greg wrote:Pure crap. Nobody would have to worry about reverse importing DVDs if they would just stop pricing them so high here.
I've seen people claim it's because of the rental store market, but they never break down the costs.
I'm convinced it's all due to what appears to American eyes a very complex, tradition ridden and archaic retail distribution system.
Here's my math, check me.
1. Many products in Japan have their retail price printed on the product. There seems to actually be protective laws in place that prevent some categories from any deep discounting. I Have seen with my own eyes some department stores marking toys and model kits down by some minimal amount, like 10%. This was before the national sales tax was imposed.
So, then, a book marked at 1000 Yen is 1000 Yen. Everywhere.
Japan, unlike America today, still uses middlemen, brokers and jobbers that add layers between retailer and manufacturer. I have been told that there's generally 4 levels before an item gets to the store. Each middleman naturally gets a cut. How much of a cut is a mystery that I've never seen anyone investigate.
Math. If a book sells for 1000 Yen, the retailer MUST get it at some kind of discount in order to profit. A store MUST make a profit in order to stay in business. In America, back when we HAD bookstores, it was common for the publisher to sell direct at 40% off the cover price. If the store used a jobber like Ingram or Baker & Taylor the discount would generally be tighter, 35% off the retail price, sometimes with a 'push' incentive for fast (net 30 days) payment. So if that 1000 Yen book was a $10 book in a U.S. bookstore, they paid $6. The publisher makes money, the book store makes money. Note that makes it either direct from manufacturer or one level of jobber.
(we're not going into the complex issue of 'strip for return credit' and 'whole copy return' and all that, unless we need to later.
)
Now, while I don't know the specifics of the Japanese retail distro system, if it DOES have generally 4 layers between maker and seller, and they all down the line are making money off the item it seems to me that means items are roughly double the price they could be. That 1000 Yen book is likely 500 Yen out the door of the publisher.
(I will note that Hobbylink Japan, which is both a distributor and a mail order retailer, even THEY don't get any stock direct from Bandai and others, they have to rely on jobbers to provide stock. At least from various comments this seems to be true)
And yes it's frightening just how CHEAP the weekly manga 'phonebooks' have to be and why it's a darn good thing they sell in the millions...
I really wish someone could do a deep investigation of Japanese retail. It would have to be a native Japanese I think because ANY gaijin asking a store who they get stuff from would probably get the 'great stone face' in return.
whew. that's alot.