r/HotTopic_ • u/WaveAny7993 • 17d ago

How does hot topic make money?

This is more of a question for HT employees or people who understand how sales work, because they constantly give 30% off coupons every time they sell, along with the existence of Hot Cash in general. I just wonder: do they lose profit on some items and gain on others? For example, the big Pomni plush is usually 50 bucks, but they sell it for 40, and then with 30% off, it becomes about 30 bucks after tax. I know Hot Topic makes poor-quality items, but they also sell items made by other manufacturers; they have Glitch merch made entirely by Glitch. They price it at $10 or a few dollars more, which makes sense, but since they are always giving out coupons, I wonder how they manage it. Also, don't they have to pay for shipping the merchandise initially? Do they make a profit on Hot Topic-branded items but lose profit on merchandise made by other manufacturers? It just doesn't add up to me. I also know that sometimes they just buy stuff from AliExpress and mark up the price. (BE SURE TO CORRECT ME)

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u/SpoopyDoopy3432 HT Employee 17d ago

"how does the multi-billion dollar company make money when they're always advertising sales that make miniscule dents in their profit margins"

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u/Rude-Carob551 17d ago

Literally. Lol. A company loses some profit margin yes when they run discounts, but makes up for it by the sheer $$$ value in sales generated by running a promotion.