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General Tabletop Discussion
*TTRPGs General
Is the age of discounts over?
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<blockquote data-quote="Thornir Alekeg" data-source="post: 3621376" data-attributes="member: 15651"><p>I don't believe for a moment that this ruling will change one thing about buying gaming goods. If large retailers like Amazon are gaining competetive advantage by negotiating a lower wholesale cost from publishers/distributors, then nothing will change. The publisher/distributor already has the power to not sell to these large retailers at a lower price, they choose not to because of the power these retailers have. The publisher setting a minimum retail price will not prevent the retailers from continuing to negotiate a lower wholesale price (and thereby increasing the profits of the retailer).</p><p></p><p>If large retailers gain their competetive advantage from lower overhead, rather than a lower negotiated wholesale price, and thereby can offer lower prices than places like the FLGS, a minimum retail price will not actually affect the large retailers and help the FLGS. The FLGS will not make any more money than they did before off a single sale. </p><p></p><p>While Dancey believes that the level playing field on the price of an item will move some portion of the market share from Amazon or other large retailers back to the FLGS, I do not agree. The reason? Amazon will make <em>more</em> profit on the sale of that same single item, and in order to maintain a competetive advantage they will offer other incentives to consumers. Maybe free shipping will no longer be a $25 minimum order and slower than standard shipping. Maybe they will offer discount coupons - Borders and B&N do this now - "$5 off a purchase of $25 of gaming supplies" or "earn a $5 gift certificate for every $50 in gaming pruchases". Coupons do not change the minimum sale price of an item, so as long as they are not targeted to a specific item, this ruling will not prevent the large retailers from offering them. The FLGS still will not be able to compete on price.</p></blockquote><p></p>
[QUOTE="Thornir Alekeg, post: 3621376, member: 15651"] I don't believe for a moment that this ruling will change one thing about buying gaming goods. If large retailers like Amazon are gaining competetive advantage by negotiating a lower wholesale cost from publishers/distributors, then nothing will change. The publisher/distributor already has the power to not sell to these large retailers at a lower price, they choose not to because of the power these retailers have. The publisher setting a minimum retail price will not prevent the retailers from continuing to negotiate a lower wholesale price (and thereby increasing the profits of the retailer). If large retailers gain their competetive advantage from lower overhead, rather than a lower negotiated wholesale price, and thereby can offer lower prices than places like the FLGS, a minimum retail price will not actually affect the large retailers and help the FLGS. The FLGS will not make any more money than they did before off a single sale. While Dancey believes that the level playing field on the price of an item will move some portion of the market share from Amazon or other large retailers back to the FLGS, I do not agree. The reason? Amazon will make [i]more[/i] profit on the sale of that same single item, and in order to maintain a competetive advantage they will offer other incentives to consumers. Maybe free shipping will no longer be a $25 minimum order and slower than standard shipping. Maybe they will offer discount coupons - Borders and B&N do this now - "$5 off a purchase of $25 of gaming supplies" or "earn a $5 gift certificate for every $50 in gaming pruchases". Coupons do not change the minimum sale price of an item, so as long as they are not targeted to a specific item, this ruling will not prevent the large retailers from offering them. The FLGS still will not be able to compete on price. [/QUOTE]
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