As someone who has had to survive hard times in the game trade, followed by adopting strong policies during good times, and then seeing lean times once again, there are short term strategies that only make sense when I have no other option. I may blow out product because the bill is simply due and I don't have a cash cushion to sit on it long term, which is the better play. I know I need a cushion, so I see my actions are not optimal for the long term. I endeavor to improve.
The problem in the game trade is there are too many store owners who are grossly undercapitalized, forced to make short term decisions that hurt not only their prospects, but the long term prospects of the trade. They don't just use their online sales as an exhaust port for unsold product, they need to blow out product and collect revenue, any revenue, upon product release. Anything that generates cash for their 7 day terms or even COD terms, is a win if it gets them to their next FNM, which they also treat like a cash cow. These are the payday loan customers who are there every pay day, unable to feed their store and without other options. Most will never have the capital to do otherwise.
Of course I'm talking about Magic, the cash cow of the game trade, as there's nothing else quite as liquid as cases of Magic cards. For the vast majority of the country, it's unlikely the bar will be raised to limit the number of undercapitalized stores. Here in the SF Bay Area, obtaining a commercial lease in even a reasonable area, requires a multi year commitment and demonstrated capital. But in most of the country, there's plenty of commercial, month to month real estate that can be leased with a handshake. So anybody can start a game store with ease, usually with some folding tables and Magic boxes. If you want to raise the bar, you have to regulate livestock.
That cash cow needs to have its value protected. How that's done is none of my business, and it's not legal or helpful for me to suggest how. I just think it should be noted that her udders are sore and inflamed from being milked at an increasing rate of speed. Her legs are wobbly from not getting enough rest between milkings. Worst of all, the kids have lost a taste for her milk. There's no longer anticipation, no longer curiosity as they guzzle down glass after glass, while being handed another glass before the first is even finished. Treat the cow with some respect and most of these problems go away.
Post a Comment