GameStop is getting a lot of crap for its Circle of Life sales shenanigans. A Reddit topic blew up and the story moved to the gaming press, such as on Kotaku.
Now, Mega64 has their funny (at least to me) and all too true take on how shitty GameStop treats its employees (from my own experience), but this time it's involving Circle of Life!
Haha that's pretty funny, though I must say the sales model employed here is a little perplexing. I understand that they make more money on used game sales than on new copies, but... Surely they make a profit on both? And some of those new copies you sell may eventually return to your store anyway as used copies which you can sell a second time?
I guess it's meant to boost their overall profit margins, but if the result is that employees feel pressured to lie to their customers... Maybe it's time to reconsider your store policies lol.
From the little I've looked into it, it appears to me that it was likely upper level management pushing an unrealistic goal for their stores, and those stores coming up with a short-sighted way to keep their numbers up. They make a much bigger profit margin on the used goods, from what I understand, so not surprised they're pushing the stores to encourage used sales.
For example, in high school, I had a friend who worked at Best Buy, and their employee discount was taking off whatever profit margin Best Buy had on the product when an employee buys the item. From what I understood, video game systems & games have very, very little profit margin.