I'm not suggesting the retailers are to blame (mostly) - the model that casues them to charge upwards of $80 for a game that should cost $60 is the problem. The publishers take a cut, there are shipping charges to Australia, the local distributer takes a cut... too many middlemen + not enough population in Aus
Years ago my mum owned a video store and would pay about $75 for a new game - I presume this is pertty similar these days for retailers, I know JB Hifi sells games at vaguely around cost price, occasionally below.
Someone who has an idea of how retail works in this coutry!!
You are correct, far too many middlemen, with huge markups. (I can actually speak in context here as I have been a salesman for both retail and wholesale in my industry)
As I said, I work in a niche market and lets just say that the owner of my shop drives a Magna, my old boss (the supplier) drives an F430......
Add to that the fact that there is only ONE distributor for brands in my market, and that it is illegal for me to import my own products and my prices are bound by what I pay the supplier, and then overheads.
The amount of times I have been asked today "why dont you have 40% off sales like Myer?" is ridiculous.
I dont have 100% markups, and I would suggest that the VG retailers dont either. So they will do a sale on a game as their supplier slashes the stock to make room for the new game etc...
The consumer thinks they know everything about pricing, but in reality they are just looking for the best deal, and they dont care who they bag off on the way....... unless they need your help.
At the end of the day it is about what is best for consumers and retailers, because a sale is an agreement between two parties, so both need to be happy.
Gerry is certainly stirring up something here, and that can only be good for Australian retail as a whole.