WotC CEO on Internet retailing

[Glyfair]

ICV2 has an interesting article where they interview Loren Greenwood, WotC's CEO:

ICv2 asked Loren Greenwood, President of Wizards of the Coast, his opinions about Internet retailing, discount pricing and the recent Leegin vs. PSKS Supreme Court decision:

Do you feel that online retailers that sell products at a substantial discount from retail are a positive force, negative, or have no effect on the over-all market for your products?

Our business is primarily based on the hobby channel. Everything we do, from how we package our products to our organized play offerings, is tailored to the brick-and-mortar environment. However, we of course recognize the growth of online retailers and that they're here to stay. We know, for example, that many of our brick-and-mortar retailers also do a significant portion of their business online.

If you could reduce the discounted sales of your products on the Internet, would you do so?

Our products are very high involvement and require a depth of support that typically is best served by the brick-and-mortar stores, specifically the hobby channel. Given this requirement, the services and support that come from the stores is essential to keep our business healthy.

Do you have any policies in place, either for your own sales to retailers or for sales from your distributors to retailers that treat online-only retailers differently from brick and mortar retailers?

We have various sales policies and practices tailored to our customers and their specific needs.

What is your reaction to the recent Supreme Court decision, Leegin vs. PSKS, will this change how you manage sales of your products to Internet retailers?

The implications for our business--and others--remains to be seen and we will continue to actively examine it in the context of our current distribution models and internal pricing policies.

 

[frankthedm]

interesting? Four typical non committed question dodging Corp-speak answers hardly qualifies as interesting.

The closest thing to an actual answer was given to this question.

If you could reduce the discounted sales of your products on the Internet, would you do so?

But the actual answer, while saying they value the brick and mortar store, never actually answers the question.

 

[Glyfair]

interesting? Four typical non committed question dodging Corp-speak answers hardly qualifies as interesting.

You have a point. I realize he actually committed to nothing with typical "corporate speak." I really wouldn't expect him to commit to much ("Why yes, we are planning on hitting the internet stores hard at the beginning of next year!")

What's interesting are the hints. Some have complained that the hobby stores aren't important to WotC. While many won't believe a word he says given how non-committal he was overalll, that he would even focus on that says something.

Also, his vague answers certainly hint that WotC is considering such action.

I do admit, the interview with the WizKids CEO on the same topic is more interesting, since they are already doing something.

 

[frankthedm]

I do admit, the interview with the WizKids CEO on the same topic is more interesting, since they are already doing something.

WK has been doing their 'FLGS brick' promotion for years IIRC.

WOTC stopped the 40% discount for Amazon and such for DDM a while ago, before that court decision hit the news. If they really wanted to do the same with D&D books, I can't help but believe they could have done so already.

 

[Glyfair]

WK has been doing their 'FLGS brick' promotion for years IIRC.

Years is a bit long, but that isn't the subject. That they forbid their distributor to sell directly to internet only retailers is.

Here is that interview.

 

[Jackmojo]

I gotta say any company that starts utilizing the Leegin vs. PSKS decision for price controls is gonna lose my business, I already take umbrage at the one industry I'm a regular customer of where this level of manufacturer price control is used (video game console/game pricing) and do my best to circumvent it when possible. Unlike the console video game industry there are plenty of other RPG vendors for me to solicit, and companies that practice this sort of anti-free enterprise business choice are only worthy of scorn and not my consumer dollars.

Jack

 

[DaveMage]

That was hilarious!

Is this going to be a chapter in the Politician's Guide to Answering Questions?

 

[(contact)]

I don't think it was double-speak. It seemed pretty clear to me.

I read that interview as he was saying: "We tailor our business to brick and mortar FLGS, because they support our high-involvement product the best. We recognize that online distribution is here to stay, but we prefer to move our product through local hobby stores whenever possible, because our product needs the hobby stores to stay healthy."

 

[TerraDave]

It was corpo speak...

But, WotC is a strategic player as far as the FLGS are concerned (along with Mayfair and?), they can't just take them for granted. Especially now that they got rid of their own. But they do use other channels. I see most WotC books in the big chain bookstores: Borders and Barnes and Nobles. And they do sell stuff at a discount through them (at Barnes & Noble .com, Exp to Castle Greyhawk has a list price of $35, they are selling it for $28, and members pay $25). Its probaby a key chanel for them, but I am sure it hits the FLGS....but what can you do?

 

[Adso]

I don't think it was double-speak. It seemed pretty clear to me.

Now, I'm a company stooge and all, but don't confuse the lack of Internet opinionated and snark for double-speak. Loren was pretty straight-up and clear, if not somewhat guarded (as we all are when talking on forums and to the gaming press).

Please remember that we are a part of a publically traded company and there is a limit to how detailed we can be with specific plans, initiatives, and internal sales policy. Why? Because those things can have effects on the bottom line, and there is a whole section of our company whose job it is to negotiate with seller, retailer, distributors, vendors, licensers, etc., which is its own game that we didn’t write and has its own rules that we didn't develop (though we try sometimes ). Thus, sometimes we have to be a little careful with our answers.

That said, the interview section given above is not a waste of words. Loren gives some valuable insight on our product and sales philosophy, and it’s really worth taking note of.