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<blockquote data-quote="Banshee16" data-source="post: 2987512" data-attributes="member: 7883"><p>Profit is your difference between your revenue and your costs...correct. But profitability targets are set by Hasbro management, who are responsible to Hasbro's shareholders, who really don't give two figs about D&D, as long as it makes them money. That being said, the overhead in a larger company such as Hasbro means that they have to do *that much* better, to make a profit.</p><p></p><p>A smaller, leaner company, with lower expenses, could generate a higher profit. That's what I'm getting at.</p><p></p><p>It's basic for business. As businesses grow, some things that they used to do become harder and harder to do cost-effectively enough to generate a profit.</p><p></p><p>Hasbro might have all kinds of things that smaller companies don't need to worry about....higher salaries, more generous vacation and time off policies, health plans, share purchasing plans, higher rent for their offices etc. All of these cost money, and are less likely in smaller companies...hence, lower overhead.</p><p></p><p>If you can only theoretically sell a D&D book for $35, and it's costing you $20 to make it, and another company will sell it for $30, but only take $10 to make it because they've got fewer staff, employees are working during their time off to make a project succeed etc. then the smaller company will be more successful at publishing that book. Maybe not more successful as a company, but more successful with publishing that type of product. It just becomes a matter of the company's expenses outgrowing the product line.</p><p></p><p></p><p></p><p></p><p></p><p>Correct. I think Hasbro is too big for D&D. The game doesn't garner enough attention, and they either need to yank prices to the point that sales start dropping, find some way to cut costs maybe by using cheaper printers, outsourcing the writing to India, or revising their business model to make it more like CCGs, in order to generate the profit they want. In so doing, they might irreparably damage the game. It is a gamble. Hence, I'd prefer they sell it to a smaller, financially stable company, who will treat it as their most important job, instead of job #314.</p><p></p><p>Banshee</p></blockquote><p></p>
[QUOTE="Banshee16, post: 2987512, member: 7883"] Profit is your difference between your revenue and your costs...correct. But profitability targets are set by Hasbro management, who are responsible to Hasbro's shareholders, who really don't give two figs about D&D, as long as it makes them money. That being said, the overhead in a larger company such as Hasbro means that they have to do *that much* better, to make a profit. A smaller, leaner company, with lower expenses, could generate a higher profit. That's what I'm getting at. It's basic for business. As businesses grow, some things that they used to do become harder and harder to do cost-effectively enough to generate a profit. Hasbro might have all kinds of things that smaller companies don't need to worry about....higher salaries, more generous vacation and time off policies, health plans, share purchasing plans, higher rent for their offices etc. All of these cost money, and are less likely in smaller companies...hence, lower overhead. If you can only theoretically sell a D&D book for $35, and it's costing you $20 to make it, and another company will sell it for $30, but only take $10 to make it because they've got fewer staff, employees are working during their time off to make a project succeed etc. then the smaller company will be more successful at publishing that book. Maybe not more successful as a company, but more successful with publishing that type of product. It just becomes a matter of the company's expenses outgrowing the product line. Correct. I think Hasbro is too big for D&D. The game doesn't garner enough attention, and they either need to yank prices to the point that sales start dropping, find some way to cut costs maybe by using cheaper printers, outsourcing the writing to India, or revising their business model to make it more like CCGs, in order to generate the profit they want. In so doing, they might irreparably damage the game. It is a gamble. Hence, I'd prefer they sell it to a smaller, financially stable company, who will treat it as their most important job, instead of job #314. Banshee [/QUOTE]
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