Is the age of discounts over?

[Mark CMG]

According to some studies I saw earning my MBA (back in 2003-2005), Gen Y already has more spending power than Gen X, despite most of them still being under age 21.

While most of their personal income is in cash, they've proven to be quite adept at getting their parents to buy things online.

I'm just stating facts- despite 75% of them not actually owning credit cards, Gen Y-oriented purchases equal Gen X purchases.

Is this borne out by your experience in the entertainment industry, as well?

 

[JustinA]

Well, to put it in perspective, I live in St. Louis City. Everything in the universe is within a half hour drive. The most FLGS is at the outer edge of that. I think even Six Flags is closer to me than an FLGS. So, if I'm going to drive an hour round trip somewhere (and it's not even somewhere I normally do errands, since all of that is closer or in different directions), I want it to really justify the drive. A one-time visit there is ok... but ordering something is a royal pain, because it means I need to make a second trip there when Amazon will drop it off by my door.

And if we're talking about cost, let's talk about the cost of gas for such a trip...

 

[Banshee16]

Provincial Sales Tax (PST) and our national Goods and Services Tax ( GST) are mandatory - and are enforced - on all internet purchases.

For most commercial purchases, this means they are always taxed, no matter where purchased. Goods bought in the USA will still be taxed by Canada Customs. If you used a courier like UPS or FedEx - the courier will charge you both the taxes and a hefty handling fee ($30+) for collecting this piddling tax, too. If there are duties on the product (as happens with goods bought from the USA which were, in fact, manufactured elsewhere and thus not exempt under NAFTA) the duty on that product is collected as well by the courier.

If the article is mailed via the US Postal Service, then it is delivered here by Canada Post. Again, the post office collects the tax before you get the parcel. While small purchases and those marked gifts (if they appear to be fairly cheap) are frequently let through untaxed, for the most part on even small commercial purchases - the tax is actively collected by Canada Post . This is so whether you want to pay it or not. It is NOT an the "honour system".

So yes - sales taxes are always levied for all intents and purposes. PST varies province to province, but combined, they average about 15%, with PST and GST taken together across Canada (although Alberta does not have a PST. They have oil ) Free healthcare costs money

Because taxes are always payable, they are a neutral factor in any online shopping decision. The $5 handling fee charged by Canada Customs on a per order basis, however, is not a neutral tax and is intended to increase prices to make small internet purchases originating in the USA unattractive. The tax is clearly protectionist and is probably illegal under NAFTA, but has never been challenged with any vigor.

The reality is that shipping costs already have more than enough deterrent effect.

Maybe I've had slack postal service workers, but when I've ordered from the U.S., I very rarely got tax applied. I think once. I've made several purchases to which no taxes were applied. The parcels arrived in the mail, and I kept waiting for a bill, but never received one.

Guess I shall not complain..

Of course, I use neither FedEx or UPS....typically I use U.S. Postal Service, and no brokerage fees or taxes are charged when my package arrives here.

Banshee

 

[Twowolves]

You must have terrible luck with them, I've never had a problem with Amazon, they always ship a heck of lot faster than they promise with their free shipping as well. They are my FIGBMMS. Friendly Internet Game Book Movie Music store.

I ordered two RPGbooks once, both were in stores at the time. That was just after Christmas. I finally got my books in March, and then only after trying to get in touch with a human being (which is NOT easy with Amazon, at least at the time it wasn't). I tried again later, and was sold a 1st ed book when what I ordered was a 2nd ed book (not D&D). Two strikes and they are out, as far as I'm concerned. I've had waaaaaay better luck with eBay, and that's kinda sad.

 

[Dannyalcatraz]

Is this borne out by your experience in the entertainment industry, as well?

Yup.

My first real lesson in the spending power of Gen Y came in the early 1990s, while I was still in Law School. I was visiting some family friends in Michigan and we went for an outing in the city. We stopped in a record store, where I bought a couple of Soundgarden CDs. Each of the little girls bought a New Kids on the Block CD.

I thought nothing of it until later that evening when I found out that each of the girls had just completed their collection...every girl now had a CD for each member of the band.

(Personally, I can't recall my parents ever buying me multiple copies of anything that wasn't a neccessity...)

Similar buying trends- single purchaser, multiple copies- among Gen Ys were seen with the careers of other boy bands of the era, some of their members who went solo (Justin Timberlake), Britney Spears, and Christina Aguilera. Their purchasing patterns knocked artists who appealed mainly to adults right out of the top slots.

Its not all tweenie mind control, though- a major component of this purchasing power is simply statistical- Gen Y is almost as big as the Baby Boom, vastly outnumbering Gen X. And on top of that, compared to the Boomers, there is a higher percentage of them going on to college etc., improving their long-term purchasing power.

 

[Storm Raven]

WotC will only impose price floors if they think that it will increase sales overall.

They don't want to maximize sales, but revenue; and they want to minimize outlays. If WotC can arrange their pricing to sell 75% as many books for 100% as much revenue, then they will.