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Can Hobby Stores Make Their Saving Throw?
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<blockquote data-quote="Warpiglet" data-source="post: 7719916" data-attributes="member: 6689161"><p>Few want to really think this through. It all comes down to harsh realities. I do not think the answer is a binary choice though.</p><p></p><p>If I can get the same product more cheaply from an online source what does economics tell us? Its pretty simple. Unless there is added utility from a game store and the distribution channel, consumers will bypass it. I love game stores. However, what I am saying seems to hold true across many retailers.</p><p></p><p>Does this mean that there is no place for a game store? I believe they will have to adapt.</p><p></p><p>For example, Miniature Market and Cool Stuff are physical stores that grew an online presence. One of them is local to me. They sell and they sell more cheaply and as a result, they move units.</p><p></p><p>The problem with a hobby shop charging premium prices is that people can get so much information online for free and as the utility of the hobby shop experience goes down, people are less willing to pay the premium. Not only that, but the online presence means that a person in a rural or unsupported area is even less likely to travel to a hobby shop.</p><p></p><p>The answer lies is a joint venture. The prices need to come down. For this to happen, more units have to be sold and the online presence is the only way to make this happen on a reasonable scale.</p><p></p><p>If this happens, I do in fact browse at the hobby shop AND make my purchase there. As it is, I browse and buy something, but often make my bigger purchase online. It is fun to browse, but not worth a 33% markup.</p><p></p><p>My sense of charity is directed to charities that support ill children and so forth. I do not feel compelled to keep my FLGS open. However, the FLGS that does not charge too much of a premium gets my money.</p><p></p><p>I will pay a premium for greater utility. I paid more for example to get my 5th edition Player's Handbook sooner. I could not wait and they got a little extra money from me in exchange for their early release.</p><p></p><p>In my perfect world, these brick and mortar stores will survive! But I believe they will have to adapt in order to do so. No amount of sentimentality is going to do the trick. I have seen people complain bitterly about online competition. Complaining will not change a thing. Getting a webpage and a competitive price will make all the difference.</p></blockquote><p></p>
[QUOTE="Warpiglet, post: 7719916, member: 6689161"] Few want to really think this through. It all comes down to harsh realities. I do not think the answer is a binary choice though. If I can get the same product more cheaply from an online source what does economics tell us? Its pretty simple. Unless there is added utility from a game store and the distribution channel, consumers will bypass it. I love game stores. However, what I am saying seems to hold true across many retailers. Does this mean that there is no place for a game store? I believe they will have to adapt. For example, Miniature Market and Cool Stuff are physical stores that grew an online presence. One of them is local to me. They sell and they sell more cheaply and as a result, they move units. The problem with a hobby shop charging premium prices is that people can get so much information online for free and as the utility of the hobby shop experience goes down, people are less willing to pay the premium. Not only that, but the online presence means that a person in a rural or unsupported area is even less likely to travel to a hobby shop. The answer lies is a joint venture. The prices need to come down. For this to happen, more units have to be sold and the online presence is the only way to make this happen on a reasonable scale. If this happens, I do in fact browse at the hobby shop AND make my purchase there. As it is, I browse and buy something, but often make my bigger purchase online. It is fun to browse, but not worth a 33% markup. My sense of charity is directed to charities that support ill children and so forth. I do not feel compelled to keep my FLGS open. However, the FLGS that does not charge too much of a premium gets my money. I will pay a premium for greater utility. I paid more for example to get my 5th edition Player's Handbook sooner. I could not wait and they got a little extra money from me in exchange for their early release. In my perfect world, these brick and mortar stores will survive! But I believe they will have to adapt in order to do so. No amount of sentimentality is going to do the trick. I have seen people complain bitterly about online competition. Complaining will not change a thing. Getting a webpage and a competitive price will make all the difference. [/QUOTE]
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