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Death of the LGS
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<blockquote data-quote="mlund" data-source="post: 4346627" data-attributes="member: 50304"><p>The fact of the matter is that there is absolutely no reason to buy certain products from local retailers. All the talk about job-loss and the death of Main Street is a pile of horse-hockey. There's no reason for a Main Street full of businesses that do nothing more than play middle-man, buying from a distributor and selling on a mark-up. The idea that something like that has to exist is driven by reactionary fears, nostalgia, and a very short-sighted view of history.</p><p></p><p>"Main Street" killed the "Market Place" model that existed for centuries prior to that. Back in the 70s and 80s everyone pitched a reactionary fit over the "Shopping Mall" model that "threatened to destroy Main Street" and in the 90s people branded "Big Box Stores" the Devil (though they are always sure to mention Wal-Mart by name and never Target). In this new century people are worried about the Internet Business. So it goes, ever on.</p><p></p><p>When you sell a product that needs no supporting services and is can be shopped for sight unseen you're playing the Cost vs. Convenience game. When you try to move a big-ticket item at at 40% more than the competition can do while still turning a profit, you lose. You deserve to lose. Crying to the government to impose price controls makes you an even bigger loser. Little-ticket items can be sold at bigger margins for convenience (pay $1 for a pencil at a game store or candy) because someone's time is worth more to them than the $0.50 they could save buying from the lowest bidder.</p><p></p><p>Frankly, if the draw of the Game Store is Convenience and Service, then you need to sell <strong>Convenience</strong> and <strong>Service</strong>. The points made about good customer service habits is critical. A clean, inviting atmosphere is crucial. Use of service facilities such as table space need to be tied to either fees or retail dollars. Game stores can make money off of tournaments and hosting - something Online Retailers and Big Box Stores can't do. You've also got the inside line on small-ticket sales for accessories, food, and beverages. You <strong>must</strong> capitalize on these!</p><p></p><p>I remember visiting a place in New Mexico for an L5R Kotei and being taken aback at it. The place was basically a coffee bistro with retail shelves in the back half of the area. The tables were just as good for eating, drinking, and doing the crossword puzzle as they were for slapping down cards or going on a dungeon crawl. The place was clean, santitary, and had well-dressed and well-mannered support staff. They had free refills on soda purchases during tournament events. Yes, their coffee, soda, cookies, etc. were overpriced compared to the grocery stores down the street but they did a very brisk business because they understood their business model.</p><p></p><p>A lot of LGS and Main Street shops never understood the fundamental underpinnings of their business model in the market. That's why they failed so spectacularly.</p><p></p><p>- Marty Lund</p></blockquote><p></p>
[QUOTE="mlund, post: 4346627, member: 50304"] The fact of the matter is that there is absolutely no reason to buy certain products from local retailers. All the talk about job-loss and the death of Main Street is a pile of horse-hockey. There's no reason for a Main Street full of businesses that do nothing more than play middle-man, buying from a distributor and selling on a mark-up. The idea that something like that has to exist is driven by reactionary fears, nostalgia, and a very short-sighted view of history. "Main Street" killed the "Market Place" model that existed for centuries prior to that. Back in the 70s and 80s everyone pitched a reactionary fit over the "Shopping Mall" model that "threatened to destroy Main Street" and in the 90s people branded "Big Box Stores" the Devil (though they are always sure to mention Wal-Mart by name and never Target). In this new century people are worried about the Internet Business. So it goes, ever on. When you sell a product that needs no supporting services and is can be shopped for sight unseen you're playing the Cost vs. Convenience game. When you try to move a big-ticket item at at 40% more than the competition can do while still turning a profit, you lose. You deserve to lose. Crying to the government to impose price controls makes you an even bigger loser. Little-ticket items can be sold at bigger margins for convenience (pay $1 for a pencil at a game store or candy) because someone's time is worth more to them than the $0.50 they could save buying from the lowest bidder. Frankly, if the draw of the Game Store is Convenience and Service, then you need to sell [B]Convenience[/B] and [B]Service[/B]. The points made about good customer service habits is critical. A clean, inviting atmosphere is crucial. Use of service facilities such as table space need to be tied to either fees or retail dollars. Game stores can make money off of tournaments and hosting - something Online Retailers and Big Box Stores can't do. You've also got the inside line on small-ticket sales for accessories, food, and beverages. You [B]must[/B] capitalize on these! I remember visiting a place in New Mexico for an L5R Kotei and being taken aback at it. The place was basically a coffee bistro with retail shelves in the back half of the area. The tables were just as good for eating, drinking, and doing the crossword puzzle as they were for slapping down cards or going on a dungeon crawl. The place was clean, santitary, and had well-dressed and well-mannered support staff. They had free refills on soda purchases during tournament events. Yes, their coffee, soda, cookies, etc. were overpriced compared to the grocery stores down the street but they did a very brisk business because they understood their business model. A lot of LGS and Main Street shops never understood the fundamental underpinnings of their business model in the market. That's why they failed so spectacularly. - Marty Lund [/QUOTE]
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