Ahh….Holiday Price Wars

So if you have not heard yet, there have been some quality price wars going on with some of the top internet retailers that are looking for your business.  Amazon, Walmart and Target are all slashing prices on pre-ordered books and now DVD’s.  That is right, we said DVDs!  Walmart started it first with the ability to pre-order DVD’s for only $9.98 with free shipping, which is a substantial savings from the usual $30 price tag that DVD’s carry when they are first released.  These dvd’s are not old movies either, they are the new Harry Potter and Star Trek to name a few.  Not to be outdone, Amazon mark their pre-orders down to only $10, but you only get free shipping if you have an order over $25.  Target followed with $10 pre-orders and free shipping.  You can get these on their respective websites, so if you are a consumer looking to pre-order new releases, you might want to get out and do it now.

Now price wars are great for the consumer, but what happens to the small businesses that are trying to capture the same target audience as these larger retailers.  Well, in a few words, it puts them out of reach.  There is no way that most small to medium sized businesses that sell new DVD’s can keep up with the large retailers and their crazy price cuts.  The only thing that a business can do is to create a value-proposition to make their customer stay with them, like free overnight shipping or better customer service.  You have to be creative in order to keep the business on your side when you are dealing with insane price cuts in the industry.  Good luck to all retailers during their 4th quarter sprints!

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