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Best Buy GCU is being Discontinued?


#481 Killbomb   The Misanthrope CAGiversary!   3496 Posts   Joined 9.8 Years Ago  

Posted 20 May 2018 - 01:31 AM

I'm honestly surprised that they don't just increase the price to $60 or whatever they deem necessary. 

I would gladly pay $60 for two years since it would still easily pay for itself within the first year.



#482 PandaJohnson  

PandaJohnson

Posted 20 May 2018 - 01:38 AM

Membership expires in a month. In the long run I’ll end up saying money, thus maybe living up to the title of cheap ass gamer. GCU lead me to actually buying more games on day 1 (especially if they were part of the 10 dollar pre order bonus). And due to the points Best Buy became my go to spot with electronics when if I just search a bit longer I could have found an item a bit cheaper else where. only became a elite plus member with GCU (4 years straight). I would say about just 500-800 dollars was in games. Will use family members target employee discount from now on.

#483 defpally   CAGiversary! CAGiversary!   1701 Posts   Joined 8.5 Years Ago  

defpally

Posted 20 May 2018 - 02:01 AM

I mean it's been stated multiple times in this thread that the margin on games is actually very small - Virtually non-existent after the GCU discount on a $60 game.  I'll have to look into that myself and see if it's the case, but GCU was never about maximizing profit by just upping the number of games sold at a slightly lower profit margin - Programs like that are designed to get people in the store and buying other items on their way to the register.  Or, getting someone to buy the membership who doesn't use it enough to balance out the cost of entry. 

Oh, since people mentioned it in THIS thread, it must be true! :)

 

Consoles don't make much money at all, and often are loss leaders.  Way back when I worked at EB in college, it was told to us that if we sold a SNES without an attached game and the customer used American Express it was actually a loss.  Games are where the margin lies, it has always been like that.  If the console margin is razor thin, and the games margin are razor thin, then why would ANY retail business deal with gaming at all?  Do the logic here.  They make a ton on games.  They make money on GCU games, maybe not as much as they would like, but they do (except for maybe big sales, like BF which is why they nixed that two years back).  No program would operate at a loss as long as this one if it didn't.  And they definitely would not have let it stack with other discounts (minus price match) from the beginning if it was a loss.

 

As far as how easy it is, the answer is in your post.  They had to outsource it to specialists because it isn't easy to do in house.  BB simply isn't set up for that sort of thing, it would be cheaper to just ride it out and as we agree, most people are done by early 2020.  Then you can just set an end date and deal with the people that renewed for a decade on a case by case basis.



#484 SmileyMcSmiles   Coulrophobia CAGiversary!   2329 Posts   Joined 14.0 Years Ago  

SmileyMcSmiles

Posted 20 May 2018 - 02:21 AM

Same.  In fact, I'd pay their original price of $120 or $130 ( I forgot).  Even at $130 for 2 years, it pays itself off for me personally.  Maybe not all. 

 

Know what?   They should create optional membership tiers with varying perks that suit varying gaming demographic.  Those that want more savings will commit to buying more as they are more hardcore gamers, and hence better perks.  For casual gamers, less perks, but a cheaper membership price. 

 

Gotdammit! I should be spearheading this department for BBY....

 

...I've been drinking. 

 

...Tequila if you're wondering.

 

...Petron Silver if you're also a fan.

 

:beer:



#485 bojay1997   CAGiversary! CAGiversary!   5911 Posts   Joined 14.8 Years Ago  

Posted 20 May 2018 - 02:21 AM

Oh, since people mentioned it in THIS thread, it must be true! :)

 

Consoles don't make much money at all, and often are loss leaders.  Way back when I worked at EB in college, it was told to us that if we sold a SNES without an attached game and the customer used American Express it was actually a loss.  Games are where the margin lies, it has always been like that.  If the console margin is razor thin, and the games margin are razor thin, then why would ANY retail business deal with gaming at all?  Do the logic here.  They make a ton on games.  They make money on GCU games, maybe not as much as they would like, but they do (except for maybe big sales, like BF which is why they nixed that two years back).  No program would operate at a loss as long as this one if it didn't.  And they definitely would not have let it stack with other discounts (minus price match) from the beginning if it was a loss.

 

As far as how easy it is, the answer is in your post.  They had to outsource it to specialists because it isn't easy to do in house.  BB simply isn't set up for that sort of thing, it would be cheaper to just ride it out and as we agree, most people are done by early 2020.  Then you can just set an end date and deal with the people that renewed for a decade on a case by case basis.

Not sure why you're arguing about this so aggressively.  I used to have access to distributor pricing lists up until a few years ago, and I can tell you that the margin on games is razor thin.  Hardware margins are low too, but at least a retailer can attach a warranty or sell accessories like high margin cables or controllers or other items that can generate some additional profit. 

 

Retailers continue to carry games because they can be sold in large volume and most retailers today have lots of product categories so in the aggregate, Target or Best Buy or Walmart can make a healthy profit on things like cables or snacks and they don't have to rely on lower margin items like games alone.  It's the retailers that focus on a particular product category such as Gamestop that are most at risk and it's why they have focused so heavily on used product with larger margins, as well as collectibles that carry a substantial margin.  As others have mentioned, Best Buy employees are given a discount that is actually worse than GCU and Best Buy has always claimed that their employee discount is just above their cost.  So, you can believe what you want, but if GCU was profitable, there is no way BB would be ending it.  They know their game sales volume is going to collapse and they simply have done the math and determined that it's just not worth it anymore.   



#486 shaner25   CAG Veteran CAGiversary!   12 Posts   Joined 9.0 Years Ago  

shaner25

Posted 20 May 2018 - 03:00 AM

After a game has been out for a while, it often drops to $49.99 or $39.99 or even $24.99.  Does Best Buy have to pay more for a game when it's first released and then pay much less for the same game later?  Because that's the only way they could be making small profits at $60 and then later able to make any profit for the same game at $24.99.



#487 Omni99  

Posted 20 May 2018 - 03:24 AM

After a game has been out for a while, it often drops to $49.99 or $39.99 or even $24.99.  Does Best Buy have to pay more for a game when it's first released and then pay much less for the same game later?  Because that's the only way they could be making small profits at $60 and then later able to make any profit for the same game at $24.99.

I think on those early sales at least the publisher or whoever gives them credit for the sale price.



#488 Confucius   Corporate Shill CAGiversary!   16273 Posts   Joined 10.5 Years Ago  

Posted 20 May 2018 - 03:30 AM

Can people kindly STFU that games make a lot of money. They do not. End of discussion. You’re just making yourself sound silly.

There was one idiot on here that insisted games cost $5 wholesale.

#489 IronChariot   In My Country There Is Problem CAGiversary!   3042 Posts   Joined 9.9 Years Ago  

IronChariot

Posted 20 May 2018 - 03:34 AM

The Gamers Club is the only club I've ever been involved in, and that all ended thanks to the Geek Squad kicking me out. I guess they finally had their revenge. 



#490 w00dm4n   CAG Veteran CAGiversary!   176 Posts   Joined 9.1 Years Ago  

Posted 20 May 2018 - 03:39 AM

im good til 9/19

 

I mean other than Switch games like Smash I don't see the point of GCU.

 

as soon as you buy a game day 1 it's usually on sale 2 weeks later for $40.

Most Nintendo first party games rarely drop in price.

 

i knew the Best Buy website redesign was holding a dark secret



#491 SmileyMcSmiles   Coulrophobia CAGiversary!   2329 Posts   Joined 14.0 Years Ago  

SmileyMcSmiles

Posted 20 May 2018 - 03:41 AM

Can people kindly STFU that games make a lot of money. They do not. End of discussion. You’re just making yourself sound silly.

There was one idiot on here that insisted games cost $5 wholesale.

Thank you, friend.  :-$



#492 spicoli420   CAGiversary! CAGiversary!   827 Posts   Joined 8.7 Years Ago  

Posted 20 May 2018 - 03:47 AM

Lame........was in need of a renew and was dragging my feet. I did however preorder most upcoming titles that I am interested in so at least I have that going for me. 

 

On a side note, somewhat related.......I ordered 2 copies of state of decay 2 during one of those buy 2 get one free offer. The order total is $104.33, but that was before the price drop of state of decay 2. So I'm wondering how this will work itself out. Will it automatically go down to 29.99 plus the additional GCU discount since I had it at the time of purchase? I suppose time will supply the answer. So bummed that state of decay 2 is not being received well. 



#493 zaxxon2000   CAGiversary! CAGiversary!   236 Posts   Joined 8.7 Years Ago  

zaxxon2000

Posted 20 May 2018 - 04:40 AM

If B.B. has no GCU then they could put a sale price on a new release. ........ forget it.

#494 srac84  

Posted 20 May 2018 - 04:50 AM

id imagine whats going to happen is no more gcu but more preorder gift card deals and rz certificates like before..in regards to pricing...we'll just get sales like everywhere else just no 20% on top of it..sucks but for me at least i don't buy games day 1..so it's not a big deal



#495 hedliniv   CAG Veteran CAGiversary!   61 Posts   Joined 12.0 Years Ago  

hedliniv

Posted 20 May 2018 - 05:04 AM

FYI - if your GCU expires Before your preorder’s release date - the GCU discount goes away. My GCU expired last year and I had some amibos preordered and when they shipped it was at full retail price. It was a big pain in the ass...

#496 Confucius   Corporate Shill CAGiversary!   16273 Posts   Joined 10.5 Years Ago  

Posted 20 May 2018 - 05:04 AM

Looks like they shut down the benefit entirely, not just not being able to buy it. Deadpool is 19.99.... and that’s it.

#497 abbabaab   CAG in Training CAGiversary!   1901 Posts   Joined 5.8 Years Ago  

Posted 20 May 2018 - 05:07 AM

Looks like they shut down the benefit entirely, not just not being able to buy it. Deadpool is 19.99.... and that’s it.

The discount only shows up in cart now.



#498 Acash  

Posted 20 May 2018 - 05:07 AM

Looks like they shut down the benefit entirely, not just not being able to buy it. Deadpool is 19.99.... and that’s it.

Just check Deadpool is $14.99 with GCU

$14.99 is the Deal of the day and shows up as $11.99 with GCU



#499 roguejedi5   CAGiversary! CAGiversary!   1552 Posts   Joined 14.3 Years Ago  

roguejedi5

Posted 20 May 2018 - 05:10 AM

I didn't really bought alot of day 1 games last year and it doesn't look like that this year either so it doesn't hurt me that much.  But what really hurts was when they took GCU off of black friday   :shame:  That was the best time for me to buy games for myself and for my friends & family.  



#500 DemonGamer24   Sniper, no sniping! CAGiversary!   231 Posts   Joined 11.2 Years Ago  

DemonGamer24

Posted 20 May 2018 - 05:11 AM

Deadpool shows up in cart at $12 for me...

#501 IronChariot   In My Country There Is Problem CAGiversary!   3042 Posts   Joined 9.9 Years Ago  

IronChariot

Posted 20 May 2018 - 05:59 AM

Best Buy giveth, and Best Buy taketh away.

#502 udis   CAG Veteran CAGiversary!   34 Posts   Joined 11.9 Years Ago  

Posted 20 May 2018 - 06:19 AM

After a game has been out for a while, it often drops to $49.99 or $39.99 or even $24.99. Does Best Buy have to pay more for a game when it's first released and then pay much less for the same game later? Because that's the only way they could be making small profits at $60 and then later able to make any profit for the same game at $24.99.

I would think it's just like anything else sales #s start dipping and the publishers are going to offer discounts to their distribution partners which gets passed along as a lower price to us. This sucks I've had it since PS4 released my sub is running out sometime this oct or November. I've been elite since then that's over now that the discount is going away!

Sent from my Nexus 6 using Tapatalk

#503 SmileyMcSmiles   Coulrophobia CAGiversary!   2329 Posts   Joined 14.0 Years Ago  

SmileyMcSmiles

Posted 20 May 2018 - 06:25 AM

So I had 514 Reward points, enough for a $10 off cert.  I tried to cash it out and it started giving me errors.  I clicked on the "Try again" link, and it cashed it out as only $5. 

 

...awesome. 



#504 thesuzukimethod   i am a cracked machine. CAGiversary!   541 Posts   Joined 7.5 Years Ago  

thesuzukimethod

Posted 20 May 2018 - 07:57 AM

odd circumstances.  the 20% discount tipped me to buy physical when i might have otherwise just bought digital.  so all things equal, i'll be buying fewer physical games from bbuy now.  they must have run the numbers on this, 

 

although now that they do the $10 bonus on some digital games, i almost prefer that (especially now that my ps4 drive is getting finicky).



#505 thesuzukimethod   i am a cracked machine. CAGiversary!   541 Posts   Joined 7.5 Years Ago  

thesuzukimethod

Posted 20 May 2018 - 08:12 AM

someone probably posted this but i'm not digging through 50 pages to find out (sorry):

 

article raises a really good point i've wondered about myself.  

 

http://www.newsweek....ruggling-935477

given rise to speculation that certain game publishers don’t look too kindly on retailers undercutting suggested retail pricing on hot products. After all, if a game like Detroit can be purchased on Amazon for $47, why would anyone purchase a digital version on the PlayStation Network for $59?

It’s unclear if the end of Gamers Club Unlocked has anything to do with this silent retailer feud, but any pressure from prominent distributors certainly wouldn’t bolster the program’s internal viability.



#506 Kaiser499   Gaming Guru CAGiversary!   3901 Posts   Joined 9.4 Years Ago  

Posted 20 May 2018 - 08:37 AM

someone probably posted this but i'm not digging through 50 pages to find out (sorry):

 

article raises a really good point i've wondered about myself.  

 

http://www.newsweek....ruggling-935477

given rise to speculation that certain game publishers don’t look too kindly on retailers undercutting suggested retail pricing on hot products. After all, if a game like Detroit can be purchased on Amazon for $47, why would anyone purchase a digital version on the PlayStation Network for $59?

It’s unclear if the end of Gamers Club Unlocked has anything to do with this silent retailer feud, but any pressure from prominent distributors certainly wouldn’t bolster the program’s internal viability.

 

It would explain why Sony's games have been unavailable on Amazon lately.



#507 argyle   Mr. Lucky CAGiversary!   6395 Posts   Joined 14.8 Years Ago  

Posted 20 May 2018 - 09:10 AM

Sucks, but no huge surprise. I mentioned in another thread here a couple months back or so that my BB's game dept. looks more like a toy story these days (far more than even Gamestop does). The shelf space dedicated to actual games is laughable.  

 

Heck, my local Target is going through a major store redesign right now and they've shrunk their game section by at least half, maybe a little more. All of this can be chalked up to the rise of digital, which really sucks IMO. 



#508 PenguinMaster   Sacrilicious CAGiversary!   3845 Posts   Joined 14.1 Years Ago  

PenguinMaster

Posted 20 May 2018 - 09:33 AM

im good til 9/19

 

I mean other than Switch games like Smash I don't see the point of GCU.

 

as soon as you buy a game day 1 it's usually on sale 2 weeks later for $40.

Most Nintendo first party games rarely drop in price.

 

i knew the Best Buy website redesign was holding a dark secret

Which would make it $32 with GCU. GCU works on sale prices as well unlike Amazon Prime's 20% discount.

 

I rarely buy games at launch but get plenty of use out of GCU.



#509 ck0  

Posted 20 May 2018 - 10:42 AM

someone probably posted this but i'm not digging through 50 pages to find out (sorry):

article raises a really good point i've wondered about myself.

What exactly is special about this newsweek article that keeps getting posted? Besides a blatant attempt to give them clicks?

There are no revelatory bits of information to be gleaned from there. It is just speculation. Stop giving them clicks.

#510 smallsharkbigbite   CAGiversary! CAGiversary!   251 Posts   Joined 9.7 Years Ago  

smallsharkbigbite

Posted 20 May 2018 - 11:22 AM

What exactly is special about this newsweek article that keeps getting posted? Besides a blatant attempt to give them clicks?

There are no revelatory bits of information to be gleaned from there. It is just speculation. Stop giving them clicks.

To be fair, other than GCU ending, all these forum pages are speculation.  It's likely the margins for Best Buy weren't huge, but until someone posts a contract that Best Buy had for buying games it's speculation that they lost money with GCU.  I mean I'm glad some unnamed person had access to distributor pricing for some unnamed company and they claim that makes them an expert.  But Best Buy likely has better rates and a few percentage points difference can make a world of difference between a profit and loss.