quote:
Originally posted by Jinnai:
It depends really on several things you've not mentioned. How much advertising you do, how much cost goes into packaging and label, salary staff and other expensidtures, etc. Now the biggest markup is sually at the retailer's end and a lot of that comes from two things: shelf time and they know poeple will pay it.
I didn't mention advertising, etc. in order to SIMPLIFY the math. As for markup, the wholesaler is charging 1/2 the MSRP. The retailer may offer a discount on the MSRP, but you'll still end up paying roughly that amount when you factor in cost of shipping.
Let's backtrack a bit on the printing issue. Some of you may be thinking to yourself, "I've got a dvd burner. why not just burn the games inhouse instead of sending them out to the printers?" There are a number of problems with doing it inhouse. First, equipment. How many computers would be needed to burn out 1,000 copies in, let's say, a month? And you would still need labor (i.e. someone sitting in front of the computers to insert/take out the copies). Then you gotta have the discs printed. Those do-it-yourself printed CD stickers/labels are cheesy and unprofessional; but let's say you still do it that way. What about inserts? Do you have the equipment to print them? What about cost of ink replacement?
Second, quality control. What if the disc you use to make a copy on has a flaw? It gets ditched because it's useless. And if you're printing in-house, you have to make sure that each copy is burned perfectly, with no flaw. Otherwise, you would end up replacing it for the customer, and eat some shipping cost in doing so.
Third, packaging. Still gotta get them shrinkwrapped, somehow. And it'll cost money to do so.
The bottom line is that it'll cost money whether the printing is done inhouse, or with a print shop. But with the printer, they can get it done much faster, and professionally too.
[This message has been edited by Ecchifan (edited 05-10-2005).]