Re: Economic Question

From: Eric Rowe <rowe_at_chaosium.com>
Date: Thu, 17 Feb 2000 20:27:56 -0800


>My apologies for an off topic (i.e. not directly Gloranthan related) question.
>What do you think is the best way to purchase Hero Wars in order to
>maximize Issaries Inc's profits and growth opportunities?

>1. Purchasing direct is likely to provide the most profit to Issaries.

Short term gain. It helps companies like Issaries bottom line and profitability, so they like a small percentage of sales this way. But, it isn't a good way to increase market size. People without local stores (or crappy ones) usually order enough direct to help companies with their margin.

>2. Purchasing through a local retailer is going to show the local
>retailer that the game is selling, and may help spread the word and
>make more sales, thus providing more profit to Issaries.

Preferred. Let the retailer know you'll be buying. Let them know you'll be willing to run demos (they can get Demo kits from Issaries). Let them know You'll be running a game and players will want stuff too. Get them to put it on the shelf, and to order more that one to start with, so when you get yours the shelf isn't empty for a week or two until they reorder.

>3. Purchasing through Wizard's Attic is always a choice (good
>service, good selection of games that I can't find any place else),
>but may not be the best thing to do to help Issaries make money or to
>help spread the word about game expansions.

This is actually buying direct from Issaries (I only charge a small service fee). And I ship everything they do both direct and to distributors/retilers. I make my money on the t-shirts and other cool stuff I sell. The shipping for Issaries, Chaosium, etc. is pretty much break-even for me.

>Since I'm a Gloranthan junkie, I want to ensure that the main
>suppliers of this terribly addictive substance is going to be around
>to continue to supply the material that I need.

Frankly, worst case scenario is it fails in distribution due to retailer apathy, and becomes a small direct to consumer publisher with smaller print runs and higher prices, but maintains profitaability and continues to publish new stuff.

Cheers,

Eric Rowe
Wizard's Attic Publishing Services
www.wizards-attic.com


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