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<blockquote data-quote="Dannyalcatraz" data-source="post: 2398737" data-attributes="member: 19675">What we need, and I cannot provide, is an example of what a typical LGS pays for a DMG II or Heroes of Battle as compared to Amazon's price for the same product.My guess is that Amazon pays WOTC (much) less/unit than the LGS because it:1)&nbsp; Has lower overhead because it has minimal physical plant and fewer employees/volume of product moved.2)&nbsp; It has the economies of scale that allows it to order in bulk.3)&nbsp; It can negotiate a lower price because of its market power.4)&nbsp; It can negotiate favorable terms in its contracts because of market power, and manipulate/violate those terms with impunity.5)&nbsp; Amazon absolutely does not need WOTC (or any other RPG)&nbsp; products.&nbsp;One could counter that Hasbro (WOTC's current parent company) has significant market power.&nbsp; While this is true, Amazon' annual sales of $6,921.1M eclipse Hasbro's $2,997.5M (source, Hoovers.com).&nbsp; If Hasbro found itself going to war in every WOTC vs Amazon contract negotiation-as well as all the other Hasbro products- its more likely that Hasbro would find divestiture of WOTC to be preferable.</blockquote>

[QUOTE="Dannyalcatraz, post: 2398737, member: 19675"] What we need, and I cannot provide, is an example of what a typical LGS pays for a DMG II or Heroes of Battle as compared to Amazon's price for the same product. My guess is that Amazon pays WOTC (much) less/unit than the LGS because it: 1) Has lower overhead because it has minimal physical plant and fewer employees/volume of product moved. 2) It has the economies of scale that allows it to order in bulk. 3) It can negotiate a lower price because of its market power. 4) It can negotiate favorable terms in its contracts because of market power, and manipulate/violate those terms with impunity. 5) Amazon absolutely [I]does not need [/I]WOTC (or any other RPG) products. One could counter that Hasbro (WOTC's current parent company) has significant market power. While this is true, Amazon' annual sales of $6,921.1M eclipse Hasbro's $2,997.5M (source, Hoovers.com). If Hasbro found itself going to war in every WOTC vs Amazon contract negotiation-as well as all the other Hasbro products- its more likely that Hasbro would find divestiture of WOTC to be preferable. [/QUOTE]

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