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<blockquote data-quote="zztong" data-source="post: 7798138" data-attributes="member: 6943414"><p>A couple of decades ago I and some friends wrote a book for Hero Games. I vaguely recall they would sell about 2,000 copies of a new supplement and those would come out I want to say quarterly. So 600 a month sounds good, to me the key questions are "What do they make per sale?" and "What are their expenses?"</p><p></p><p>A couple of websites suggest Paizo has about 100 employees. That's around 99 to 99.5 more full-time employees than Hero Games had. Paizo has offices; Hero Games ran out of a basement.</p><p></p><p>The following number are bunk. They're from a different time, a different company, and filtered through my faulty memory. I lay them out here for discussion purposes...</p><p></p><p>We used to talk about making about 12% of cover price. Game stores bought the product at 50% cover, distributors bought at 25% cover. (Everybody doubled their money on a sale.) Of the 25% coming to the game company, half was going out in production costs and paying the artists and authors. I'm sure the model has changed since the 1990s.</p><p></p><p>So, again this is bunk, but applying it to a $60 cover price, $30 price to game store, $15 price to distributor, so $7.50 to Paizo after expenses... except when Paizo makes a direct sale then they get all $60. GenCon sales would have all been direct and they would have sold thousands of copies. Of course, that also assumes Paizo offers no discounts to anyone along the line. Again, my numbers are wrong. They're from an old model and a different company.</p></blockquote><p></p>
[QUOTE="zztong, post: 7798138, member: 6943414"] A couple of decades ago I and some friends wrote a book for Hero Games. I vaguely recall they would sell about 2,000 copies of a new supplement and those would come out I want to say quarterly. So 600 a month sounds good, to me the key questions are "What do they make per sale?" and "What are their expenses?" A couple of websites suggest Paizo has about 100 employees. That's around 99 to 99.5 more full-time employees than Hero Games had. Paizo has offices; Hero Games ran out of a basement. The following number are bunk. They're from a different time, a different company, and filtered through my faulty memory. I lay them out here for discussion purposes... We used to talk about making about 12% of cover price. Game stores bought the product at 50% cover, distributors bought at 25% cover. (Everybody doubled their money on a sale.) Of the 25% coming to the game company, half was going out in production costs and paying the artists and authors. I'm sure the model has changed since the 1990s. So, again this is bunk, but applying it to a $60 cover price, $30 price to game store, $15 price to distributor, so $7.50 to Paizo after expenses... except when Paizo makes a direct sale then they get all $60. GenCon sales would have all been direct and they would have sold thousands of copies. Of course, that also assumes Paizo offers no discounts to anyone along the line. Again, my numbers are wrong. They're from an old model and a different company. [/QUOTE]
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