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Amazon.com no more for game purchases: Hypothetical...
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<blockquote data-quote="Dannyalcatraz" data-source="post: 2999120" data-attributes="member: 19675"><p>Many places do this in order to qualify for bulk order discounts...which gets their per unit cost down closer to what the Amazons of the world are being charged. According to some past posts by people on these boards who actually own game shops, some of those online <em>retail<em> prices are lower than what the FLGSs are being charged wholesale- IOW, Amazon is selling below their costs to acquire new stock.</em></em></p><p><em><em></em></em></p><p><em><em></em></em></p><p><em><em></em></em></p><p><em><em>If the online price is below the FLGS's wholesale price, they'll be quite hesitant to match that price. Thus, they hemmorage money in the form of lost opportunity costs. The superior tactic would be to discount the hell out of it, getting it off your shelf, and find another product your company can sell competitively...assuming there is one.</em></em></p><p><em><em></em></em></p><p><em><em>(If the online retailers are getting beneficial deals on all of the RPG and RPG related merchandise relative to your price, you need to complain or get out of the biz.)</em></em></p><p><em><em></em></em></p><p><em><em>The ways in which a FLGS can outshine an online retailer on a regular basis is in customer support and creating an environment that fosters loyalty and sales, like doing game demos, for instance, or hosting tournaments, or by having rentable game rooms and LAN setups.</em></em></p><p><em><em></em></em></p><p><em><em></em></em></p><p><em><em></em></em></p><p><em><em>See above- if the internet retailers are being given an edge by the game companies the brick & mortar guys can't counter, then they are. You can't really blame the game companies, really- they're trying to get their product into as many shelves as possible, and bulk discounts to places like are one way of doing that.</em></em></p><p><em><em></em></em></p><p><em><em>And that's assuming that the online retailers aren't using the illegal technique of "predatory pricing"- roughly speaking, pricing a product far below costs and enduring losses in order to drive smaller competitors out of a market, gaining market share- ideally, getting a monopoly- and raising prices later. Frequently, those losses are cross-subsidized by other products. Electronic publishing & PDFs, of course, counter some of this. (The flipside is that people like me, who dislike PDFs, will be forced to either pay the higher prices or do without.)</em></em></p><p><em><em></em></em></p><p><em><em>Why would they do this?</em></em></p><p><em><em></em></em></p><p><em><em>The holy grail, if there is one, is to monopolize all of the little tie-in products to things like Star Wars, Buffy, etc., including the games they inspire. Despite Amazon & others online power, there are still promotional campaigns that ONLY go through LGSs.</em></em></p><p><em><em></em></em></p><p><em><em>To get those, they have to BECOME the game store of choice- and if getting the exculsive rights to sell a Star Wars RPG means selling D&D at a discount, they'll do it. If that comes to pass, though, don't expect to see them selling the smaller publishers' works.</em></em></p></blockquote><p></p>
[QUOTE="Dannyalcatraz, post: 2999120, member: 19675"] Many places do this in order to qualify for bulk order discounts...which gets their per unit cost down closer to what the Amazons of the world are being charged. According to some past posts by people on these boards who actually own game shops, some of those online [I]retail[I] prices are lower than what the FLGSs are being charged wholesale- IOW, Amazon is selling below their costs to acquire new stock. If the online price is below the FLGS's wholesale price, they'll be quite hesitant to match that price. Thus, they hemmorage money in the form of lost opportunity costs. The superior tactic would be to discount the hell out of it, getting it off your shelf, and find another product your company can sell competitively...assuming there is one. (If the online retailers are getting beneficial deals on all of the RPG and RPG related merchandise relative to your price, you need to complain or get out of the biz.) The ways in which a FLGS can outshine an online retailer on a regular basis is in customer support and creating an environment that fosters loyalty and sales, like doing game demos, for instance, or hosting tournaments, or by having rentable game rooms and LAN setups. See above- if the internet retailers are being given an edge by the game companies the brick & mortar guys can't counter, then they are. You can't really blame the game companies, really- they're trying to get their product into as many shelves as possible, and bulk discounts to places like are one way of doing that. And that's assuming that the online retailers aren't using the illegal technique of "predatory pricing"- roughly speaking, pricing a product far below costs and enduring losses in order to drive smaller competitors out of a market, gaining market share- ideally, getting a monopoly- and raising prices later. Frequently, those losses are cross-subsidized by other products. Electronic publishing & PDFs, of course, counter some of this. (The flipside is that people like me, who dislike PDFs, will be forced to either pay the higher prices or do without.) Why would they do this? The holy grail, if there is one, is to monopolize all of the little tie-in products to things like Star Wars, Buffy, etc., including the games they inspire. Despite Amazon & others online power, there are still promotional campaigns that ONLY go through LGSs. To get those, they have to BECOME the game store of choice- and if getting the exculsive rights to sell a Star Wars RPG means selling D&D at a discount, they'll do it. If that comes to pass, though, don't expect to see them selling the smaller publishers' works.[/I][/I] [/QUOTE]
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