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Confessions of a Gamestop Manager
The site Consumerist has up a lengthy post from a former Gamestop manager, listing some of the sins, boons, pitfalls and promises perpetrated while he was on the job. Includes a discussion of the 'gutted' display game, pre-orders, the 'discount' card, trades, and lots of 'pro-tips' on how to get the most out of your Gamestopping experience. "19) Don't be afraid to sell things on your own! The going resell rates for any current games or accessories online is usually close to what we resell for. If its a much newer title and you don't mind listing and shipping it, you could make a small handful more selling it online yourself. Ebay and Amazon.com are obvious choices, but you may find other outlets that work for you."
The Gamestop trade-in business is based on on key tenet; we hardly turn down ANYTHING. For all the rage and screaming we take from people getting one dollar for years-old Madden games, you need to remember one key fact; we are taking in games that are often unlikely to EVER resell.
17) Outdated consoles are traded in every day. Almost every gamestop literally has fifty or more used Xboxes and Gamecubes in stock at any time. They do not sell and we get one at least every day, so they are worth very little. The new slim PSP is in much higher demand than the original, and so the trade-in value on the old model has since dropped. If you want the hot new version of anything, trade in as far before its release as you can stand so you can get the peak value.
in other words: we pointlessly hoard crap that we're not planning to ever resell, because we'd rather it go into a landfill than to actually sell it to people for what it's actually worth. I mean seriously - every game store I've ever seen has a huge stack of games they wouldn't give two bucks for if you brought them in, sitting in a bin, unsorted... and still priced at $30 each. I think they need to learn the meaning of the word "clearance".
Also, Don't lose your receipt and expect us to find records for you, it is quite difficult.
Our IT Structure Is Still Suck In The '70s.
Going to tackle this in reverse order. First, individual stores don't order games (disclaimer: I have never worked for EB/Gamestop, but I have talked with employees). Stores place pre-orders and other than that what they receive in their shipments is decided by someone in corporate. Presumably they have some sort of system, that probably involves big sweaty rolls of money from other large corporations being left in certain key CEO pockets, and possibly dart boards at some step to help determine exactly which games and what quantities will show up. As far as not making money on new releases that's not entirely true. They of course make profit off them, otherwise they wouldn't stock them, just like any other business. The key thing is that new games are not their most profitable item. They have essentially perfected a formula for squeezing the maximum profit out of each store that they possibly can. They start by reducing orders of new games to nearly the exact amount demanded. They do that by only carrying 1 or 2 new copies of any given game beyond what's pre-ordered. That ensures that they have enough on hand to meet the initial demand (assuming everyone pre-orders, and they probably order a certain percentage of the pre-orders extra to meet demand of those that didn't, say 10% of the pre-orders), but that they won't have many or any extra copies laying around. That's the initial investment, and they do make a bit of profit there. Where the big profit comes in though is in the re-sells. They give you something like $5 credit on a game that they'll turn around a re-sell for $40, that's 700% profit! That's why they want you to trade games in and buy used games, they make insane profit off each one. As for the strategy guides and accessories, those are just icing on the cake. They like to sell them of course, it's all profit after all, but the big bucks come from the re-sells. I'm what EB would consider a nightmare customer. I buy nothing but brand new games, rarely pre-order (unless I think it'll sell out, I'm usually right on that call to), and never buy guides or accessories. I also never trade in used games.
Curiosity was framed, Ignorance killed the cat.
"Care to explain then how my local EB took several times more orders for the collectors edition of Burning Crusade then it was actually getting?"
Two words:
Unsecured loan
That's right Sparky, your hard earned pesastas can go into a floating fund for 30/60/90 days, during which time the company in question makes interest off it for nothing, pays down higher interest loans, funds a corporate fly by of Strippers'r'Us World Domination Tour©, or any other thing they f*cking well please.
What's a little gamer angst when stacked up against that, eh?
Some days it's just not worth
chewing through my restraints.
That's funny, I got the impression that refusing to stock what I want to buy and insisting that I make reservations and wait/come back later was the perfect formula for driving me to online stores and putting their bricks and mortar store out of business. Why should I pre-order with Gamestop when Amazon will have it delivered right to me?
is competition good, or is duplication of effort bad?