strangegrey wrote:Im quite positive that they cut cost corners somewhere. It *might* not be in the production of the discs themselves, but they most certainly avoided some costs somewhere in order to release a tripple disc package at a 12 dollar price point.
I'd be curious to see how it plays out...
I've honestly crunched some numbers (bored), and though I imagine Wal-Mart has outsourced printers/disc makers/assembly/etc... I just wanted to see ballpark what it would cost to run it per unit using figures I work with everyday. Since I can only go from eyeballing the packaging and discs I'm doing my best to guess what was done here... I could be wrong. Plus, I don't know if the DVD is a regular DVD-5 or a DVD-9.
Digipack
*Using pricing grid for highest quantity (100M) for a printing company in Canada*
8 Panel w/ clear tray: $425/M (M = thousand)
UV/Matte coating: $33/M
4cp, 4/4: $56/M
Pocket: $33/M
Total: $547/M... adding typical mark-up for production company's profit... Per Unit: $1.12
CD Replication
*Quantity Unknown, using average base of $0.30/ea for runs of 100M*
Special Inks (pantome... I know that's not CMYK) and/or possibly off-set printing (it looks offset to me): add'l $0.15/ea
Approx per unit: $0.45 @ 2-discs = $0.90
DVD Replication
*Again, unknown quantity, using base of $0.44/ea for runs of 100M and same ink printing*
Approx per unit: $0.59
Booklet
I can't remember how many pages there were, so we'll go with a traditional 4 sheet 4/4, total 8pg booklet.
8pp: $232/M
IF add'l PMS colors were used: $150/color
Approx total per unit, including mark-up: $0.81
Assembly
Inserting discs to digipak, inserting booklet, shrinkwrapping:
$0.15
...So before you even add in freight, the product production alone is over $3.50... and this is a severe low-ball price. IMO, this thing was probably near $4.50/unit. $11.88 less (guess) $4.00 = $7.88 to split between everybody else who wants money/profit/fees/taxes/legals... IDK. I hope it was a good deal for the guys. As I said before... Wal-Mart almost HAS to do their own production of the product to really turn a GOOD profit on this.