Retail Pricing for Gaming Products (what's the margin?) - Downloaded from the Wizards Community, all coding removed by Solauren

Retail Pricing for Gaming Products (what's the margin?)

Post/Author/DateTime Post
#1
mothdevil
Aug 01, 2008 14:26:51 I'm putting together a cost analysis/ROI for a potential game product I'd like to self-publish, and I'm trying to get a better handle on what the pricing schemes are for common products on the manufacturer - distributor - store - retail chain.

For example, does anyone have a ballpark idea of how much your typical FLGS is paying for a typical D&D book, Magic card set, or Mini set? Is it generally 50% of retail or is it less? Does it vary wildly depending on the product or manufacturer?

In my current job, I'm used to a 50 points margin, wherein the dealer typically charges the end user/consumer double what it cost him to buy a product from us.

I don't know if that same pattern is standard practice in other industries or not... The impression I'm getting is that companies like GW and WOTC are charging the FGLS substantially more than half retail. I'm trying to put together something that is generous to both the seller and buyer that won't also rob me blind. If I'm charging a reseller, say 65% or so of retail, is that generous or am I being stingy?
#2
mothdevil
Aug 04, 2008 8:18:32 Bump...

Anyone...? Anyone...?
#3
jwt
Aug 04, 2008 13:28:36
I'm putting together a cost analysis/ROI for a potential game product I'd like to self-publish, and I'm trying to get a better handle on what the pricing schemes are for common products on the manufacturer - distributor - store - retail chain.

For example, does anyone have a ballpark idea of how much your typical FLGS is paying for a typical D&D book, Magic card set, or Mini set? Is it generally 50% of retail or is it less? Does it vary wildly depending on the product or manufacturer?

In my current job, I'm used to a 50 points margin, wherein the dealer typically charges the end user/consumer double what it cost him to buy a product from us.

I don't know if that same pattern is standard practice in other industries or not... The impression I'm getting is that companies like GW and WOTC are charging the FGLS substantially more than half retail. I'm trying to put together something that is generous to both the seller and buyer that won't also rob me blind. If I'm charging a reseller, say 65% or so of retail, is that generous or am I being stingy?

Back when I had a go at it, the margin FROM THE DISTRIBUTER (In this case alliance) was about 50%. I got the impression that WOTC sells to Alliance at half that again.

My buddy who still dabbles in this tells ma that the margins are about the same, but Alliance kills him with shipping. They do give breaks for volume, but it is very hard for a FLGS to keep that volume high enough without buying too many copies of something that doesn't move.
#4
mothdevil
Aug 04, 2008 13:38:28
Back when I had a go at it, the margin FROM THE DISTRIBUTER (In this case alliance) was about 50%. I got the impression that WOTC sells to Alliance at half that again.

My buddy who still dabbles in this tells ma that the margins are about the same, but Alliance kills him with shipping. They do give breaks for volume, but it is very hard for a FLGS to keep that volume high enough without buying too many copies of something that doesn't move.

Thanks!

So am I correct in that in your example a $5 product (manufacturing cost) looks like this:

$5 (WOTC) to $7.50 (Alliance) to $11.25 (store) to $16.87 (retail)?

So, ultimately, a $5 product hits the street at $16.87?
#5
farmer42_dup
Aug 04, 2008 21:28:39
Thanks!

So am I correct in that in your example a $5 product (manufacturing cost) looks like this:

$5 (WOTC) to $7.50 (Alliance) to $11.25 (store) to $16.87 (retail)?

So, ultimately, a $5 product hits the street at $16.87?

Depends on what the up-front loss is, but on a successful product that's been on the market, yes. Usually, that $5 product starts at a cost of around 10 or so, while they're still making up for the cost of development, but within a couple of months, especially if all the writing was freelance, the initial investment should be paid off.
#6
mothdevil
Aug 05, 2008 8:24:24
Depends on what the up-front loss is, but on a successful product that's been on the market, yes. Usually, that $5 product starts at a cost of around 10 or so, while they're still making up for the cost of development, but within a couple of months, especially if all the writing was freelance, the initial investment should be paid off.

Thank you!

Post/Author/DateTime	Post
#1 mothdevil Aug 01, 2008 14:26:51	I'm putting together a cost analysis/ROI for a potential game product I'd like to self-publish, and I'm trying to get a better handle on what the pricing schemes are for common products on the manufacturer - distributor - store - retail chain. For example, does anyone have a ballpark idea of how much your typical FLGS is paying for a typical D&D book, Magic card set, or Mini set? Is it generally 50% of retail or is it less? Does it vary wildly depending on the product or manufacturer? In my current job, I'm used to a 50 points margin, wherein the dealer typically charges the end user/consumer double what it cost him to buy a product from us. I don't know if that same pattern is standard practice in other industries or not... The impression I'm getting is that companies like GW and WOTC are charging the FGLS substantially more than half retail. I'm trying to put together something that is generous to both the seller and buyer that won't also rob me blind. If I'm charging a reseller, say 65% or so of retail, is that generous or am I being stingy?
#2 mothdevil Aug 04, 2008 8:18:32	Bump... Anyone...? Anyone...?
#3 jwt Aug 04, 2008 13:28:36	I'm putting together a cost analysis/ROI for a potential game product I'd like to self-publish, and I'm trying to get a better handle on what the pricing schemes are for common products on the manufacturer - distributor - store - retail chain. For example, does anyone have a ballpark idea of how much your typical FLGS is paying for a typical D&D book, Magic card set, or Mini set? Is it generally 50% of retail or is it less? Does it vary wildly depending on the product or manufacturer? In my current job, I'm used to a 50 points margin, wherein the dealer typically charges the end user/consumer double what it cost him to buy a product from us. I don't know if that same pattern is standard practice in other industries or not... The impression I'm getting is that companies like GW and WOTC are charging the FGLS substantially more than half retail. I'm trying to put together something that is generous to both the seller and buyer that won't also rob me blind. If I'm charging a reseller, say 65% or so of retail, is that generous or am I being stingy? Back when I had a go at it, the margin FROM THE DISTRIBUTER (In this case alliance) was about 50%. I got the impression that WOTC sells to Alliance at half that again. My buddy who still dabbles in this tells ma that the margins are about the same, but Alliance kills him with shipping. They do give breaks for volume, but it is very hard for a FLGS to keep that volume high enough without buying too many copies of something that doesn't move.
#4 mothdevil Aug 04, 2008 13:38:28	Back when I had a go at it, the margin FROM THE DISTRIBUTER (In this case alliance) was about 50%. I got the impression that WOTC sells to Alliance at half that again. My buddy who still dabbles in this tells ma that the margins are about the same, but Alliance kills him with shipping. They do give breaks for volume, but it is very hard for a FLGS to keep that volume high enough without buying too many copies of something that doesn't move. Thanks! So am I correct in that in your example a $5 product (manufacturing cost) looks like this: $5 (WOTC) to $7.50 (Alliance) to $11.25 (store) to $16.87 (retail)? So, ultimately, a $5 product hits the street at $16.87?
#5 farmer42_dup Aug 04, 2008 21:28:39	Thanks! So am I correct in that in your example a $5 product (manufacturing cost) looks like this: $5 (WOTC) to $7.50 (Alliance) to $11.25 (store) to $16.87 (retail)? So, ultimately, a $5 product hits the street at $16.87? Depends on what the up-front loss is, but on a successful product that's been on the market, yes. Usually, that $5 product starts at a cost of around 10 or so, while they're still making up for the cost of development, but within a couple of months, especially if all the writing was freelance, the initial investment should be paid off.
#6 mothdevil Aug 05, 2008 8:24:24	Depends on what the up-front loss is, but on a successful product that's been on the market, yes. Usually, that $5 product starts at a cost of around 10 or so, while they're still making up for the cost of development, but within a couple of months, especially if all the writing was freelance, the initial investment should be paid off. Thank you!