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The wholesale video game market is akin to both the bargains found in wholesale technology and media formats, with a splash of effects similar to a rare book collection. For a wholesale retailer, few product lines are easier to stock than overstock video games and liquidated video game accessories. There are five great reasons why the fruits of the wholesale video game market are ripe for wholesale retailers to pick:
1. The customer culture of gamers is perfect for wholesale and used video game merchandise.
Gamers not only willingly purchase used and wholesale video game titles, most prefer them. For the under 18 crowd, Mom and Dad are the primary source for new video game items, so the lowest priced games are purchased. Even the most successful titles are heavily dependent upon word-of-mouth advertising campaigns and professional game reviewers, making most gamers willing to wait for used versions or wholesale video games to become available. Plus, the wear and tear of normal use is minimal, and original packaging is frequently considered optional.
2. Pricing standards are wide open, and based on nearly pure concepts of supply and demand.
The major strip mall outlet for used and overstock video games has been GameStop for a number of years now. A newspaper pricing guide from the store was once the main pricing guideline for trade-in and resale value on video games and accessories. Today, with the development of Internet auctions, games sell at the price consumers are willing to pay. In most cases, the lowest prices are tagged onto wholesale game consoles and game titles with the oldest release dates.
There is however a growing market for rare and hard-to-find video games. The majority of games in this category are from older systems that are no longer supported or manufactured by the original developer. A quick check for a Disney Mix Dance Dance Revolution for the PlayStation on eBay will show auctions ending at more than double the original manufacturer suggested retail price. Other rare titles with a high demand mainly include special editions of games, or titles only released in Japan. The availability of computer emulators has undercut the value of many older games, but jewels like first versions of popular PlayStation RPGs are still out there. Almost every major video game franchise has a rare and highly sought title or accessory, creating multiple “Holy Grail” type products.
3. Wholesale video game product lines are simple to stock, and easy to educate staff about.
Most wholesale video game displays are self-explanatory. Customers are looking for a good price and in most cases a particular title or accessory. However, whether the desired game or accessory is available or not, the customer is likely to purchase other video game products available below retail price points. The need for a new game can likely be filled by multiple titles in any given video game genre.
Staff do not need to be extremely knowledgeable about game play since the product packaging will give information and screen shots. Numerous gamer magazines are on the market now, and stocking a few back issues for employee perusal is helpful. An accurate inventory for quick retrieval of requested wholesale video games and accessories is the best tool for a sales staff. Wholesale video games are small items, and thus take up little shelf room on either the sales floor in a back room storage. Unorganized storage systems can easily become needle-in-the-haystack puzzles if retailers are not careful.
4. Wholesale video games and overstock accessories or game consoles work well together in packages.
Sale promotions and package deals are superb ways to market wholesale video game merchandise. Many overstock video game accessories pair with a specific video game title or franchise. With the latest craze for Guitar Hero III and Rock Band, demand has increased for the preceding title and guitar controller of Guitar Hero II. Savvy retailers will be sure to invest in the previous version of the latest titles to offer a wholesale and affordable option for customers' needs.
A growing product area for the video game market are third-party accessories for storage and protection. Wholesale video game accessories in this category are used to protect systems, provide ease in travel, and allow for personalized decoration of everything from controllers to consoles. These items are typically far below the cost of accessories with the game console's name brand. An effective use for retailers is to use wholesale third party game accessories to add value to higher priced items, such as wireless controllers or purchase of a significant volume of games.
5. Video game companies preserve backwards compatibility with new system releases.
A concept begun by Sony with the development of backwards compatibility between the Sony PlayStation and the PlayStation 2, backwards compatibility is now a standard and expected feature for every new console release. Handhelds have also embraced this feature evidenced by Nintendo DS players capable of running wholesale Game Boy Advance games. For a wholesale retailer or used video game supplier, this is a great feature that ensures long-term market viability for older games. With new game titles receiving blockbuster type advertising blitzes, and ever increasing price tags to pay for the higher development costs, slightly older titles at wholesale prices are extremely appealing. No one wants to keep older game systems cluttering the already full entertainment cabinet, so backwards compatibility is a convenient and cost saving feature for both the player, and the retailer.
Overall, wholesale video game merchandise is an area of the entertainment and technology divisions with strong protection against a threat of becoming obsolete. Wholesale retailers should take advantage of the amenable customer culture, and open pricing standards. Stocking wholesale video game consoles and accessories requires little upkeep or specialized product education for staff. Video game accessories and game titles pair well together in packages, and adapt well to a variety of sale strategies. Finally, backwards compatibility keeps customers interested in game titles longer and makes the wholesale video game merchandise market a viable business opportunity for retailers everywhere.
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