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<blockquote data-quote="Gizzard" data-source="post: 260757" data-attributes="member: 527">&gt; Result: You make your margin on product 1, you fail to &gt; make your margin on 2 and 3 [...] you lose your job &gt; and maybe a few Elves do to.I follow all this logic, but in Seans bean world parable he pointed out that:&quot;But,&quot; the elves protested, &quot;forty books still a respectable number! Why, only a few years ago, we were lucky to sell 10 copies of one of our books. Forty books is wonderful!&quot; It seems to me that Hasbro is having trouble explaining to its elves, ex-elves and the public why it margins are what they are.&nbsp; Which leads into this...&gt; Fortunately you invented a thing called the d20 license &gt; which allows other companies to make some of those &gt; low margin products you can't ...It sounds like the elves in the story were a bit surprised when 40 books was a &quot;low margin&quot; product under Hasbro when a few years before it would have been magnificent.&nbsp;&nbsp; And this is going to be the interesting thing to watch - if Hasbro only wants to make 70-100 unit products, what will its annual catalog look like in 2 years?&nbsp;&nbsp; Is this goal sustainable?&nbsp; My guess is that it is not and they will have to readjust their strategy (or sell off WotC to someone who is willing to take the profits on a 40 unit run.)</blockquote>

[QUOTE="Gizzard, post: 260757, member: 527"] > Result: You make your margin on product 1, you fail to > make your margin on 2 and 3 [...] you lose your job > and maybe a few Elves do to. I follow all this logic, but in Seans bean world parable he pointed out that: [I]"But," the elves protested, "forty books still a respectable number! Why, only a few years ago, we were lucky to sell 10 copies of one of our books. Forty books is wonderful!" [/I] It seems to me that Hasbro is having trouble explaining to its elves, ex-elves and the public why it margins are what they are. Which leads into this... > Fortunately you invented a thing called the d20 license > which allows other companies to make some of those > low margin products you can't ... It sounds like the elves in the story were a bit surprised when 40 books was a "low margin" product under Hasbro when a few years before it would have been magnificent. And this is going to be the interesting thing to watch - if Hasbro only wants to make 70-100 unit products, what will its annual catalog look like in 2 years? Is this goal sustainable? My guess is that it is not and they will have to readjust their strategy (or sell off WotC to someone who is willing to take the profits on a 40 unit run.) [/QUOTE]

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