manager for Game, when they were independent, in the days of saturn ps1 and N64... margins were, and still are very small...
Oh, and the point about paying £25 to quidco... it's cos the amount paid is based not on what you buy, but how much you spend... different items have different margins, same as every walk of life.
 
X

xelallah

Guest
By quidco referring customers to the product, they get paid a sum of money per customer. what they do is pass this referral back to you. why would a service like quidco exist if it lost money?

as to the "selling consoles at a loss/small profit", what others are saying is true. you can't do anything with a console if you don't have games/accessories. XBOX360 games cost no more than about £15 to the retailer, and probably no more than about £10 for the manufacturer to make. Profit always comes through the 'addons'.

the companys such as gamestation and game are really in the money when it comes to pre-owned stuff. they pay you measly amounts for your stuff then sell it for more, not a penny goes back to the manufacturer. i think this is how the gamestation idea came about when it originated in york i believe.

back on topic, if you think the ps3 is worth that much, spend that much. i'd prefer to drink my own urine than spend that much on a console, someone else's even!
 

Educated Guess

Well-known Member
Reminds me of the time when having an account with Nintendo (notoriously aggressive on retailer margins) I queried the fact that I only made £1 on the sale a Gameboy (the original one that sold at around £80.00). They explained that I was expected to sell it as a service and that I was to regain income through additional software and accessories sales. Nothing has changed.

And quarryfied I might just take you up on your offer for your house. I’m betting that shortly after release retailers will make absolutely no margin whatsoever on a console as has always been the case. Our pricing is just getting even more aggressive in the UK even in comparison to Europe and the states.

Before you ask, I was importing console hardware and software from the US and the Far East into the country in 1992 and subsequently had one of the first retail console shops to open up in the UK.
 

quarryfied

Banned
John Martucci said:
Reminds me of the time when having an account with Nintendo (notoriously aggressive on retailer margins) I queried the fact that I only made £1 on the sale a Gameboy (the original one that sold at around £80.00). They explained that I was expected to sell it as a service and that I was to regain income through additional software and accessories sales. Nothing has changed.

And quarryfied I might just take you up on your offer for your house. I’m betting that shortly after release retailers will make absolutely no margin whatsoever on a console as has always been the case. Our pricing is just getting even more aggressive in the UK even in comparison to Europe and the states.

Before you ask, I was importing console hardware and software from the US and the Far East into the country in 1992 and subsequently had one of the first retail console shops to open up in the UK.
Errr, YOU with one shop would make no money buying the odd console, i'm talking big chains like HMV. I will never believe that HMV pay £420 per console then sell them for a fiver more. My house is still up for grabs :thumbsup:
 

Pooon

Distinguished Member
The big chain retail stores will make between 10 and 15%(independants i would imagine will make slightly less) on the PS3, the software will net them around 20-30% and accessories between 30-40% depending on wether or not they are 1st or 3rd party
 

quarryfied

Banned
Pooon said:
The big chain retail stores will make between 10 and 15%(independants i would imagine will make slightly less) on the PS3, the software will net them around 20-30% and accessories between 30-40% depending on wether or not they are 1st or 3rd party

Thankyou! A voice of reason at last. :hiya:
 

NackNack

Banned
quarryfied said:
Cheap consoles may well have tiny profits, but not a £425 machine.

Explain how they can pay Quidco twenty five quid if they only make A FIVER?

If anyone can PROVE that hmv will only make a fiver per PS3 i will sign over my house to you, simple as that. Plus everything in it and my car. The fact is they are making AT LEAST 10% to be able to give quidco 5%, AT LEAST.
Because as someone else said, it's based on how much is spent, not the profit margins on each item. And AGAIN, I didn't mention how much profit the PS3 will give to the retailers because no one knows yet. The final price hasn't even been confirmed for the system yet!

They aren't making anything right now since it hasn't been released. You have no idea what you're on about.
quarryfied said:
Errr, YOU with one shop would make no money buying the odd console, i'm talking big chains like HMV. I will never believe that HMV pay £420 per console then sell them for a fiver more. My house is still up for grabs :thumbsup:
No one said they will make £5, you just made it up. I said that over the past few years, the GBA SP, PStwo and Xbox have been sold at £2 - £10 profit. Usually the lower end of the scale.
Pooon said:
The big chain retail stores will make between 10 and 15%(independants i would imagine will make slightly less) on the PS3, the software will net them around 20-30% and accessories between 30-40% depending on wether or not they are 1st or 3rd party
Why would independents make less? Accessories (official ones) don't make close to that at all. Games will net around the 20% mark, and I'll bet that the console doesn't come close to 10 - 15%, I've never seen that kind of figure in all the launches of consoles I've been in retail.
quarryfied said:
Thankyou! A voice of reason at last. :hiya:
But he's wrong, and so are you. Just because one person 'agrees' with you doesn't make you right in the slighest, it just makes you even more ignorant of the facts I'm telling you yet ignoring completely.
 

Munkey Boy

Distinguished Member
[MOD COMMENT] I've had to delete a couple of messages here now. Keep the personal insults/flames out of it, try and make a constructive argument based on facts as opposed to hearsay, and this could be a useful discussion.
 

[email protected]

Novice Member
Munkey Boy said:
[MOD COMMENT] I've had to delete a couple of messages here now. Keep the personal insults/flames out of it, try and make a constructive argument based on facts as opposed to hearsay, and this could be a useful discussion.
People have posted facts and they have been discounted and ignored. My comment was NOT an insult or flame and yet it has been deleted?? The moderator above posted a comment with the imortal words 'I would imagine', quite clearly not facts, and yet it is left.

Maybe if I wasnt disagreeing with the mod above my post could have stayed? Oh well, didnt realise this forum was like this, thought it was adults expressing opinions and free speech etc. Seems that the discussion can go ahead but the mods will delete selected posts as they see fit so I wont be posting again.
 
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