Pricing Items Like DVDs Low to Sell Quickly Prevents Accumulation

Although we have shown the robustness of the sales velocity effect across different products and explored its boundaries, future work should test whether the sales velocity effect is diminished in the presence of price and actual monetary loss, similar to the incentive-aligned studies (Miller et al.

The FTC alleged in its case against American Entertainment Distributors, Inc., that the defendants – five companies and five individuals – deceived consumers into paying $28,000 to $37,500 apiece for video rental vending machines by telling them they could expect to earn between $60,000 and $80,000 a year, or recoup their initial investment in six to 14 months. In fact, according to the FTC, the defendants had no reasonable basis for their claims and all investors lost money.

Not only because the platforms would remove what I wanted (movies and shows), but (at least in terms of music) literally a platform change meant that I would “buy” the music, but not really buy it, and therefore, since they decided to change how they did things – I lost my money and no longer owned the music, because I never actually bought it in the first place. My wallet disagreed. That was enough to sour me on this whole thing. Plus, DVDs are so much cheaper in the end and you actually OWN them.

Sentimental value doesn’t translate to resale value, unfortunately. Pricing too high based on what you originally paid is the fastest way to have your listings sit unsold for months.

Now, even Goodwill doesn't accept VHS anymore (except for Disney). So, if you want an analog title of a film that is not on Laserdisc, you have to get Beta or VHS. More and more, this and other listing sites are the only place to do that.

Finally, don’t underestimate bundling. A labeled bin of “Movie Night Favorites” feels like a deal, even at $20, while 10 separate $3 listings might sit unsold for weeks.

Businesses clinging to aging products experience turnover deterioration as old goods accumulate while new offerings fail to materialize. Pricing directly impacts sales velocity and therefore inventory turnover.

Sales velocity and inventory velocity inform and impact one another, and both play an important role in adding data to business decisions.

It is likely that some DVDs will become collectible over the next few years but the majority of them will not be worth collecting. Since there have been millions or billions of DVDs produced they will likely not be scarce anytime in the near future.