Originally Posted by JBlacklow
Promotional service and advertising isn't a method of messing with sales figures, it's business. Saying figures are skewed by better stocking and advertising is ridiculous.
If Coke sells better than Pepsi in 60% of grocery stores because they have an endcap, more cans and bottles in stock, and better advertising, would you say that the Coke vs. Pepsi sales numbers are worthless?
If I pay the grocery $10,000 to put Coke on the end of the isle and stock 3X as much as Pepsi, and while I do that Coke sales are marginally better (not by 3X as much though). However, if as soon as a I stop paying, Coke and Pepsi sales become even again, then yes, I would say that the sales numbers were worthless while I was paying $10,000. The reason, the $10,000 was paying to take space away from my competitor for me to use, and I could only sustain that performance level while paying $10,000 out of pocket. As soon as I could no longer afford to pay that, and space allotted was back to 50/50, then true supply and demand was represented. While I was paying, it was creating an artificial supply and demand.
Same thing at Meijers. They said we will stock no HD-DVD or BD products. Then both formats said, "What if we pay you?" Meijer said, sure, we will give you shelf space if you pay us, and it costs $X for X amount of space. True sales could be reflected in this situation, but they equally may not be. I went there a few times looking for a copy of Aeon Flux on HD-DVD. They didn't have it on HD-DVD, but they did on BD. Why? Because BD was paying them to stock 3X the number of titles. If HD-DVD had done the same (both supplies equal), then they may have had that HD-DVD, they would have had a HD-DVD sale. So their actual sales don't reflect their true potential sales because product is only being represented based on how much is paid, and not based on actual customer demand. This is essentially a skewing of the data, which depending on volume, may skew the results of someplace like Nielsen, if they collected Meijer's data.
Are you saying someplace like Circuit City, that didn't sell HD-DVD at all, was not skewing their sales results in favor of Blu-ray by not carrying HD-DVD? Are you saying their sales data represents the true demand of their customers with 100% of sales being BD and 0% being HD-DVD? If so, then you must also be claiming that now that they do carry HD-DVD, they will sell 0 copies, because the past sales data wasn't skewed and represented the true demand of their customers.
Further, I may pay $10,000 to put Coke on display, but only sell $9000 worth of Coke. I've lost money doing so, even though I may have sold more than Pepsi. However, Pepsi made a profit and I experienced a loss despite higher sales. So how are my higher sales actually representing the success of my business in this case?