Why is WotC trying to kill my FLGS?

[Squizzle]

By this logic you say you want your local economy to export whatever is exportable at 100% and only import what it is 100% importable.

Wow, check out that weather! It sure is reductio ad absurdum around here!

 

[Fifth Element]

I'm sorry, but how can anyone in these tough economic times give that up?

This is not a fair statement. Several people have given the specific reasons why they give it up.

For some people, it's an easy decision, one way or the other. Obviously if your cash flow is tight, the discount is more valuable to you than to someone with money to spend.

But "how can anyone give that up?" implies that those that do give it up are making a poor decision. Buying decisions are extremely personal, and everyone has different criteria they focus on.

 

[catsclaw227]

...now that I've joined Amazon Prime.

<tangent>
I am also an Amazon Prime member. What a deal! I use amazon to deliver many of the basic disposables like OTC medicines, diapers, toilet paper, paper towels, etc. Cheaper (and even moreso with a "subscription" to the product) and 2 day shipping is free.
</tangent>

 

[Aeolius]

It isn't just gaming stores. My local aquarium store is shutting down, after 25 years of operation. The owner simply cannot compete with customers who can buy dry goods and livestock cheaper over the internet.

(Yes, he has asked me if I want to buy him out. Yes, I considered it, but I cannot think of a way such an operation could turn a profit.)

 

[frankthedm]

Gas, full retail & 7-10% sales tax is an uphill fight against 37% off, delayed sales tax and free shipping.

 

[Pbartender]

I have a wife and family, I support my mother-in-law and I have a hefty mortgage and two cars. I am the only bread-winner in our house. To be able to buy Martial Power, Draconomicon and Manual of the Planes for $64.51 (no shipping or sales tax) instead of $113.09 ($99.85 MSRP + $7.24 tax + $6 gas money), I can take the $49 and give it to my wife to buy something nice for herself (she likes skin care products and cosmetics), or even better, get a pack of 160 diapers for my daughter. It's not about buying one less pizza. It's about how the money gets shifted around our budget.

I'm not necessarily disagreeing with you here -- I'm not all that far from your situation -- in fact, "how the money gets shifted around our budget" is my whole point...

What I'm saying is that it's all about budgetary priorities. How important is it to you to buy the book locally, rather than online -- is it worth giving up a take-out pizza, or going to the movie theatre with your wife, or a new toy for your kid?

For that matter, how important is it to buy the stupid book at all? Even your discounted $65 for those three books is worth a monthly phone bill, or a utility bill, or three tanks of gas, or half a week worth of groceries.

 

[HelloChristian]

A New Yorker cover from a few months back. I think it's relevant to this discussion.

 

[tenkar]

It is demography and demographics. Those two and economy are not independant. This is what I am trying to say. Everything has its specific roles and influence on the final demographic situation.

I understand you point, but as a consumer i am concerned about two things... price and customer service. If my local game store doesn't offer one or the other I am not going to give them my business, demographics or demography be damned!

On a personal level its a "What's in it for me?" attitude that I have... and I would assume most consumers share.

 

[tenkar]

I'm not necessarily disagreeing with you here -- I'm not all that far from your situation -- in fact, "how the money gets shifted around our budget" is my whole point...

What I'm saying is that it's all about budgetary priorities. How important is it to you to buy the book locally, rather than online -- is it worth giving up a take-out pizza, or going to the movie theatre with your wife, or a new toy for your kid?

For that matter, how important is it to buy the stupid book at all? Even your discounted $65 for those three books is worth a monthly phone bill, or a utility bill, or three tanks of gas, or half a week worth of groceries.

i'm going back to my main issue... unless local is also friendly why should I consider giving them my money? Helping the local economy is not a reason for me as a consumer to avoid getting the best price possible and stretching my dollar. Helping a business that does things right is an reason. FLGS is a business done right, but my nearest is a 40 minute ride each way and $16 in tolls and then gas. Ain't happening unless I have something else in the same generally area that I can piggyback back to the trip.

If a store doesn't want my business enough to fit the definition of a FLGS why should I spend my money encouraging a poor business practice? Because it is local? Because of the local economy? Bah! The only vote I get as a consumer is with my hard earned cash.

 

[Rokes]

The retail markup does not affect WotC's profit, since they do not sell at retail. Or maybe I don't understand your point?


I expect they give volume discounts, though I have no idea how significant they would be.


I realized I left out a very important part of my profit formula above:

Profit = (Margin x Volume) - Overhead

Overhead being costs that do not vary with the level of production. My first formula is for Gross Profit, not Net Profit.

What about initial investment costs? R&D + Tooling Costs