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Why I refuse to support my FLGS

I'm new to the boards but I wanted to comment on this thread since it looked particularly inviting; here's hoping that I don't get flamed to high heaven.

I'm something of an old-school gamer, you might say, but I've never known a business that wasn't capable of passing on some kind of discount to its customers, even a minimal discount. The explanations I'm reading, however, make one feel that gaming stores are somehow an the exception to the norm. I find that hard to believe, no matter how much math people are willing to commit to their posts. Frankly, I don't think people are asking for much when it comes to a discount. If 10% is unreasonable, then make it 7%, or even 5%, or even 3% off. I think what people want to see is some kind of effort to show that gaming stores care about their customers.

Politeness is good. Customer service is good. A lot of stores suck in those areas, but I think it all comes down to money in the end (at least for those short of coin), and if gaming stores want to be competitive, then they should find a way to compete. I hate to use a darwinian analogy, but that's always been the nature of business, mega-stores or not.

The gaming store nearest me (self-owned and operated) is more of a hang out than a hard core business. They make most of their money in miniatures, I think, but they also carry books, of which they sell a fair number. Do I buy the books? No, I can't say that I do. I don't make that much to begin with, but I do occasionally buy a back issue of dungeon from them, and that's about it, really.

My real shopping happens online, whether it's eBay or Amazon. I would happily give my money to the FLGS if they could match those prices, but were I to do so at current prices, then that means one less book I could have purchased from Amazon.

Wizards piublishes a lot of expensive hardcover books these days. I'm trying to keep up. I can't do it at a FLGS.
 

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The 50% markup rule doesn't apply in competitive fields of business. To have a 50% markup, you have to have significant bargaining power combined with a lack of reasonable substitutes. The more expensive the product, the more a potential customer will balk by 1) not purchasing, 2) buying a substitute, 3) invest time in doing market research to find the same product for less...and this is only compounded by the internet.

Exceptions to that include goods for which there is no substitute- custom- made/rare goods or necessities.

The game store industry is much more competitive, especially in the internet age.

The nature of the product it sells is:

Appeals to a small market: Gamers are a small % of the total population, probably ≤ 1%. For a city the size of Dallas, that's about 11,800 gamers. I'd guess that supports 2-3 dedicated game shops. Add another 20000 for Fort Worth and all the suburbs. Lone Star Comics has 6 locations, and is as much a comic book store as games, Gen X and Game Chest have 1 apiece- there may be others that I don't know about. Borders and B&N blanket this area, and places like Target, Wal-Mart and K-Mart are making inroads into selling RPG/CCGs- and that doesn't include the online retailers and used book stores. A LGS in the Dallas/FW area probably has less than 1000 regular customers.

Many substitute products in the market: if you don't like the price of D&D books, there's lots of other fantasy games out there to try... Add to that Music, Sports, regular entertainment reading, TV, video games, porn, online MMRPGs, etc, and you have something that has a LOT of competition. From personal experience, I'd guess that the average gamer has AT LEAST 2 of the things I listed as competitors for his time and money, and probably some I didn't list.

Its a "luxury item" (entertainment), so it has low price elasticity. If the price is too high, sales drop off dramatically, and no retailer has a monopoly on selling the product. However, the largest retailers have significant market power and can dictate contractual terms to their suppliers (read discounted price to acquire product) and can cross-subsidize (lower price to consumer). Price differentials you percieve from location to location probably have more to do with discounts and cross subsidy than with markups.

As for sales staff...

I just concluded a study that included an interview with a small sole proprietorship (not a game store). He had hired people within the hobby his store serviced as salesmen. He found over 20 years that he was better off with people who had people skills and knew how to sell- he could always train them to sell his product- as opposed to fellow hobbyists.

Compare to a typical game store- usually staffed by hobbyists under 20, with little or no sales experience. And do we REALLY need to discuss the stereotypical gamer's people skills?

Sales staff- knowledgeable, personable, and polite- are ANY business' #1 asset after having a great product.
 
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scourger said:
I think I'll keep bugging my FLGS for Tour of Darkness rather than ordering it online as I could have for the past 6 weeks.

If I want something, my FLGS will order it for me. :)

Of course, for me, the reason you don't visit your FLGS is because there's no F. If Amazon.com is more personable, then any LGS needs to reconsider its customer service.
 

Some guy from Ohio said:
Wow. No hate intended. I just think that if a business model works, the business suceeds, and if it doesn't, it dies. If David kills Goliath or vice-versa, then so be it.

And if we had a true free market, that'd probably be true. We don't. Too many of the large players in the market are involved in controlling the information that everyone has about the market. As a result, big companies and little businesses don't play by the same rules--much moreso than just things like economies of scale would account for.
 

I'm new to the boards but I wanted to comment on this thread since it looked particularly inviting; here's hoping that I don't get flamed to high heaven.
Welcome aboard Waldorf. I've been here for years (I know my post count does not reflect that, but I am rarely moved to speak), and I think you will find it a pretty friendly and mostly non-flamer board. :)
 

Dannyalcatraz said:
The game store industry is much more competitive, especially in the internet age.

Except in the Atlanta area. Even though it's a major city, there isn't a single well-run gaming store that actually gives a damn about whether or not I shop there...to the extent that I'm almost puzzled by the notion that I should feel guilty about not patronizing them.
 

Some guy from Ohio said:
Welcome aboard Waldorf. I've been here for years (I know my post count does not reflect that, but I am rarely moved to speak), and I think you will find it a pretty friendly and mostly non-flamer board. :)

This is true. Clearly I disagree with Some guy from Ohio on some economic issues around the FLGS, yet neither of us has needed to resort to asbestos BVDs. And I value that. The darn things chafe.
 

I'm not surprised about Atlanta.

Our hobby doesn't exactly attract a huge minority audience, and Atlanta is one of America's "blackest" cities, by percentage of population. New Orleans, my old hometown, is another one like that.
 

Toys R Us will not let you game in their store.
Walmart will not attend the GAMA Trade Show and come back with information about the rest of the year's releases.
Amazon will not teach you how to play a game you might like, or help you find other gamers.
Online stores don't let you look in the book before you buy it. They don't have a rack of miniatures available so you can get just the right figure for your character.

If a product is $49.99 SRP, your FLGS can get it in for $25.00 - $26.50, and they need to make that margin to stay open, and provide you with the services that you can get from a FLGS and not a mass-market or electronic outlet. Walmart doesn't care if they make a tiny margin, because their entire business model is based upon getting you to come in to buy everything at a low price.
 

Janx said:
It's systems like that that show how clueless shop owners are. The card systems end up being more work for the clerk, and likely to get lost. Just offer a flat 10% discount for regular customers and be done with it. Much simpler to deal with.

How do you define a regular customer. and I think loosing the card is something they bank on.
 

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