Quote:
Originally Posted by CliffFletcher
I understand what the Sentry Box is doing. But it does irk me to see stock they bought when the CDN dollar was 0.89 to 0.99 US marked with the US price band. They're not simply passing on their increased costs at that point.
|
I'm not exactly sure why I'm defending a company that I directly compete with... but the last time the Canadian dollar was at even .89 cents US was mid 2013. It hasn't been 99 cents since mid 2011. No one purposely has stock since 2013, let alone 2011, still around. If they do, it's being sold at below cost to just get rid of it (or it should be). That is the definition of dead stock.
The box is huge store, but the products they sell are also quite bulky. Say they sell 5 copies of Settlers of Catan every week. That's 260 a year. Since mid 2013 that's 650 copies. Try to do the math of how much space 650 copies of Settler of Catan takes up. It would fill an average house top to bottom. And that's just one game. There are like 7 different Settlers of Catan variants alone.
Assuming they are like most game and comic retailers, they get weekly shipments. Everything on those shipments is imported, as virtually no games are made in Canada. And even if they were, they're being distributed by US distributors, so they are priced in USD anyway. So their cost on any copy of Settlers in the store is taking into account the exchange rate of at least the last month or two. And if they buy copies today at 1.48 exchange or whatever it is, and the dollar actually improves, then they will be selling them at 1.35 or whatever the price improves to, until they move through those copies and get more at the new price.
Oh, and BTW, we here at Phoenix Comics are only charging 1.35% exchange this week, despite the fact we are paying significantly more than that. Just in case anyone is curious.
