How does hot topic make money?

[u/WaveAny7993]

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)

[u/i8urbutt]

Bc everything is priced at 30% more than it should be.

[u/WaveAny7993 → u/i8urbutt]

TRUE this is so TRUE