Thursday, January 24, 2008
The Big Squeeze
Several game manufacturers lowered their discount this month, to cover their additional shipping costs. Paizo (including Slugfest) and Kenzer & Company both reduced their discount by 2%. That means retailers will make 4% less on their products, unless they mark them up over the retail price. I consider the manufacturers solution akin to burying their head in the sand. They increase their price to cover their additional costs without any consideration for what it will mean for the rest of the trade. As I see it, raising the prices of their product by 2% to cover my new costs will be the solution, which will likely reduce the demand somewhat for their stuff. It also means I'm less likely to carry their backlist stock in the store.