There's another cold, harsh reality that if the perceived value of an item isn't high enough to justify the price tag, a would-be customer won't buy. As the price tag increases, the percentage of the market to cross that "not worth it" threshold inevitably increases. This means there's a balancing act to be done - do you go for more sales at a lower margin, or fewer sales at a higher margin?
It is, of course, entirely possible that a product can reach a point where it cannot be viable - the cost to produce means that it cannot be sold to enough people at a high enough margin. (Actually, I wouldn't be at all surprised to find that D&D is pretty much at that point where Hasbro are concerned.)
Agreed. "Labour of love" seems more and more the tagline for RPG products.
Indeed. My understanding is that Amazon can deliver most, if not all, RPG products to the end customer for a lower price that an FLGS must pay just to get the book in stock. Faced with that, it's a wonder that any have survived.
(And it's worse even than that, what with WotC having moved over to a subscription model with the DDI and Paizo having done the same with their many subscription offerings.)
Of course, the problems with brick-and-mortar stores aren't limited to the RPG business; the writing's probably on the wall for pretty much all of them.
Very true. I see a lot of "loyalty to the company", "loyalty to the store" and "loyalty to the hobby" arguments presented in this regard. WoTC is not required to sell at a price I find acceptable. Neither am I required to support WoTC over a company producing cheaper product (or product I prefer), my FLGS over a less costly online retailer or the hobby itself. But I don't expect WoTC to cater to my preferences, Amazon to start providing online access to "skim through the book" before I buy, or the hobby to continue on under the efforts of charitable souls donating their time, or providing it for less than its market value.
We lament the loss of the FLGS, the decline in the hobby, etc. Who's crying for all the video rental chains with the advent of low cost DVD's, online streaming and Netflix? In a free market economy, business lines, businesses and entire industries either learn to compete, or they perish.