CEX - How are they making money?

61
Found 18th Nov 2011
Just wondering how CEX are making any money and still in existence considering the current financial climate with other businesses struggling?

As someone pointed out the other day in a deal thread, they have nearly 1500 copies of LA Noire for the 360. I might be wrong but that figure doesn't include stock that the franchised stores have. They are selling these for £10 and have must bought most of these in for a much higher price. Also have nearly 2000 copies of Black Ops for the 360.

They are still buying in loads of MW3 at £33 each. With the slight change of gaming online, they now don't offer codes with games (unless they keep sealed ones intact for sale). So why would you want to buy a game from there unless you've got credit?

I do know that they sell a lot of second hand phones, but surely this can't be enough to cover the losses they must be making on buying in games and blu-rays?

If anyone works for CEX, please feel free to join in.
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They just opened a store here in Blackpool so they must be making some kind of money.
or money laundering.
They don't ever spend any money on their shops when they do have them so that's a saving. the CEX in Leeds is a real pig sty
I've wondered this myself as well...
They have not done themselves any favours by recently starting to charge £2.50 for delivery.
At the moment I heard they are struggling for cash.... They are offering only credit/exchange for most of the items now a days.....

whenever I go to the shop to exchange my cheap mp3 player for £15 they say that they don't have cash....only offer a store credit.... WTF....?

but they recently opened shops in UK also opened shops in India...
The main page of their website...

Apple iPad Wi-Fi 16GB, B
We sell for : £310.00
We buy for : £155.00
Give exchange : £206.00

100% profit on cash lol. Not surprising really.

lol haven't they recently gone from free delivery to £2.50 too?
Edited by: "Dehumanization" 18th Nov 2011

I was trying to exchange an item for another one few days back.... and they told interbranch stock transfers takes about 3 weeks.... they suggested me to exchange the item get a credit voucher, send it to head office once I paid for the item through my card.... I think 3 weeks is a long time for courier....

donaldduck2

They have not done themselves any favours by recently starting to charge … They have not done themselves any favours by recently starting to charge £2.50 for delivery.

Dehumanization

The main page of their website...Apple iPad Wi-Fi 16GB, BWe sell for : … The main page of their website...Apple iPad Wi-Fi 16GB, BWe sell for : £310.00We buy for : £155.00Give exchange : £206.00100% profit on cash lol. Not surprising really.lol haven't they recently gone from free delivery to £2.50 too?


remember they used to buy these ipad's for more than £250-280, they used to buy the 64gb3g ones for about £400 now they are selling less than that price.... now they got loads of 1st gen ipad's and if any thing goes wrong in 12 months they have to replace it...
Surely that's the same as any shop when anything goes down in price?
The ones they bought for £250 they'll have made their profit on before buying more up at a lower price?
brb accepting used games/phones/computers
brb giving put cash or store credit for items
brb selling items on for more money
brb paying staff poor wage (so much so that they can't afford deodorant hence why the shops stink)
??????
Profit

Edited by: "numptyj" 18th Nov 2011
I always ask when they are getting cash in so i can go at the right time. I've had them call me when they are due to get cash from the bank so that i don't waste time going back the following day to hear there is no cash again.
You all must live in very poor areas or something, my local Cex is one of the nicest shops i've seen, friendly staff with a huge choice of items and they ALWAYS have cash..
MiiCK

You all must live in very poor areas or something, my local Cex is one of … You all must live in very poor areas or something, my local Cex is one of the nicest shops i've seen, friendly staff with a huge choice of items and they ALWAYS have cash..



Newcastle? LOL.

Newcastle? LOL.

X)
heard last year they turned over £58 mill but made £35k profit oO
Ive no idea how they make money, every single time I've been in to look at something, I've found it either cheaper elsewhere new, or there not being enough of a price difference to bother with second hand.
Quick example

HTC Wildfire S in mint condition, they sell for £165
I bought one from CPW yesterday for £119

So £45 more for a second hand one.
CEX round here is fine, it's about 3 times the size of the Leeds one.
The Rathbone Place store (off Oxford Street) is awful now.
Edited by: "RatedRPornstar" 18th Nov 2011
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deleted193256
they opened their first irish one earlier in the year, very well run and always busy
abzzyy

heard last year they turned over £58 mill but made £35k profit oO



That's still a profit in an economic meltdown,

It's more impressive if you actually consider it's a 2nd hand goods shop.

Also without seeing the accounts, you wouldn't know if the Directors / Shareholders have been paid out any money?...
Understand it like this its a very good business model.

Economies of scale
My two boys have no issue with CEX the service is great much better than they got at Game, they buy and sell and there is never a problem with getting the cash.
they must make money the stores I have been in are always full
More power to CEX
Dehumanization

The main page of their website...Apple iPad Wi-Fi 16GB, BWe sell for : … The main page of their website...Apple iPad Wi-Fi 16GB, BWe sell for : £310.00We buy for : £155.00Give exchange : £206.00100% profit on cash lol. Not surprising really.lol haven't they recently gone from free delivery to £2.50 too?



not really 100% profit. More like 50%. It would have been 100% if they bought it for nothing.
TheRatedSeller

not really 100% profit. More like 50%. It would have been 100% if they … not really 100% profit. More like 50%. It would have been 100% if they bought it for nothing.


oO
Edited by: "kurupt213" 29th Aug 2015
TheRatedSeller

not really 100% profit. More like 50%. It would have been 100% if they … not really 100% profit. More like 50%. It would have been 100% if they bought it for nothing.




I would post a facepalm meme, but there just isn't one which encapsulates such levels of fail...

...on a three year old thread too.

oO
LOL
TheRatedSeller

not really 100% profit. More like 50%. It would have been 100% if they … not really 100% profit. More like 50%. It would have been 100% if they bought it for nothing.



100% gross profit margin. However its a 3 year old thread so the margins have probably changed since the op
TheRatedSeller

not really 100% profit. More like 50%. It would have been 100% if they … not really 100% profit. More like 50%. It would have been 100% if they bought it for nothing.



100% fail
Avatar
deleted265520
Jacob007

My two boys have no issue with CEX the service is great much better than … My two boys have no issue with CEX the service is great much better than they got at Game, they buy and sell and there is never a problem with getting the cash.they must make money the stores I have been in are always fullMore power to CEX



Argh are you serious. How long did it take you to find this buried thread and bump it up???
delusion

100% fail



Please explain why it is wrong?
RossD89

50% of 155 is 77.5If the item was sold for £232.50 then it would make a … 50% of 155 is 77.5If the item was sold for £232.50 then it would make a 50% profit.100% of 155 is 155155 + 155 = 310 so selling for £310 gives (gave?) them 100% profit.



Oh, I thought profit margins worked out like this: Total Profit/Total Cost (including profit) x 100%. And specifically for this example the profit was 155 and the total cost was 310, therefore I assumed that it was 50% since 155/310 x 100% = 50%.
TheRatedSeller

Please explain why it is wrong?



50% of 155 is 77.5

155 + 155 = 235.5

If they were to sell the item at £235.5 then they would have made 50% profit.

100% of 155 is 155

155 + 155 = 310

Selling the item at £310 gives (gave) them 100% profit.
TheRatedSeller

Oh, I thought profit margins worked out like this: Total Profit/Total … Oh, I thought profit margins worked out like this: Total Profit/Total Cost (including profit) x 100%. And specifically for this example the profit was 155 and the total cost was 310, therefore I assumed that it was 50% since 155/310 x 100% = 50%.



100%mark up then, clever cloggs
Edited by: "RossD89" 29th Aug 2015
dtovey89

Argh are you serious. How long did it take you to find this buried thread … Argh are you serious. How long did it take you to find this buried thread and bump it up???



Just like with most of the other threads that get necro bumped on here, it will most likely be somebody doing a search through Google, then signing up to have their say and probably forgetting which site they used after that.
Oh and by the way.... CeX smells.
Avatar
deleted265520
Bashstreet

Just like with most of the other threads that get necro bumped on here, … Just like with most of the other threads that get necro bumped on here, it will most likely be somebody doing a search through Google, then signing up to have their say and probably forgetting which site they used after that.



It should be an instant perma ban
The GCSE drop-outs who works there smokes soooo much weed. They look dead, unshaven, watch zombie/Seth Rogan films on repeat and have lots of quirky/emo/hipster colouring in their hair.

Its like Cex have a checklist when they look for insecure people to employ.
I once went to buy a game and the guy took out the PS3 disc from the sleeve and noticed some scratches on it. He then used his mouth to steam up the shiny side and then wiped it on his hoodie!!!
ShadowWarrior241

The GCSE drop-outs who works there smokes soooo much weed. They look … The GCSE drop-outs who works there smokes soooo much weed. They look dead, unshaven, watch zombie/Seth Rogan films on repeat and have lots of quirky/emo/hipster colouring in their hair.Its like Cex have a checklist when they look for insecure people to employ.



Belittles people and implies they are uneducated... Can't structure coherent sentences or properly punctuate.

Bravo.
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