Where Ideas Come To Die
High Cost, Low Profit
A Playstation 2 costs $199.99, quite a bit of change right? Well at work we make so little profit on a sale of a PS2 it's not even amusing. We make 4.8% profit on a sale of a PS2, or about $9.60. Which isn't a lot of money. Compare this to a $4.99 pack of batteries that nets us over $3.00 in profit.
So when you buy an expensive item and you wonder why we whore a memory card, a controller or a game it's simple. We make a lot more money on video games or an accessory than on the system itself.
The most popular item the week before Christmas, in all of KB Toys, was the $3.99 pack of Yu-Gi-Oh cards, we make about 56% profit from each pack sold.