Death of the LGS

[Gort]

*shrug* As far as I'm concerned, the FLGS is a bad business model. You sell the same products as the online store does, at a 40% markup, and I have to go out of my way to get it. To me, that's a ripoff. I'd say the same about any other store selling standard merchandise at a markup - high street electronics and PC parts suppliers, for instance.

It's pretty much time for such businesses to fade away.

 

[Aria Silverhands]

So amazon should be punished for its ingeneous business model? Hardly.

The problem is (as I understand it) that the distribution system is based on markup %, rather than a flat rate/book. The model is fine when you're selling $5 books. Few people may mind paying an extra $1.00 (on that $5 book) to shop locally. However, many people *do* mind paying an extra $14 to buy locally (as is the case with the 4E PHB: $34.99 in the store and $20 and change at amazon). With 3 core books, that's an extra $42. Way too much to justify "buying local" IMO.

The distribution model is broken on pricey RPGs. Don't blame amazon for eliminating costly overhead and most of the potential of the five-finger discount. LGS will have to adapt, find a new model, or close.

Discount limits should be put in place.

 

[Gort]

Discount limits should be put in place.

Yes, lets punish the consumer because your business is unprofitable.

 

[Corjay]

You could consider that damaging the consumer, or you can consider it encouraging market diversity. I prefer the latter. When the small businesses die what you'll end up with is a wasteland of empty lots, burger joints, nowhere to go, and a cascading economy.

When you ask "what happened to my job?" you can look back and say "wow, I guess I should have supported small businesses better.

Note that I say "small businesses" and not just "LGS", because this issue affects more than your local gaming store. Cheap internet sales affects all small businesses, and even large real world businesses.

 

[Gort]

You could consider that damaging the consumer, or you can consider it encouraging market diversity. I prefer the latter. When the small businesses die what you'll end up with is a wasteland of empty lots, burger joints, nowhere to go, and a cascading economy.

When you ask "what happened to my job?" you can look back and say "wow, I guess I should have supported small businesses better.

Note that I say "small businesses" and not just "LGS", because this issue affects more than your local gaming store. Cheap internet sales affects all small businesses, and even large real world businesses.

A small business needs to actually offer something above and beyond the large businesses. I'm not sure where you've pulled "burger joints" from - restaurants do well because they offer service and food that's above and beyond "burger joint" fare. Same deal with small butchers and food stores - they offer something higher-quality (or they should) to justify their higher prices.

What these stores are doing is offering the exact same product as the larger chains for a 40% markup, and are considerably less convenient to the average consumer. There's nothing there for me. I don't actually want to roleplay in a store with random people - I'd rather do it at home with friends. I wasn't introduced to gaming at a shop, I learnt it from a friend. I don't owe these guys anything.

I don't know where you got this nightmare scenario of no jobs and nothing but burger joints from - we already went through this stuff when supermarkets appeared. I for one am glad I don't have to go to a dozen different shops just to get my groceries, and it's not like the economy collapsed over it. Were you there to smash automatic looms when those were invented as well?

 

[philreed]

The people will just buy online and play at the game store.

Yes, they will. And that's why game stores need to get heavily into selling drinks and snacks. Also, pencils, paper, dice . . . all of the extras that someone may forget at home.

 

[Dice4Hire]

Yes, the line between a service company and a retail company. LGS needs to move more heavily into a service industry style model and not try to exist solely as a retail outlet.

Services are great, but difficult to pull off and require a lot of work, and training on the part of the owner. Retail, simply selling what is in stock is easier (at least it seems to me) but is mroe chancy as the Internet is a str0ng competitor.

Services would be what would bring me to a store. And I feel that providing Internet, drinks nad such, as well as a place to play, are all services.

 

[racoffin]

As far as suggestions for drawing in customers, the big FLGS here (Compleat Games & Hobbies) hosts its own three-day mini cons in-store (with boardgame, RPG, CCG, and minis events), after hours "Indie RPG" game nights, and other special events (e.g., they hosted an auction for which customers could bring in items that other customers bid on, with proceeds being applied to the accounts of contributing customers as store credit).

Also, they shrewdly discounted all third-party D&D 3x material by 30% within days of D&D 4e being announced, ensuring that they still made a roughly 20% profit on those items while moving inventory that would otherwise be collecting dust with the arrival of the new edition. The guy that runs the store really knows the ins and outs of retail, and it shows.

Complete does a pretty good job with events, and Gamer's Haven runs various minis competitions as well, IIRC.

Another way to draw in some customers or at least get some interest going would be to discount a different product, line, or group every unit of time (week, month, whathaveyou) and use it as a loss leader, drawing customers to that line and having them buy the stuff not on sale after they are interested. While you can't go as deep a discount as some of the big box stores or online stores, even a ten percent savings can often be the difference in a sale and the customer walking out.

I try to support those stores that seem interested in the customers around here, and while I don't play in the stores themselves (most seem more interested in MtG and Warhammer games at the moment), the stores are handy to shop in when I am in the area.

I do agree with a previous poster that an area off the main sales floor or games held after hours would be a great idea, for those people wanting a bit more of a mature game (or just not to be in the middle of a busy store while trying to concentrate on the game). And ditto on the comments regarding light, dirt, smell, and so forth. A store that resembles a poorly run porno shop is a fast way to lose patrons.

 

[IanArgent]

OK - I think I may have to trek up to Fair Lawn one of these days. You're about 10 mi/10 min farther away than my *F*LGS (and much closer than my not-so-F-LGS); but I'm not all that impressed by the FLGS. (It has the advantage of being very close to my work though).

I used to come out to your predecessor in the '90s when I was going to college in Hoboken.

Any chance you carry Shadowrun?

 

[racoffin]

Additionally, having the salespeople knowledgeable in more than one game is useful. You might even think about having a binder up front and near the displays with a quick synopsis of what X or Y game is about. Some people shop by impulse and don't know what a certain game system offers or what the core products are. The binder with some well-typed descriptions, some of the product listings off the web, or even reviews can help.

You might also think about putting together different packages (linked to the idea of discounting a product or having it be the Item of The Week/Month/Whatever). Make it your star, make your own "gift basket/box" with the core product for that game, or a selection of paints and brushes plus a few miniatures, and so forth. There are so many products that it can sometimes be overwealming to the gamer. This idea can also help the non-gamer parent/spouse/partner/friend in picking out a gift for the gamer.