There have been a few posts on here recently asking about setting up accounts with the official distributers for Playstation (Centrsoft) and Xbox (Gem). I thought I would put together some guidelines that may be of use to anyone looking to get into the industry.
First I think its important to point out the following;
Just because Gem & Centresoft are large UK distributers, this does not mean thay are the cheapest. All it means is they are able to supply the volume required by a large retailer/etailer. So if price is your primary concern you may be barking up the wrong tree. If volume is what you are after then its worth setting up an account.
Many of the large online stores such as Zavvi, The Hut, Woolworths, HMV etc. (even some of the larger suppliers on ebay) all send out products (under £18) from warehouses in Guernsey, Jersey or Switzerland. All are exempt from paying VAT and therefore are able to offer more competitive prices. Even then margins are small. It is not because they buy DVDs & Games for £1 and sell them for £9.99. If you are looking for a supplier who is able to offer new releases for a few quid, i'm afraid they dont exist.
Keep an eye out for promotional titles, (Most of the large high street and on line retailers wil have these on promotion, i.e. Feel Good Movies, The Warner List, Disney BOGOF, BBC TV Series' etc)....have a look...... Most of the large suppliers will have access to most if not all these promotional. This is where the money is. Not in new releases as most people think.
Many of the suppliers that i deal with or have dealt with, (Large or Samll) sell titles are pretty much the same price. The only difference is you often get a much more personal service from the smaller suppliers. The larger distributers will nearly always look after the companies who are turning over millions a year before they will look after the humble ebayer or market trader who is only going to spend a few hundred pounds a month.
Opening an account....What's needed.
In Gems own words, this is what they require for you to open an account, and this is pretty standard across the industry.....
Quote:
In order to open an account with Gem you need to be an established retailer with your own retail outlet or an internet retail site. You must also be over 18 and this should be your full time occupation. We cannot open accounts if you have not secured the premises for the shop or if your website is still under construction.
All applications require a business landline number and business bank account as well as trade references.
We are unable to provide pricing information prior to your account being opened.
In order to proceed with your request to open an account with Gem please can you complete the form below answering all questions fully. Once your account is open orders must comply with our terms and conditions and are subject to minimum order quantities.
If you intend to sell online please make sure you give details of your website address, we do not accept applications from people who trade solely via auction sites e.g. EBay and Amazon Marketplace.
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My advice?...
Well I would advise anyone who is just starting out to find 2 small suppliers, build up a strong relationship with them. Find a supplier that has terms that suit your business rather than trying to chase the best price.
When your ready to expand, and think you need a much larger supplier, THEN contact Gem/Centresoft.
Whatever you decide. Good Luck
Guidelines for opening an account with a Video Games Distributer.
and I totaly aggree with Craig these guys certainly arn't cheap if you are a new customer, but once you get into a higher bracet of spending they can start offering you better prices and deals.
Linear Mode
November 2009
