Suikoguy said:
Err, what does that have to do with a $5 tradin that they sell for $17.99?
Is the game going to be selling for less then $5?
Lame comparision
............................................
What does it have to do with your game that's selling at 17.99$ ? Very good question.
Each day, price drops occur in store, you got games sitting on the shelves that go down in price, and so does their pre-owned counterpart. To give a recent example, Prince Of Persia went down in price to 29.99$ CAD recently. For the new games, the company gets credited for whatever their inventory of that game is. But for the used games, they have to take the loss upon themselves. Let's say I bought 3 copies of Prince Of Persia when it was 69.99$ CAD, and I gave 35$ each in-store credit one month before the price drop. The 3 copies stay on the shelves at 59.99$ CAD, and then the price drop occurs. You got 3 games that you basically paid 35$ for, that you are now gonna sell for 24.99$ because of the price drop. It's 10$ X 3, so, 30$ in losses. When the company issues trade-in values, they gotta keep in mind that the new games could possibly drop in price soon, and that even if it doesn't, you got other games on which you're gonna take losses. Keeping in mind that new games aren't exactly the thing that's the most profitable on the market, video games stores has to turn to used games sales to make some sort of profit. If you give out too much in store credit, you're gonna take too much losses, and then, how are you gonna pay the rent ??? The employees ??
On the other side, if you don't give enough, people aren't gonna trade-in, BUT, what's the point of giving someone 10$ for Madden 2001, even if it's gonna sell for 15 or 17$, it's not worth, because you it's probably never gonna sell, except when you drop it to 0.99$ for clearance. If they start to give out too much for titles that are not gonna sell, it takes up place on the floor that could be used for more wanted games. You have to make money on games, to cover the losses made by prices drops of other games, that's the way it works.
Now, please, keep your "lame comparison" comments to yourself, go back to school and have a nice day.