I feel like I am spamming the thread since I didn't wrap up my responses in one ultra-mega post.
Barak said:
When we buy stuff at Amazon, we don't take any money from the people who produces the books. We take money away from distributors and LGS. In fact, in many case we give -more- money to the people who produces the books, since, most of the time, the money "saved" is used to buy -more- books, anyway. I know there's a quite a few gaming books I own I wouldn't have bought had I not gotten most of my books through Amazon.
I'm getting sorta tired of the mentality that some people have of grouping people who buy from Amazon only slightly higher than people who download illegal PDFs.
This isn't entirely true because of the way larger resellers do business. To some degree, the distribution channel is also becoming a problem source because they are trying to execute business in the same manner. It is becoming endemic and hurts small publishers more than large publishers.
In a better world, things would probably work like this.
Product is released within 1 week, that product is in stores. Within 21 days, the first sales cycle has sold through. Store owner is paying the dsitrbutor within 3 days, the distributor is paying the publisher within 4 days of that. This still puts the first dribbling of cash flow back to the publisher in excess of 30 days! But it is better than what I suspect happens now. Optimally, everyone would have positive cash flow within 30 days and the second sales cycle would be running to finish off backstock inventory.
Remember folks, businesses carry a certain line of credit to other businesses. They have to given the way cash flow works.
But this is not the way things are happening right now! Publishers might not see their accounts receivable fulfilled for 90 days, 120 days, ever! Last year one distributor went out of business and publishers never got paid! So you might walk past a book in the local store that the store owner paid for, but the publisher never saw any of that money! That is how the distribution channel has hurt our hobby.
You might think this is a great example of why the hobby should ditch the hobby distribution channel and go with the book channel right? Well, not necessarily. When I worked at the local independent bookstore, we had a terrible time competing with the big resellers. You see, while we had to pay bills within a reasonably short period of time, the big booksellers didn't! The big booksellers would negotiate free shipping, to each store. (No warehousing costs = more efficient) The big booksellers would negotiate larger payment windows. (Hold onto your money as long as possible.) The big booksellers would negotiate much more lenient return policies. (If it doesn't sell, they don't ask for a refund, they take it off the unpaid invoice.) This sets up an environment where the publisher might not see one payment for a book until 180 days after it was sold to the reseller. Now if the publisher went back and asked for payment sooner, the reseller might agree to do that. But they would do that at pennies on the dollar. (In essence, a secondary discount.)
How does a small publisher compete in that market? If you are an RPG publisher, how do you sell your books knowing you won't see a penny from that sale for half a year? No cash flow means you can't pay people. No pay to artists or writers. No rent. No electricity. No water. No food.
While it makes sense that buying more at Amazon would mean more money to the publisher, that isn't necessarily the case. It means more money for Amazon! But Amazon might be positioned to the point where they are demanding more and more concessions from the publisher. So while the retail price is lower, Amazon is not cutting very far into their profit margin, they are demanding that the publisher cut into the publishers profit margin. They might be doing that through shipping, extended receivables, return policies, and "early payment discounts". All the while, the publisher is in negative cash flow for several months. It takes an efficient business to meet those demands. It takes a big business to eat the cash flow for that long. It takes a big, efficient business to be successful in that situation. How many game companies are able to do that?
Mind you, I am not trying to knock on game companies! These are challenges for all businesses in all industries. But this industry is largely run by people that love the hobby, not the brutal efficiencies of business.
Barak, I don't fault your mentality regarding Amazon. From the consumer perspective it is a wonderful outlet! I understand that. But there is a lot going on behind the scenes for any business. I have a slightly different perspective due to differing experiences in life. I agree that it would be cool to get Ptolus at Aamzon for a great price. But I can see many ways in which this would not be advantageous to Malhavoc, or White Wolf. Very few of them have to do with a discount to the customer. Most have to do with the discount to the reseller that might be demanded just to put your book in their store.
Obviously I don't have the full picture. I am not affiliated with any of the involved parties in any manner other than being a customer. But I do hope that I can share some of my experiences to demonstrate why this is a complex issue at a troubling time for our hobby.