Rook's Comics and Games

We have been having some problems with Battlefront Miniatures lately and it got me to thinking about our relationship with the manufactures of the games we sell. First off, some information about the game industry. Most prices in the game industry are determined by the Manufacturers Suggest Retail Price. This is where the price for a product is set by the manufacturer. Of course, I am allowed to sell something for more or less but it is very difficult. The price of the products is usually marked on the package and the manufactures also advertise the products at a certain price. I dislike this kind of pricing. It is easy to use, but it doesn't really allow me to make pricing decisions. I am not really in control of the profitability of my store. I can't really do supply and demand studies and implement that into my product prices. This type of pricing makes it easier for a beginner store owner to make correct decisions but more difficult for a skilled store owner to gain an edge.

The pricing I would like to see on every product is called Net Pricing. This is where the manufacturer just sells you the product. The manufacturer doesn't advertize any specific price and doesn't really care what the retailers are selling things for. This type of pricing is a little more difficult as setting prices for products becomes more of a skilled job for the retailer. You usually see this type of pricing in products like hand soap at Walmart. You can buy the same hand soap at Albertsons but they will probably not be the same price. When the customer sees commercials about the hand soap exact pricing is never discussed.

So, if a manufacturer doesn't offer net pricing, what do I need to get in return to make up for that lost profitability? Games Workshop is a good example of what I am talking about. They have very low minimum order requirements and free shipping with those orders. This means that they process my larger orders as well as my small orders with the same speed and cost to me. Every product Games Workshop sells is always in stock. If a customer wants something, I know I can get it immediately. Games workshop also has a good website and does some advertizing which can help drive customers to my store. They give me a certain amount of free products for tournaments. Finally, they send new products to my store early so that I can increase hype about the new products. All of these things help me to overcome the fact that Games Workshop prices are set at the manufacturer. My profitability is lowered but I get perks to make up for it.

Now, let's contrast this with Battlefront Miniatures, the company that creates Flames of War. Battlefront is another company that sets prices themselves. My biggest complaint about them is there high minimum order requirement for free shipping. The margin on Battlefront products is already very bad (if it was net pricing I would be the person determining my margin). When you add actual shipping costs to that, it gets much worse. Also, we have had problems with products being out of stock. When you combine that with the high free shipping minimum order it has been very difficult for us to order products profitably. Finally, we don't get great support from Battlefront for tournaments or events. It is difficult (if not impossible) to get free products for events. Battlefront does makeup monthly scenarios for store run events which is a great idea but it is just not enough.

My biggest complaint with the game industry is that , for the most part we don't have net pricing on our products. I understand the reasons for MSRP and that it was valid in the founding years of the industry but I think it hurts well run long term stores. Some manufactures like GW seem to realize this and try to make up for it with other perks. Some manufacturers like Battlefront don't seem to understand this concept. While I am not upset personally, as a business owner I have to make decisions. Battlefront has failed to understand what is good for the industry and we will be dropping them as a product line.