DVD sales pricing

[forsteri]

I have no experience of selling other than of used items on Ebay over several years, to sell off my equipment.

Now I am about to sell a DVD (British Wildlife) that I have produced and had manufactured (1000 off) and although my main aim is to sell online (it is already on Amazon using the Advantage scheme and on my own website) I am looking for interested retailers - local shops to begin with.

Am I right in thinking the mark-up they will expect will be around 40% for small orders increasing to say 45% for orders of say 25 plus ?

Would they expect to pay for delivery on orders of less than 25 ?

I have had two orders for 15 at £7.50 each but forgot to say if VAT is included in that price (I am VAT registered). When it's added, their mark-up would be only 30% which I am worried they will reject. If VAT is inclusive in the 7.50 cost price then the mark up is 40%.

Some retailers are independent while others are chains (eg. many garden centres) so the margins must vary accordingly or are they in any way 'standardised' by the DVD industry ?

 

[Psl]

I couldn't tell you what retail outlet's terms are, but wouldn't you be better trying reach a deal with a specialist wildlife magazine to promote your DVD and you handle fulfilment and agree a revenue share?

 

[silvermusic]

Op, as the name suggests I deal in Music CDs and to a much lesser extent DVD, mainly music related DVDs.

On the DVD side, buying at £7.50 (£6.38 ex VAT) I'd be looking to retail them online at around £9.95 + P&P, Which gives me around 20% margin after costs such as PayPal/Google checkout. If i put them on ebay I'd need to add around £1 to the price to achieve the same margin.

As for margins in the DVD/CD industry, well you'll never get rich as a small dealer trying to sell the latest release/chart titles, I leave them to the big boys as unless you're buying serious quantities in the 1000's you'll never get the same trade price. I can buy that stuff on Amazon cheaper than trade, sad but true. The Only way I make money is by my knowledge of back catalogue, clearence and end of line deals from labels, wholesalers, etc. As a rough average I'm happy with 20% clear margin, some I make much more on others maybe less depending on what i can get from my many contacts in the trade built up over several years.

You might find yourself better off going to a smaller independant wholesaler who sells the kind of DVD title you have rather than trying to do it yourself. I've only a limited idea of what sort of margin they'd look for but it's certainly far less than a retailer as they're looking to buy/sell in far bigger bulk. PM me and I can give you the details of a wholesaler/distributer who I think could be interested.

As for delivery charges it's normally at cost for any order under £100 ex VAT. Over that it's free, that's pretty standard across most, although one I deal with sets it at £200 ex VAT. Stops the muppets as one dealer put it.

 

[oldeagleeye]

I think that the main problem that you have is justifying the £12.95 retail because punters browing in a shop for example wouldn't have access to your impreesive resume'. It is a problem many accomplised authors have too.

My suggestion then would be a bit of self promotion.

Invest in one of those roll up backdrops . They are very reasonanble at about £99 quid and then have a chat with the manager of your local W H Smiths about a small pitch by the entrance. Then get ready to personally autograph copies of the video offering to pay the manager 30% of every copy sold.

You only have to sell 10 perhaps 20 and your probably get an order from WHS for over 5,000 copies considering they have some 550 stores. With that sort of volume mate you have a hell of a lot of leeway on price.

Good Luck. Brilliant work.

Rob

 

[forsteri]

Thank you all for very helpful information and ideas.

I've just been offered "55% discount / SOR / no min order" by a specialist distributor supplying museum/gallery shops in London.

I've been discussing a deal with one long established special interest distributor and online seller offering me 65% discount. That gives him a £6.60 margin and leaves me with a £2.50 margin - I guess I must get some guarantee of how many he will order and sell.

Somehow I have decide whether to just sell direct off my own website (small numbers / highest margin), sell to shops (still good margin but more work for me) or sell to distributors and wholesalers. The answer is: all three I suppose.

oldeagleeye, is it really realistic to try and persuade WHSmith to buy direct from me ? I had assumed they would not have the flexibility to bother with a startup small fry like me and it might upset their regular wholesalers. Then again, buying in stock to sell at a profit is not rocket science.

 

[oldeagleeye]

Hi Stephen.

First the numbers that you mention seem about right and if you look at some of the royalties best selling novelists get they are even worse. Them's the realities of the commercial world however as opposed to the artistic world you come from.

You have to look at retailing this DVD from a commercial point of view and here the first thing I would ask is do you have an agent. If not you really ought to get one.

What I said about W H Smiths for example is typical of the sort of deal they should be getting you and yes I do believe they will go for it though they would probablt want you to do a dozen or so personal signings. Unlike some of the trendy book stores in London for instance it is not often if indeed ever you see a 'Celeb' signing books or DVD's at WHS in even the busiest of shopping malls.

BTW. Don't be shy on playing the Celeb card then. Being a great photographer/cameraman alone ain't what makes the public buy unless they are a true connoisseur on the subject matter. It is knowing that the author can produce interesting and quality work that is entertaining too and you have worked it seems with the main man himself David Attenborough - haven't you. His endorsement alone should open doors and when you get in have a bit of a game plan ready.

Press release in the local rag=sheet for a start. Give the newspaper half a dozen copies to give away in a sort of 'wild life at the back gate competition' . In return you a hell of a lot of free promotion and get a database of runners up too. Follow up with a simple sorry letter. A promise of a signed copy and 20% off.

Phase 2. Invite a reporter with a camera down on the day of the signing. Get a couple of mates too with cameras and get the old flashes going that will pull the crowds in around you and then I guarantee you customers will start buying. Some because they have a real interest in the subject. Others because 'wildlife' and nature is a trendy subject. Most I suspect will be parents of younger children.

In short Stephen you have to become just as much a commodity as D A in your field. As Eastwood and Pachino were in selling movies and you have your own unique skills. Do I see and illustrated book coming along about the Emporer Penguins in the Arctic wilderness of that you spent a year filminf for the BBC. A distinct possibility I would have thought.

Yet more free promotions in Wildlife magazines that may cost you about £10 quid in DVD's but bring you not tens of thousands of free promotion but hundreds thousands. After all the are I understand over 1200 wildlife and nature mags and I think that answers you question.

By all means use a wholesaler like WHS if your going to get publicity through signings or they will make a feature of the DVD but a wholesalers that wants to leave you with £2.50 and no min order frankly I would tell to get on their bike.

What do they expect you to do. Sit waiting for the post every morning so that you can dash off the odd copy at the PO every now and again.They want big discounts they run big promos or nought. Remember you a class act mate not another cheapy in the £1 shop.

Now I have taken the liberty of lifting the home page off your web site and posting it on here so that members of the forum can see what a great backdrop you would have for a signing. It just needs a bit of cut and paste of some other shots in my opinion but otherwise it looks damn impressive to me and I think other members will agree.

Hope the info helps too.

Rob



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[Gord]

It just needs a bit of cut and paste of some other shots in my opinion but otherwise it looks damn impressive

Agreed, and don't forget to find room for the David Attenborough comment. There is no stronger public endorsement of your skills.

Don't be shy on playing the Celeb card

In fact, If you've shared a hide with Bill Oddie or Kate Humble etc.. , maybe send them a copy ask them for feedback/comment ?

Great work by the way.( the videography & the website )

 

[oldeagleeye]

Stephen.

I have just realised that the Frozen Planet isn't out till next year. As a contributor on that mind the man from WHS don't rip your arm off shaking on a deal so dont sell too cheap. They get a 30% discount back on each one sold on a personal signing I would say and you could probably get around 20 around the M25 if you can make that.

What with generating other interest in newspapers etc I reckon that you could clear anything from £25,000 to £50,000 on that deal alone.

That is more than a best selling novelist earns on a hardback. Let me know if you wnt help on the promo to WHS then. It will cost you though.

Bag of ice I think and bottle of scotch to go with it.

Now waiting for the newsagent to open so that i can get me ciggies. I have just done a quick makeover on that backdrop to show what I and fellow member Gord mean.

The font on the credits is actully all wrong but your get the idea.

Rob
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[forsteri]

A lot to take in. Thanks again. It's quite a different world I'm heading into - one extreme to another having tried to perfect the art of NOT being noticed for so many years.

Concerned about use of the BAFTA and EMMY images of the awards - I'd have to get clearance on that to stay legal - and I worry there starts to be too much info on the page. I am a 'less is more' fan as so many websites are just so crammed with stuff but I guess it's ok as long as it's ordered and positioned by priority. I can well see I have got some of the wrong things prioritised on the arrival page. Still have a whole section to add - blog and expert tips/info type stuff, to get liked more by google.

Stephen