September 3, 2007


Dear Prospective Customer,

If you are new to the video game industry or just trying to get information on becoming a retailer for video games please read the following information carefully. If you are already a retailer or familiar with this industry then you can ignore the rest of this note.

Thank you for your inquiry regarding Mecca Electronics Industries and its product offerings. The rewards to owning and operating your own business are limitless. The first thing you should know before starting in this industry is that the profit margins (especially when it comes to hardware) are extremely slim. The only way to increase your profits are to sell hardware, software and accessories in conjunction with one another, and in large volume. For example the Sony PS3 80GB Video Game System, which retails for $599.99 will cost you $582.00.

In addition to the hardware’s small profit margins the games also have relatively thin margins. For example, a game that retails for $49.99 will probably cost you around $41 or $42 depending on the publisher. The exceptions to these rules are closeout or overstocked games that we have special pricing on; this is a good way to increase your profit margins. Also, it is important for you to know that although these profit margins seem small they are enormous compared to our margins.

Your initial order with Mecca Electronics must be in excess of $1000. This is a very small amount for this industry and just insures that you are buying to retail the product, not for personal use. After the initial order we will work with you without any minimum purchase requirements (within reason.)

This business is all about volume, volume, and more volume. However, the video game industry has surpassed Hollywood box office sales in total $’s, so if you do it right it can be a successful & very profitable business. With this understanding if you are still interested in being a part of the video game business we would love you to join our team of customers and grow with us.

Best wishes,



Raymond Aboody
President
Mecca Electronics Ind.
 

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