Yoyo Retail?


#1

What’s up everyone, so the other day I watched the Slusny history video, and it made me wonder, how do companies like Slusny, and YYE, get all those yoyos to sell. I was just wondering if you have to get a hold of the other companies and ask to sell their product or can you just order in bulk somewhere kind of like a yoyo Costco. If anyone knows or thinks they know how they do it let me know.


#2

I would assume they buy wholesale directly from each individual company.


#3

Normally, the retailer buys the product directly from the manufacturer. They mark-up the price and sell to you and me on the internet. Hype and forums like this help to drive sales to consumers.


(InvaderDust) #4

yep. They buy wholesale at buyers cost, they will apply certain markup, usually between 2 to 3 times the cost to make for sale to the public. Very simple retail aspects. Every store does this. Some markups are INSANE!!! Like movie theater popcorn. The price for them vs the cost for us is in the thousands of times markup.

Here i am going to wildly speculate on their behalf…

So if they buy a Shutter wholesale, it may cost the business 25-30 bucks a pop. To cover shipping, overhead (employee labor costs, building rent, water/electric bills, website design and management, etc), and still be able to make a little bit of money after they may turn that 25$ investment into a 50$ product to sell at a 2x markup. They might get to keep 10 bucks if that (likely not that much) after the sell. This is “the way its done” in retail the world over.

I always wonder about car lots. It may not take a while lot for someone to come up with a grand or two for a small startup investment, but car dealers have sometimes millions of merch on their lots. I doubt they paid for those the same way we do for yoyos and toys.


#5

Cars are “allocated” to the dealers. Acquiring the dealership and the right to buy cars from the manufacturer is what is expensive.
Dealerships do not pay for cars at time of delivery. The actual differred cost to the dealer is a very complicated thing because of allocation, dealer-incentives, customer cash-back, financing rates and carry and delivery costs (much more in Alaska and Hawaii than in New York). Many times more complicated than yo-yo retail I would guess.