The DVD selling and rental business is continually undergoing changes. Competition can be cutthroat, and the big companies like Netflix, and the like, can easily bring business down because of competitive pricing. To succeed in the DVD retail or rental business, you need to buy DVDs at a very low per-unit cost. To do this, it’s best to buy wholesale DVDs and buy these in bulk. This way, you get a big discount, ranging from 50% to 90% plus for each disc.
- Talk to stores and merchants that have a specialization in liquidating. A store that is closing or moving locations might have to liquidate large amounts of inventory. These will usually sell DVDs in bulk to liquidating companies. These can offer very low prices per “lot” or pallet of discs, which can give you a very low per-unit cost.
- Talk to movie stores. These usually clear out their inventory every quarter. Try to negotiate wholesale prices with the owner or manager. You can offer to buy old stocks of DVD movies at big discounts, and you can even negotiate to get new movies for a small discount.
- Try focusing on niche DVDs. Blockbuster and bestselling DVDs can go down cheap, as there is big demand for them. However, some audiences like niche films, like those that can only be watched at film festivals, or foreign titles. You can also focus on targeted niches, like children, anime lovers, and the like. For example, if you want to focus on anime cartoons, you can get in touch with distributors or manufacturers straight from the studios in Japan, like TNK, Toei, and Bandai, among others. Ask if you can be a distributor or wholesaler in your region.
- You can also try online auction sites like eBay. Some companies sell their unused inventory or excess stocks here, to reach a wider audience.
When buying wholesale DVDs, you will need to provide certain pieces of information. For example, some companies might only sell to businesses, so be prepared to show a business registration and some identification. Some might ask you to simply submit an ID.
In most cases, your biggest requirement would be upfront money. Buying in wholesale might be a lot cheaper than buying each item at retail prices. However, you still need to pay a hefty initial amount. However, think of it as big savings, when you add up everything. If you can buy a DVD for about $20 retail, many wholesalers can sell you the same item for about $2 each or less. So for a total of 200 DVDs, you only get to spend about $400.
It’s up to you how to recoup this investment. You can either sell each item at retail prices online or offline. You can also run a small rental business, with a niche audience in mind. Remember that price-based competition is tough, but if you can offer value-added services to your customers, or if you can offer niche DVDs that no one else sells or rents out, then you can earn from these.