Replies to post #42964 on Signature Devices Inc. (SDVI)

[derek_rw20]

Maybe Reader Rabbit for the Iphone will be coming out soon. That could add to some numbers.....

SDVI

[RRSilverShadow]

I have worked in the retail industry arena for many, many years. I have been privy to many companies financial reports e.g. cost of goods sold & gross profit margins. I think it would be a close guess to estimate the cost to the retailer of a $19.99 video game at an average cost of approximately $17.00 per unit. That represents a 17.5% gross profit. The $17.00 that the distributor charges would be further reduced by their profit for getting the games into the market. The price that the manufacturer would ultimately end up with, is an unknown to me. Pure guess estimate after distribution and manufacturing costs...... $12.00 to $10.00 per unit.

Doesn't sound like very much but the video game industry works on tight margins and make their money on volume. The retailers will make money as they will be selling a lot of other game titles to add to their overall gross profit. IMO

go SDVI
go GRAFF


GLTA
RR

[zambono]

unknown but game sales were mostly Aces and the previous RR at 20,000 units each. One can estimate income of $10 per game sold. so $400K in game sales. SDVI