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Author Topic: Percentage of purchases to income on rentals?  (Read 442 times)
centervideo
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« on: August 01, 2003, 01:57:03 PM »

I was curious how much other stores spend on the average week for new movies compared to there rental revenue for the week.  

Ex.  I spend about $500 dollars a week on new DVD's and my rentals are about $1300 per week on DVD format. 250%  ROI

However, VHS is about $500 a week spent and I rent aprox. $800 dollars per week.  80% ROI

Are there any figures available that show an industry standard?  I'm trying to figure out what my store might be capable of doing.  Is this a good ROI or is it it low or high.  To me it seems that i should be able to order more DVD's and increase my sell-thru.  

Just looking for input, or ideas on how others #''s compare to this.
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Hardcopy
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« Reply #1 on: August 02, 2003, 10:28:04 AM »

Interesting question. I am not really sure. VHS doesn't do nearly as well as DVD's that is for sure. Our investment in VHS's is significantly lower (varies from week to week so I am not sure exact numbers). I would say your numbers are pretty close, but it has a lot to do with your area.

We had a surge in DVD's the moment Walmart decided to put a dvd player for $49 every day price.
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