June 6, 2008
Q: According to Sony Computer of America, if a Playstation (PS) 2 title sells more than 400,000 copies and has been on the market for more than nine months, the title will be eligible for the “greatest hits” category. Greatest hits titles usually sell for $19.95 and a lot of videogame stores offer greatest hits titles at $30 for any two. I decided to get a copy of Final Fantasy XII greatest hits for PS2 from the Navy Exchange (NEX) on base and noticed that it was priced at $24.99 while major online retailers such as amazon.com, buy.com, bestbuy.com, gameexpress.com and others have the same game priced below $20. Why?

A: The Navy Exchange strives to have the best pricing for our customers. There are many factors that determine pricing, one of the biggest is power buying. Wal- Mart operates 4,000 stores, Best Buy operates 750 stores and the Navy Exchange has 180 stores that sell video games. The larger volume stores will have the buying power to negotiate lower cost prices and set “loss leader” pricing to bring customers into their stores. Also, please note, e-commerce does not have the overhead costs required to run brick and mortar operations. Spyro “A New Beginning” became a greatest hit title in October 2006. Navy Exchange sells this for $29.99. Sears sells it for $29.99. Wal- Mart sells it for $27.82. Final Fantasy became a greatest hit title in October 2006. Navy Exchange sells this for $24.99. Sears sells it for $19.99. Wal-Mart sells it for $19.82. Although we try to remain competitive with our pricing, a $19.99 retail price would be below our cost price. As we do not want to lose our loyal patrons to the other retailers, the Navy Exchange does accept internet price matching from Wal-Mart, Sears and JC Penney’s. All you need to do is print out the web page from one of these companies and bring it to the Navy Exchange Sight & Sound department. We would be more than happy to match their price. Quality goods and services at a savings is our mission and we thank you for your comments. If you have additional questions please feel free to contact the NEX Story Manager Lisa Ballejo at 243-4455.