A Booming Recession Business

A Booming Recession Business
Companies that supply dollar stores are raking it in
http://www.inc.com/magazine/20090901/a-booming-recession-business.html

Summary: The recession has been very unpleasant for many businesses, but for DVA, business has been blooming. DVA is a liquidator of DVDs, CD's, and video games in Los Angeles. Since last year they're sales are at $21 million and have gone up by 8 percent this year. The company buys copies of shows and movies that other stores don't want to sell anymore like, Pinky and The Brain and 24 Hour Party People. Then they sell these copies to discount retailers. So these copies can be purchased online or at dollar stores.

Discount retailing is usually not very a common place for safety in a recession. A closeout supplier named Illinois buys excessive stock of plates, soap, and socks, and sells them again to discounters. And the company sales were really fast this year. Other specialty shops are also cashing in.

Reflection: I think that the companies are being smart by also cashing in. If it's helping the sales of their company, than i think they're doing a good job. And the idea of selling DVD s that other stores are not selling is pure genius because it's different. This article has also changed my opinion on recessions because it shows me that they're not always bad, you just have to know how to deal with them.

Connections: This article connects to chapter one of the textbook, marketing today because it talks about the channels of distribution. They show how companies take excessive stock and sell it to discounters for more money and make quite a great profit out of it. This shows how the channel of distribution works. They buy from the producer and sell it to retailers.