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Profiting from New Release DVDs
From: Brent Crouch
Monday, 8:06 p.m.
The wholesale price of new release dvd's is the driving force that propels many sellers to purchase every single dvd wholesale list they can find. Many have already found the largest dvd wholesaler, but are convinced there must be some other secret dvd supplier out there.
I admit, I was just as shocked as anyone to discover the wholesale cost of new release dvd's. We all have some expectation that new release dvd's must be available at a very low cost. Otherwise, how would so many sellers on ebay be offering them for a few dollars each?
NEW RELEASE DVD'S ARE AT A PREMIUM
My research has proven to me that new release dvd's are high demand no profit titles. If you will research the auction of ebay's top dvd sellers, you will not find any selling new releases. The reason is simple. There is so much competition for new release dvd's, there just isn't any money to be made selling them.
There are several important reason why an item as popular as a new release dvd would yield no profit to a dvd seller.
1. Unless you have millions of dollars to spend, you have to buy your new release dvd movies from one of the three main dvd suppliers in the United States. For the huge box stores like Wal-mart, they have enough volume to buy directly from the studios. They are able to bypass the middle man and buy these movies at the same cost paid by the big distributors.
Typically, these huge box store will advertise new release dvd's at cost. They simply use them as a loss leader to get buyers in their store. They know if you come in to buy a new release, chances are you will buy other items they will make a profit from. This is why you will find Wal-Mart will sometimes have new releases cheaper than we can buy them from one of the dvd wholesalers.
2. The second reason is new release dvd's are not just in demand with the public, they are in demand with the bootleggers as well. A bootlegger can make a new release dvd with the cover art for as little as .50 each. These illegal counterfeits usually go on sale before they are even officially released to the public.
You can't compete with a bootlegger that is creating movies on a computer for .50 each.
HOW DO EBAY SELLERS SELL NEW RELEASES SO CHEAP?
1. A lot of sellers are actually buying new releases at Wal-Mart and reselling them on ebay. This is not my method of choice. I just avoid new releases altogether. But I have ran into several sellers so intent on selling them, this is the method they use.
2. Some of the big sellers may be using them as loss leaders like Wal-mart. If you were selling 10,000 dvd's a month you were making money from, you could afford to sell 100 - 200 new releases at cost.
3. I'm of the opinion that a very large portion of the new release dvd's available on ebay are counterfeits. One of the giveaways are dvd auctions that include any of the following in the description: DVD-5, import, doesn't include the case, shipped in plastic sleeves, shipped from China, Philippines, Malaysia, or some other third world country.
DON'T WASTE YOUR TIME ON NEW RELEASE DVD'S
The large suppliers in my directory will offer you new release dvd's. These are the same distributors that supply new releases to all the dvd rental stores. So they are available if you are set on selling them. However, I would encourage you to focus on picking profitable titles you can use to start and grow your dvd business.
About the Author: Brent is the owner of Jillian Entertainment. He has spent the last 3 years teaching others how he took his startup business to over 1.5 Million Dollars in revenue selling CDs and DVDs.