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CEX - What's their strategy?

19
Found 4th Dec 2013
So I noticed CEX are buying the Xbox One for £455 and the PS4 for £400 then trying to sell them for over £100 more than the RRP, but what exactly is their strategy with this?

They have 500+ Xbox One's in stock and 800+ PS4's in stock, obviously their plan was to buy for more then sell for more to meet demand of the desperate people trying to get the consoles before Christmas but it obviously isn't working.

With them still buying the consoles for more than they're worth and having 100's in stock what exactly is their plan? Am I missing some genius plan they have or has their strategy just completely back fired?
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Like you say they will be hoping people get desperate as it gets closer to christmas.
CEX always charge over RRP for most things, i do wonder how they are still in business as the one ive been in people are just selling or trading stuff
king261

CEX always charge over RRP for most things, i do wonder how they are … CEX always charge over RRP for most things, i do wonder how they are still in business as the one ive been in people are just selling or trading stuff


Agree, a new store is due open local to me. Hope they don't only employee emos and goths.
Edited by: "h4mza" 4th Dec 2013
My local shop smells like a dirty mens public toilet, makes me gag when I go in. Never spent a penny in there because everything seems over priced, but it's always full of youngsters buying games
They like to exploit the sheep
Depends how many they have already sold at the inflated price. If enough then they can drop the price on the remaining consoles and still turn a profit.
ive traded a loty of blu rays in there

full of emos goths and strange looking people behind the tills

always play crap music and overprice everything
i'm guessing little timmy wants ps4 but has no pennies, so he trades in everything he has to cex for a £500 voucher to get said ps4. in theory cex then sell little timmys stuff on for near a grand.

my guess anyway, in all honesty i don't know how they are still going!
Edited by: "capend" 4th Dec 2013
I think capend got it right, they will expect a large influx of xbox360 and ps3 stuff, which they will pay under the odds for in exchange for vouchers then turn a profit on those to recoup what they have paid for the x1 and ps4
thelaine

I think capend got it right, they will expect a large influx of xbox360 … I think capend got it right, they will expect a large influx of xbox360 and ps3 stuff, which they will pay under the odds for in exchange for vouchers then turn a profit on those to recoup what they have paid for the x1 and ps4



Simple ..
Example of being tied in..
Trade in nice TV:
CEX offer £350 cash or £550 CEX voucher. Person takes voucher (should have sold elsewhere for £550 but there you go).
No choice but to spend it instore, so CEX can sell above RRP.
I expect the customer is not too annoyed as they mistakenly think the overall cost was a better deal than selling for £300 cash then going to a normal clean shop and having to find another £100 to buy the Xbox.
lizmacfarlane946

My local shop smells like a dirty mens public toilet, makes me gag when I … My local shop smells like a dirty mens public toilet, makes me gag when I go in. Never spent a penny in there



Somebody else must have...
smashed

Simple ..Example of being tied in..Trade in nice TV:CEX offer £350 cash … Simple ..Example of being tied in..Trade in nice TV:CEX offer £350 cash or £550 CEX voucher. Person takes voucher (should have sold elsewhere for £550 but there you go).No choice but to spend it instore, so CEX can sell above RRP.I expect the customer is not too annoyed as they mistakenly think the overall cost was a better deal than selling for £300 cash then going to a normal clean shop and having to find another £100 to buy the Xbox.



Spot on. In addition to this it is also the convenience of getting an instant 'sale' of your item to CEX rather than advertise on ebay/gumtree/newspapers etc.
Plus they try every trick in the book to get you to take the store credit. "Come back this afternoon, we don't have any cash at the moment". "Oh sorry you had the long trip back - we had a run on, how about store credit instread?" "No? try back tomorrow". rince repeat.
Don't even think about sending items for cash you wait for weeks for it to get processed
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deleted265520
I really hope this backfires for them. Absolute tools
mini0ne

Don't even think about sending items for cash you wait for weeks for it … Don't even think about sending items for cash you wait for weeks for it to get processed



I have sent for cash before. But you will lose all your cash if you send your monitor, phone etc in to CEX (or any phone recycler) and they go into administration before they pay out.
dtovey89

I really hope this backfires for them. Absolute tools



It won't they do it with all desirable electronics was iPad mini last Xmas

There enough people who will happily trade a grands worth of stuff


They were paying 485 last week
The term people knowing the price of everything but the value of nothing comes to mind, hence the ability of these places to charge what they want and still remain in business.
Reached over a thousand in stock.
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