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Why Can't I Make Money With New Release Dvds?

By: Brent Crouch

The wholesale price of a new release DVD is what makes a majority of sellers purchase every DVD wholesale list they can. For the most part, they are already using the largest DVD wholesaler there is, but they have convinced themselves that there is a top secret wholesaler out there that will get them an even better price on a new release dvd.

I admit, I was just as shocked as anyone to discover the wholesale cost of new release dvds. We all have some expectation that new release dvds must be available at a very low cost. Otherwise, how would so many sellers on ebay be offering them for a few dollars each?

NEW RELEASE DVDS ARE AT A PREMIUM

My research has proven to me that new release dvds are high demand no profit titles. If you will research the auction of ebay's top dvd sellers, you will not find any selling new releases. The reason is simple. There is so much competition for new release dvds, there just isn't any money to be made selling them.

There are several important reasons why an item as popular as a new release dvd would yield no profit to a dvd seller.

1. Unless you have millions of dollars to spend, you have to buy your new release dvd movies from one of the three main dvd suppliers in the United States. For the huge box stores like Wal-mart, they have enough volume to buy directly from the studios. They are able to bypass the middle man and buy these movies at the same cost paid by the big distributors.

Typically, these huge box store will advertise new release dvds at cost. They simply use them as a loss leader to get buyers in their store. They know if you come in to buy a new release, chances are you will buy other items they will make a profit from. This is why you will find Wal-Mart will sometimes have new releases cheaper than we can buy them from one of the dvd wholesalers.

2. Bootleggers are the number two reason why it is so hard to sell new releases. What they do is illegal, but they can sell a new release complete with cover art to the consumer for less than $5 dollars. The fact of the matter is that you cannot compete with someone who can sell a new release DVD for less than $5. They also get the movies out to the public before the DVD is even officially released.

Bootlegging is illegal, and there is no way that you can compete with a new release DVD that is made for $1.50.

HOW DO SOME EBAY SELLERS SELL NEW RELEASES SO CHEAP?

1. A lot of sellers are actually buying new releases at Wal-Mart and reselling them on ebay. This is not my method of choice. I just avoid new releases altogether. But I have ran into several sellers so intent on selling them, this is the method they use.

2. Some of the big sellers may be using them as loss leaders like Wal-mart. If you were selling 10,000 dvds a month you were making money from, you could afford to sell 100 - 200 new releases at cost.

3. I'm of the opinion that a very large portion of the new release dvds available on ebay are counterfeits. One of the giveaways are dvd auctions that include any of the following in the description: DVD-5, import, doesn't include the case, shipped in plastic sleeves, shipped from China, Philippines, Malaysia, or some other third world country.

DON'T WASTE YOUR TIME ON NEW RELEASE DVDS

In my directory will see suppliers that offer new releases. Keep in mind that these are the same suppliers that supply dvd rental stores. A new release is available for your purchase if you really want to sell them, but take my advice and avoid them altogether. Try focusing on selling DVD titles that are big sellers and offer a great profit.

Brent is the owner of Jillian Entertainment. He has spent the last 3 years teaching others how he built a 1 million dollar business buying dvds at wholesale prices and reselling them for profit.



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