What's the Deal with GriefCom?

[Umbran]

The FLGS I buy my DDM in just moved into another space that is larger.

Well, good for them. Mine realized that even being a full Sci-Fi and game store wasn't enough for long-term survival, so he had to move to a larger, but cheaper place. Of course, this move takes him out of the major shopping area he was in, to an out of the way location...

Small businesses in competition with bigger retailers are always going to be in a bit of a bind. That's the way business works. Sometimes, they can succeed, sometimes not.

 

[Dannyalcatraz]

While it's possible, it requires a bit too much tinfoil for me to believe that Amazon would lose money on the sale of RPG books to drive FLGS out of business, given how small potatoes RPG books are for them overall.

A large retailer can use several methods to keep afloat while engaging in predatory pricing.

The easiest for a multinational is to sell at a slightly higher price in most of its markets, while simultaneously dropping its prices in the market its trying hardest to monopolize.

Example: I have heard, but cannot confirm, that prices at some online retailers in Canada are higher than can be accounted for due to the exchange rate between the Canadian and US dollars. I haven't heard about such differences in other countries.

Assuming again that Amazon is being an economic bully, it isn't neccessarily the RPG market that Amazon is trying to dominate. One other thing that FLGSs do better (or at least, more often) than online retailers is get access to certain specialty products. There is a Horrorclix Cthulhu mini you can only win by entering tournaments- most of which are sponsored by game stores, for example.

There are also sci-fi/fantasy/horror memorabilia that only show up in those stores as well- autographed books, limited run special editions, animation cells, movie props, etc., sometimes even special promotional items and tickets connected to movie premiers. Amazon and the others don't get those (at least, not first hand)- game stores do.

But the fewer game stores there are, the more access Amazon and others would have to those specialty items...

 

[Kae'Yoss]

I readily admit I am not well versed in WotC's practices at the moment. But it seems unlikely that very many gaming resellers (online or B&M) in the US are purchasing directly from WotC. They are purchasing from the distribution chain. Most people that tell you WotC won't sell to them are correct. But the reasons might not be as apparent, or accurate.

The thing is: Wizards is telling the distributors not to sell to non-B&M stores. If I remember it correctly, there are some allusions about those distributors not getting any more stuff from Wizards if they sell to online stores.

 

[Barak]

Example: I have heard, but cannot confirm, that prices at some online retailers in Canada are higher than can be accounted for due to the exchange rate between the Canadian and US dollars. I haven't heard about such differences in other countries.

Finally a subject in which I have expertise, being a canadian living in the states who frequently goes back home!

These days, the price of virtually everything in Canada is somewhat higher than can be accounted for by the exchange rate. Heck, that's easy for everyone to see. Take a book that has both suggested prices listed (most do), convert with the exchange rate, and you'll see a big discrepancy. This is in part due to the fact that the exchange rate lowered a lot lately, but has always been the case to some degree. But since salaries are higher too, it works out somewhat to the same.

 

[Umbran]

A large retailer can use several methods to keep afloat while engaging in predatory pricing.

But more is the question - is it worth the bother? I am not sure that, even with the specialty items mixed in, the deal is worth it to Amazon to pursue in such a manner. We don't have any data, of course, but it just sounds like the effort (and perhas even more - the danger, if they are caught employing anti-competetive or domineering tactics) is worth the additional sales.

 

[edbonny]

Well, everything except proof readers, anyhow.

I believe the term is proofreaders (1 word), not proof readers (2 words). Not that I ever held a job as one.

 

[BSF]

The thing is: Wizards is telling the distributors not to sell to non-B&M stores. If I remember it correctly, there are some allusions about those distributors not getting any more stuff from Wizards if they sell to online stores.

I would love to see an actual letter/memo/email with WotC stating that. I would think such a policy would be legally actionable by the distributors and their customers (resellers). Though, the mere presence of such a communication would potentially hold enough bad publicity to make things uncomfortable for WotC.

 

[Dannyalcatraz]

But more is the question - is it worth the bother?

I don't know the size of the markets in question, so I can't answer.

Other businesses that have been caught have ranged from foreign automakers trying to get market share in the USA (obviously worth it) to large discount retailers that destroy the downtowns of small towns by opening a store, then closing it after all the competitors are gone in order to get the town's inhabitants to go to another town's branch of their store (questional payoff for the investment).

The only way you can tell is with actual access to relevant numbers for crunching.

...Wizards is telling the distributors not to sell to non-B&M stores.

I would love to see an actual letter/memo/email with WotC stating that. I would think such a policy would be legally actionable by the distributors and their customers (resellers).

It would depend upon the exact wording of such. Its perfectly legal to give a distributor something like a limited exclusive right to distribute something in a given area for a set time. Its also legal to restrict resale of a product to certain classes of businesses or people, as long as its not discriminatory.

 

[pogre]

I would love to see an actual letter/memo/email with WotC stating that. I would think such a policy would be legally actionable by the distributors and their customers (resellers). Though, the mere presence of such a communication would potentially hold enough bad publicity to make things uncomfortable for WotC.

Games Workshop did it.

 

[pogre]

For what it's worth - the capped discount from Alliance on WOTC and TSR is 40% (price for stores = 60% of retail). Even a FLGS with very limited purchases from Alliance (four orders a year say) would receive that discount. Further, because it's capped, volume earns the store no discount on those products. That sends a signal that WOTC is not quite as FLGS helpful as suggested here.

I don't know much about Amazon's purchasing methods, but I guarantee you they are getting at least the distributor rate on most products. That would be around 40% of retail.