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Liz Schuh on Dragon/Dungeon moving to the web
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<blockquote data-quote="Raven Crowking" data-source="post: 3496958" data-attributes="member: 18280"><p>Absolutely correct.</p><p></p><p>And I am under zero obligation not to grouse about their decisions. In a free market economy, my right to grouse and to not pony up to their new product are the best means I have to try to induce WotC to make (or allow to be made) the producs I desire.</p><p></p><p>OTOH, there is a big difference between collecting licensing fees and doing work in-house. Presumably, WotC collected what it considered a reasonably fee whether the mags succeeded or not. The mags succeeded beyond expectation. If one then concludes that WotC pulled the licensing deal because they weren't making the expected margin.....Well, that requires some steps between A and B that seem to be omitted.</p><p></p><p>When you had 300 jobs lost, that was presumably because the company was spending X dollars, and expected a profit margin of X + Y. The jobs were part of the X dollars spent. The company knew that they could make X + Y if they spent X elsewhere, and therefore did so.</p><p></p><p>Similarly, as a store owner, I expect to make an average markup of 100% of eeverything I sell. I buy for half retail cost, and sell for retail cost. Part of that markup is profit, and the rest is expense (store location, advertising, whatever). If I am offered the chance to sell something where the cost to me is 75% of retail, it isn't generally worth my while -- I would be far wiser to stock up on items that I make a higher return on.</p><p></p><p>OTOH, if someone were to come to me and say "We'd like to produce Golden City Comics Magazine, and will pay you Z + W% of profits from the magazine to do so" I would have to have a compelling reason not to do so. Indeed, I would have to have a compelling reason to not renew the license -- either I thought that the magazine was interfering with my primary business (either due to competition or due to bringing ill repute upon my store), or I thought I could get a better licensing deal elsewhere.</p><p></p><p>"Profit margin" doesn't come into in the same way (unless I think that I can get a better licensing deal elsewhere) because this is pure profit with no overhead.</p><p></p><p>But, like I said, YMMV, and obviously does.</p></blockquote><p></p>
[QUOTE="Raven Crowking, post: 3496958, member: 18280"] Absolutely correct. And I am under zero obligation not to grouse about their decisions. In a free market economy, my right to grouse and to not pony up to their new product are the best means I have to try to induce WotC to make (or allow to be made) the producs I desire. OTOH, there is a big difference between collecting licensing fees and doing work in-house. Presumably, WotC collected what it considered a reasonably fee whether the mags succeeded or not. The mags succeeded beyond expectation. If one then concludes that WotC pulled the licensing deal because they weren't making the expected margin.....Well, that requires some steps between A and B that seem to be omitted. When you had 300 jobs lost, that was presumably because the company was spending X dollars, and expected a profit margin of X + Y. The jobs were part of the X dollars spent. The company knew that they could make X + Y if they spent X elsewhere, and therefore did so. Similarly, as a store owner, I expect to make an average markup of 100% of eeverything I sell. I buy for half retail cost, and sell for retail cost. Part of that markup is profit, and the rest is expense (store location, advertising, whatever). If I am offered the chance to sell something where the cost to me is 75% of retail, it isn't generally worth my while -- I would be far wiser to stock up on items that I make a higher return on. OTOH, if someone were to come to me and say "We'd like to produce Golden City Comics Magazine, and will pay you Z + W% of profits from the magazine to do so" I would have to have a compelling reason not to do so. Indeed, I would have to have a compelling reason to not renew the license -- either I thought that the magazine was interfering with my primary business (either due to competition or due to bringing ill repute upon my store), or I thought I could get a better licensing deal elsewhere. "Profit margin" doesn't come into in the same way (unless I think that I can get a better licensing deal elsewhere) because this is pure profit with no overhead. But, like I said, YMMV, and obviously does. [/QUOTE]
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