FFG/Asmodee/Days of Wonder consolidation

By ziggy2000, in X-Wing

Maybe this is a silly question, but if they're going to open up selling more directly to retailers, what are the chances "I" can set myself up as a 'retailer" to buy direct?

Assuming Asmodee/FFG's account setup team is any good? Very low.

On the flip side if you happen to live in a place with extremely low population density they may have a more flexible view of what qualifies as a 'retail storefront'.

Maybe this is a silly question, but if they're going to open up selling more directly to retailers, what are the chances "I" can set myself up as a 'retailer" to buy direct?

It's actually really quite easy to do (again in the UK at least); hence the explosion of online sellers. Simply contact the distributors of the products you want to sell and they'll send you their terms and conditions. Meet those T&C's and hey presto, you're a retailer.

Cheers

Baaa

Maybe this is a silly question, but if they're going to open up selling more directly to retailers, what are the chances "I" can set myself up as a 'retailer" to buy direct?

Assuming Asmodee/FFG's account setup team is any good? Very low.

On the flip side if you happen to live in a place with extremely low population density they may have a more flexible view of what qualifies as a 'retail storefront'.

Now THAT, I truly doubt. In that case you have to play locally in your house, or make your own club, and as I said upthread, you are completely out of luck when it comes to organized play.

I'll consider paying MSRP when the CEO pays his employees a fair wage. Until then I'll take his approach and maximize my wallet.

While admirable and voting with your wallet is good I'm not positive that the impact is remotely felt by ffg. Not because you are a single person but because unless I'm mistaken they make their money off whatever middleman you pay in equal amounts regardless.

Quite possibly true, although can anyone confirm / deny that FFG gives MM/CSI volume discounts? If so they might see more revenue from selling to LGS.

In any event, the flip side is that the local community in the FLGS is organized by, and for, the players. The game store basically just provides space. They understand this and are looking to move to another location that can maximize their table space for players (of all games).

In this types of situations retailers can often get a price break by:

1. buying in volume

2. preordering

3. paying their invoices early (especially if they're offered extended terms)

Maybe this is a silly question, but if they're going to open up selling more directly to retailers, what are the chances "I" can set myself up as a 'retailer" to buy direct?

Assuming Asmodee/FFG's account setup team is any good? Very low.

On the flip side if you happen to live in a place with extremely low population density they may have a more flexible view of what qualifies as a 'retail storefront'.

Now THAT, I truly doubt. In that case you have to play locally in your house, or make your own club, and as I said upthread, you are completely out of luck when it comes to organized play.

I've personally opened accounts to businesses in Alaska that are based out of storage containers. Anything is possible with a low enough population density.

Well, I live on the East Coast, so no chance in that working for me. :D

Maybe this is a silly question, but if they're going to open up selling more directly to retailers, what are the chances "I" can set myself up as a 'retailer" to buy direct?

It's actually really quite easy to do (again in the UK at least); hence the explosion of online sellers. Simply contact the distributors of the products you want to sell and they'll send you their terms and conditions. Meet those T&C's and hey presto, you're a retailer.

Cheers

Baaa

If the gaming industry does manage to buckle down and restrict online sales this is where we'll see most online product coming in from: the UK.

A great example of this is Chain Reaction Cycles or Wiggle, both are online bicycle parts retailers that do incredible business in the US in spite of being separated by their customers by the Atlantic ocean. Laws there are decidedly less in favor of price control.

Well, I live on the East Coast, so no chance in that working for me. :D

A blessing and a curse.

Maybe this is a silly question, but if they're going to open up selling more directly to retailers, what are the chances "I" can set myself up as a 'retailer" to buy direct?

In theory, if you had a business license and were registered with the local Chamber of Commerce, you would count - however, you'd also need to actually, properly setup the mechanics of a business like a business bank account and some vendors/disti's might want to see things like credit ratings, etc.

If there's an easy way to do it, someone please chime in and we can all become retailers and TAKE THE POWER BACK. ;)

Just saw this.

Don't know where you are, but in the UK the process goes something along the lines of -

1. Do you want to be a Sole Trader or Ltd Company?

If you choose Sole Trader, register with HMRC as Self-Employed and get a business bank account and insurance. Set-up a website with ecommerce and hey presto.

If you choose limited company you can operate in two ways. One where the Ltd Company is set-up to protect your business name only; you then operate as a Sole Trader.

The other is where you actually pay yourself through the Ltd Company. This is slightly more convoluted as you have to register for PAYE and NI contributions. In both cases get a business bank account and set up a website with ecommerce and get business insurance.

Be aware, most banks will not allow you to accept Credit or Debit cards until you have been trading for a set period. You will therefore have to use a third party to accept these types of transaction.

In both of these cases, you will be responsible for tax returns. Something our American friends are (I believe) well acquainted with.

2. Contact the distributors of the products you want to sell. They will send you their terms and conditions, such as what they deem qualifies as a retailer, minimum order sizes and credit terms etc.

If you meet this criteria, then Bob's your mother's brother.

Very easy to set up a company in the UK. Making money with one?

Now that's an entirely different matter.

Cheers

Baaa

I'll consider paying MSRP when the CEO pays his employees a fair wage. Until then I'll take his approach and maximize my wallet.

The CEO of what? FFG? Or your local game store? Or Amazon? Because you're penalizing your FLGS by buying online. FFG makes the same money no matter who you buy from. Amazon makes no profit by selling FFG and depends on your subscription to Prime and their 15% fee to other retailers selling through their site for profits.

Instead of taking a snarky stand use your head.

I'll consider paying MSRP when the CEO pays his employees a fair wage. Until then I'll take his approach and maximize my wallet.

The CEO of what? FFG? Or your local game store? Or Amazon? Because you're penalizing your FLGS by buying online. FFG makes the same money no matter who you buy from. Amazon makes no profit by selling FFG and depends on your subscription to Prime and their 15% fee to other retailers selling through their site for profits.

Instead of taking a snarky stand use your head.

The CEO of FFG. If online retailers get volume discounts from FFG, as was suggested upthread by someone in the industry, then FFG is actually making more money when they sell though LGS. It may not be a trivial difference. Unfortunately FFG is not going to open up their balance sheets to us, so we have no way of knowing and quantifying this.

As I said upthread, the service that the LGS provides is not in selling the product. Anyone can stock the shelves or grab a ship from the back. The service they provide is in providing a play space. The smart ones are figuring out how to adapt their business model to survive in the new environment. This is a bigger issue than for just this one game or even across the entire FFG/Asmodee company lineup, and attempting to prevent this shift across the industry long-term will be like trying to hold back the tide with a broom. It is going to happen. The internet has fundamentally changed the business model in many industries.

I played the game through 6 waves, buying exclusively online, without even setting foot in a game store. Buying online hardly penalized the LGS that I never went to.

And it's not a snarky comment. While my wife and I aren't hipsters by any stretch, we pay extra to support things like fair trade coffee, etc. If you really want to financially support your FLGS, then buy online and hand them a wad of cash equal to the difference. They should be making more money that way. And if they don't make more money this way, then they're actually charging too much and arguably don't deserve your business anyway. The implication that I am not using my head is unbecoming of the generally upstanding discussion that the community has on these forums.

Edited by MajorJuggler

The CEO of FFG. If online retailers get volume discounts from FFG, as was suggested upthread by someone in the industry, then FFG is actually making more money when they sell though LGS. It may not be a trivial difference. Unfortunately FFG is not going to open up their balance sheets to us, so we have no way of knowing and quantifying this.

As I said upthread, the service that the LGS provides is not in selling the product. Anyone can stock the shelves or grab a ship from the back. The service they provide is in providing a play space. The smart ones are figuring out how to adapt their business model to survive in the new environment. This is a bigger issue than for just this one game or even across the entire FFG/Asmodee company lineup, and attempting to prevent this shift across the industry long-term will be like trying to hold back the tide with a broom. It is going to happen. The internet has fundamentally changed the business model in many industries.

I played the game through 6 waves, buying exclusively online, without even setting foot in a game store. Buying online hardly penalized the LGS that I never went to.

And it's not a snarky comment. While my wife and I aren't hipsters by any stretch, we pay extra to support things like fair trade coffee, etc. If you really want to financially support your FLGS, then buy online and hand them a wad of cash equal to the difference. They should be making more money that way. And if they don't make more money this way, then they're actually charging too much and arguably don't deserve your business anyway. The implication that I am not using my head is unbecoming of the generally upstanding discussion that the community has on these forums.

There's a lot of truth in that.

IF, and it's a big IF, because the information isn't all there yet, Asmodee are going down the support your FLGS, then presumably, they're implementing a GW style sliding scale of discount.

Now, I can't remember the exact particulars off the top of my head of exactly how that works, so the figures below are, figurative. But once upon a time it used to be something along the lines of -

1. Online store only - 10% off RRP

2. Bricks and mortar - 15% off RRP

3. Bricks and mortar with GW stock on show - 20% off RRP

4. Bricks and mortar with GW stock on show and demonstration games - 30% off RRP

5. Bricks and mortar with everything that a Warhammer shop offers without the Warhammer name (Painting, modelling classes, intro games etc.) - 40% off RRP

Since, in this instance, GW was the distributor, they could keep a tight rein on the costs.

Asmodee on the other hand use various distributors. The price they sell the product to them will more than probably be set at around (and this is a guess) 50%.

At this point, FFG/Asmodee have made their profit. Anything they sell at full RRP either online or at their HQ is the icing on the cake.

The distributor makes a profit on this before passing it to the FLGS, who get their stock at around 30-35% off RRP.

Which is why, at the moment, you can get X-Wing up to 30% off RRP from online retailers. They don't have the overheads of a FLGS, but they do have to sell in large numbers to make a profit.

Cheers

Baaa

Edited by Baaa

FFG DON'T BECOME A GW...

:angry:

In other words, by buying through the LGS you are primarily paying to keep more middlemen employed. It can be strongly argued that this is less efficient use of resources.

[edit] It would be very educational to see the exact breakdown of where the money goes when you pay MSRP at your LGS.

Edited by MajorJuggler

So here's an anecdote and rabid speculation about the timing of this press release from FFG.

I picked up my preorder of the T-70 and FO from my FLGS today, one of the two I frequent. Coincidentally, another guy from my league was picking up his ships at the same time. The owner remarked that we got lucky. When he went to put in the order for our ships, there was only one of each remaining from the distributor. The lucky part was that another store canceled their order, so he was able to get in another 2 of each ship.

I called another FLGS I frequent to verify the story, and sure enough, they didn't get their order in on time, and will not be getting stock of the T-70 or FO. It's already gone from the distributors they use.

Looking at MM and CSI, there's still 20+ available of each ship.

The wild speculation here is that the online retailers bought out the channel prior to most FLGSs even being aware that they could purchase the T-70 and FO. It also points to a smaller release on the FFGs side, most likely to hit TFA's premiere date.

If I were a GS, I would be upset that this happened. I know in my city of nearly 1 million who has the new expansions from local retailers and who purchased them online to bring to the store. It seems likely that until the next wave of T-70s and FOs arrives, MM, CSI, B&N, and a few other large retailers will have the corner on the market, completely shutting out the smaller brick and mortar stores.

Hopefully, we can infer that FFG has rushed this initial shipment of T-70s and FO's in order to make TFA's release date. Hopefully there will be another wave of inventory for FLGSs to purchase from.

I'll consider paying MSRP when the CEO pays his employees a fair wage. Until then I'll take his approach and maximize my wallet.

I'm all about labor getting a fair shake. I don't think your statement gets us closer to it.

The $5 that MM cuts off a $15 blister comes out of MM's cut, not FFG's.

What you are suggesting is akin to refusing TO tip a server in protest of servers only making $2.13/hr in wages. Your server will feel the harm, but management still gets paid in full.

Edited by Punning Pundit

Okay gang, I just called FFG and talked to one of the cool Star Brothers there. He explained the whole thing to me, and we had a great ten minute chat. The stores that sell online will be able to continue their business as always, and the customers, us, are barely going to notice any change. The Days Of Wonder item is the main focus of the new industry statement. This is not some GW Monster move coming to steal our online sellers, or make FFG products available only at FFG approved LGS.

Chill, the sky is just fine.

The fine fellow I spoke with realized the responses going negative'ish here after I chatted him up, and you can now expect a new statement regarding the changes coming in April.

Uh... not that I made that happen, just saying the man realized that there are some worried FFG Customers now that this is on the forum, and FFG is going to clear stuff ups.

All GOOD!

:D

Now go play with your wonderful FANTASY FLIGHT GAMES STAR WARS Space Ships and stuff!

:lol:

You should have also asked when they'd be putting up today's news post.

You should have also asked when they'd be putting up today's news post.

We got Imperial Veterans news... like ten minutes ago... wuz good too!

:lol:

Thanks Joe. Good news if true.

PR statements are always cryptic. We'll find out one way or the other for sure eventually.

Okay gang, I just called FFG and talked to one of the cool Star Brothers there. He explained the whole thing to me, and we had a great ten minute chat. The stores that sell online will be able to continue their business as always, and the customers, us, are barely going to notice any change. The Days Of Wonder item is the main focus of the new industry statement. This is not some GW Monster move coming to steal our online sellers, or make FFG products available only at FFG approved LGS.

Chill, the sky is just fine.

The fine fellow I spoke with realized the responses going negative'ish here after I chatted him up, and you can now expect a new statement regarding the changes coming in April.

Uh... not that I made that happen, just saying the man realized that there are some worried FFG Customers now that this is on the forum, and FFG is going to clear stuff ups.

All GOOD!

:D

Now go play with your wonderful FANTASY FLIGHT GAMES STAR WARS Space Ships and stuff!

:lol:

If you didn't look like a wookie, I'd kiss you.

Hell, I've kissed worse.

XX

Cheers

Baaa

Thanks Joe. Good news if true.

PR statements are always cryptic. We'll find out one way or the other for sure eventually.

Yeah our boys made it clear this article was an internal topic, not even meant for general consumption... why: it ain't a real concern for customers.

Things get posted that just don't even need to be seen, from time to time like this topic.

:)

Dat Internet...

:lol:

Okay gang, I just called FFG and talked to one of the cool Star Brothers there. He explained the whole thing to me, and we had a great ten minute chat. The stores that sell online will be able to continue their business as always, and the customers, us, are barely going to notice any change. The Days Of Wonder item is the main focus of the new industry statement. This is not some GW Monster move coming to steal our online sellers, or make FFG products available only at FFG approved LGS.

Chill, the sky is just fine.

The fine fellow I spoke with realized the responses going negative'ish here after I chatted him up, and you can now expect a new statement regarding the changes coming in April.

Uh... not that I made that happen, just saying the man realized that there are some worried FFG Customers now that this is on the forum, and FFG is going to clear stuff ups.

All GOOD!

:D

Now go play with your wonderful FANTASY FLIGHT GAMES STAR WARS Space Ships and stuff!

:lol:

If you didn't look like a wookie, I'd kiss you.

Hell, I've kissed worse.

XX

Cheers

Baaa

:lol::wub::D

REB%252520HAN%252520%252526%252520CHEWIE

You are 'da Boss, Joe

Okay gang, I just called FFG and talked to one of the cool Star Brothers there. He explained the whole thing to me, and we had a great ten minute chat. The stores that sell online will be able to continue their business as always, and the customers, us, are barely going to notice any change. The Days Of Wonder item is the main focus of the new industry statement. This is not some GW Monster move coming to steal our online sellers, or make FFG products available only at FFG approved LGS.

Chill, the sky is just fine.

The fine fellow I spoke with realized the responses going negative'ish here after I chatted him up, and you can now expect a new statement regarding the changes coming in April.

Uh... not that I made that happen, just saying the man realized that there are some worried FFG Customers now that this is on the forum, and FFG is going to clear stuff ups.

All GOOD!

:D

Now go play with your wonderful FANTASY FLIGHT GAMES STAR WARS Space Ships and stuff!

:lol:

my hero :)