I wrote this post last year in the previous blog. Now that I migrated to WordPress, I figured it’s best to resurrect this post again. Note that the currency mentioned in this post reflects our situation in July 2015. Before the whole insane jacked up price movement.
E Shop Cards are considered expensive in our country. Paying at least RM 40 for a USD 10 Nintendo E Shop Card is seen as absurd (Now it’s RM 45 though). But here’s the thing: What If I told you that RM 40 i spoke off earlier, was cheap. Of course any of you wouldn’t believe me. It’s Malaysia, we’re not regulated by anything in the industry to have something that is “cheap”. Everything needs to be discounted. Because we all want it. (but usually won’t get it. :P)
But that is actually, the reality of it. That RM 40, for a USD 10 Nintendo E Shop Cash Code or Card, is cheap. Here’s the reason why:
You already know there’s no regulation in terms of how much the cash codes can be charged. But, what you don’t realise is that, everywhere around the world, a USD 10 Nintendo E Shop Cash Code, is not sold at USD 10. Actually, it’s sold for USD 12.99 at retail (taxes not inclusive yet). How do I know this? I have scoured a mega huge number of retail stores in the US (by help of other people) to scour the difference in pricing among retailers there. It’s consensual, everyone sell it for USD 2.99 extra for USD 10.
So how much is the cost that a seller pays for the USD 10? You guessed it, USD 10 itself. Yup, that is the actual cost charged to us sellers. The USD 2.99 is the profit that the retailers take from you. The profit that Kyo takes from you however, is explained as well.
Lets change this to Ringgit then.
USD 10, on a good day, is at RM 37.50 (so you can see the cost price). USD 2.99 however, is at RM 11.2125. Total cost sold for: RM48.7125.
And I’m only charging you RM 45 for that at the moment. So technically, if I were to change everything back to USD, it’s USD 12 for an RM 45 card. And yes. The USD against MYR is rising. Yet, still RM 45 from my side.
So, you still think I want to rob you of your money or I’m too generous now slashing off USD1? 😛 Think of the profit made, it’s just 20% of the cost (which is ok to me, but I’m sure most people would say you must earn 30% minimum!).
And yes, the same applies for the other denominations that charges an extra USD 3 on top of money you’re getting. The sad part is that, at times that RM 7.50 is all we get anyways regardless of how much the e Shop card is (in other words, USD 20 35 and 50 gives me less untung. :P).
But hey, i always felt this was a nice service to give. And so here are the cost and profit that I get through eShop cards. Like I always said, nak jual kat you all mahal mahal buat apa. Dah lama dah aku discount kot. Haha. Korang jer yang rasa aku tak pernah bagi discount, padahal, far from it. 😛
PS: I may be writing about the Nintendo E Shop Cash Cards/ Codes, but to be frank, this can also apply to other game consoles as well. I can’t say about Facebook Cash, Steam Cards and whatnot though because those are different.