BD Markup - Blu-ray Forum

davidgerk · 01-20-2010, 05:37 PM

This is a pretty general question. I'm probing the field to see if it would be a wise choice to get into the business within the next few years. I'll probably have more questions as this thread continues.

What is the standard markup for Blu-Ray discs?

ZoetMB · 01-20-2010, 08:55 PM

It depends upon whether you're buying direct from the manufacturer or buying from a sub-distributor or a mix of the two, but I would guess that no retailers are getting rich from BD sales and that the markups are well under 20%.

Selling physical media is a business that retailers are getting out of, not into. And if you're considering doing it online, you're competing against Amazon and the like.

In addition, in the future, you'll be competing with HD streaming/downloads, which will come from the studios, the cable channels, etc.

If you want to get "into the business", you need to evaluate what "value add" you're bringing to the table. And as a new retailer (if that's what you mean by getting into the business), the studios and/or distributors will probably not give you much credit and you'll have to pay upfront or upon delivery. That's not going to give you favorable cash flow.

Clark Kent · 01-20-2010, 10:12 PM

Listen to ZoetMB. Selling Blu-rays is mostly a loss-leader category by the larger retail stores to draw in customers, who go on to buy higher-margin items. Unless you plan to open a national chain of stores where you can leverage purchasing volumes to get discounts from the distributors, it is not a business for most people to enter.

The only way I see it being possible is to establish your own niche market that the bigger stores refuse to service. I think a retail store specializing in exclusive import-editions and other exotic releases could exist in one of the larger markets in the U.S., like San Francisco or New York.

Blove23 · 01-20-2010, 10:59 PM

There is always a market for BD. People who usually stream media don't have a sound system. Those of use that invested into a sound system will always purchase the hard copies.

Streaming is the last resort because the AQ is not there. When they start stream TrueHD and DTS-MA then things may change. I would prefer to have the hard copy than a copy on my hard drive. When streaming gets the audio quality like a hard disc then we can discuss other options.

Streaming takes away from the Blu-ray experience. I have Netflix and it still is not as good as the actual disc.

neos_peace · 01-20-2010, 11:38 PM

he never said that he was going to a retailer of BD. He just said he was going to or goign to think about getting into the bus. He "could" mean anything. Before we tell him not to bother, if we want to give him any good or bad advise we should ask him to be more specific on what he means.

SO..... what exactly do you mean "get into the bus. of BD."

01-20-2010, 05:37 PM	#1
davidgerk Junior Member Member since:Nov 2008 Blu-ray collection:118	BD Markup This is a pretty general question. I'm probing the field to see if it would be a wise choice to get into the business within the next few years. I'll probably have more questions as this thread continues. What is the standard markup for Blu-Ray discs?

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01-20-2010, 08:55 PM	#2
ZoetMB Blu-ray Ninja Member since:May 2009 Location:New York Blu-ray collection:172 DVD collection:27 Blu-ray reviews: 3	It depends upon whether you're buying direct from the manufacturer or buying from a sub-distributor or a mix of the two, but I would guess that no retailers are getting rich from BD sales and that the markups are well under 20%. Selling physical media is a business that retailers are getting out of, not into. And if you're considering doing it online, you're competing against Amazon and the like. In addition, in the future, you'll be competing with HD streaming/downloads, which will come from the studios, the cable channels, etc. If you want to get "into the business", you need to evaluate what "value add" you're bringing to the table. And as a new retailer (if that's what you mean by getting into the business), the studios and/or distributors will probably not give you much credit and you'll have to pay upfront or upon delivery. That's not going to give you favorable cash flow.

01-20-2010, 10:12 PM	#3
Clark Kent Blu-ray Prince Top contributor Member since:Oct 2007 Location:Metropolis Blu-ray reviews:2 Trading Score:184	Listen to ZoetMB. Selling Blu-rays is mostly a loss-leader category by the larger retail stores to draw in customers, who go on to buy higher-margin items. Unless you plan to open a national chain of stores where you can leverage purchasing volumes to get discounts from the distributors, it is not a business for most people to enter. The only way I see it being possible is to establish your own niche market that the bigger stores refuse to service. I think a retail store specializing in exclusive import-editions and other exotic releases could exist in one of the larger markets in the U.S., like San Francisco or New York.

01-20-2010, 10:59 PM	#4
Blove23 Senior Member Member since:Nov 2008 Location:Pittsburgh Blu-ray collection:67 Blu-ray reviews:1	There is always a market for BD. People who usually stream media don't have a sound system. Those of use that invested into a sound system will always purchase the hard copies. Streaming is the last resort because the AQ is not there. When they start stream TrueHD and DTS-MA then things may change. I would prefer to have the hard copy than a copy on my hard drive. When streaming gets the audio quality like a hard disc then we can discuss other options. Streaming takes away from the Blu-ray experience. I have Netflix and it still is not as good as the actual disc.

01-20-2010, 11:38 PM	#5
neos_peace Special Member Member since:Jul 2008 Location:Shamokin Dam, Pa Home Theater Gallery:14 Blu-ray collection:279 Trading Score:1	he never said that he was going to a retailer of BD. He just said he was going to or goign to think about getting into the bus. He "could" mean anything. Before we tell him not to bother, if we want to give him any good or bad advise we should ask him to be more specific on what he means. SO..... what exactly do you mean "get into the bus. of BD."

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