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Message: <blockquote data-quote="mlund" data-source="post: 4350071" data-attributes="member: 50304">I don't think that was the issue the post I was replying to addressed. He was talking about one company (Amazon) giving another company (Wizards) some sort of "incentive" to command a unique price-point for their purchases. My point is, there is a not a unique price-point for Amazon created by a scheme of kick-backs and golf-course outings that creates an "Amazon price" and a "not Amazon price."There's a 100,000 unit price a 10,000 unit price, a 1,000 unit price, etc. including variants like: "100,000 units of [D&D Product], 10,000 units of [Other, non-D&D WotC Product]."None of those prices are linked to the customer's identity beyond the volume of units they purchase from the vendor / manufacturer.The LGS is allowed to buy the "Amazon lot" at the "Amazon price." It just isn't in the LGS's best interests to do so. They want a smaller lot so they pay the smaller lot price. If Amazon wants a smaller lot, they ALSO pay the smaller lot price.This ties back into the point I made about why Amazon doesn't selling every product they can get their hands on at a 40%. If they can't clear the inventory fast and in large volume they can't by large lots at large lot prices they can't sell at such a steep discount compared to a regular retailer (who has the convenience of immediate access to stock for the customer).It's been a while since I was behind the counter dealing with WotC products coming into an LGS. I guess back then WotC products were still moving through distributors and wholesalers before they hit the FLGS. I take it Wizards is doing a lot more direct sales to retailers, now?I think you're confusing Buy.com and Amazon.com, if I recall the incident correctly.I've already illustrated why a company buying in huge lots and avoiding the Distributor (Amazon) can feasibly sell at a much lower price them someone who is buying small lots from a Distributor (LGS).You LGS could technically sell at the same price as Amazon, but he'd lose his shirt unless he bought and sold the same volume as Amazon.The old Supply Chain model (which may not apply to some WotC products anymore, apparently) was that one business bought a giant lot (Wholesaler) at the huge lot price. He broke it down into smaller lots for more regional companies and sold it at a mark-up to cover his business's expenses and profits. Those regional businesses (Distributors) in turn broke those lots down into smaller lots for either more narrow Distributors or Retailers, marking it up again to make their profit. Finally the Retailer takes those lots and breaks them down into individual items for sale, marking it up again to make their profit. Have you ever been a preferred customer at your FLGS? Brining in a significant amount of reliable business to my FLGS gets me a discount on what I buy from my Retailer.Here's a question for you: How much revenue do you think Wizards of the Coast sees, on average, from each book with an MSRP of $30 that they manage to sell?- Marty Lund</blockquote>

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