Jump to content
Sign in to follow this  
HolySorcerer

Interview about new FFG policy. Yes, they're jacking up online prices.

Recommended Posts

So, a reason this new policy exists is to save FLGS from those horrible online stores like MM. Did you know that MM is also a FLGS? Did you know that they have product on display, places to play and hold monthly tournaments? The X-Wing tournaments always sell out early, by the way.

 

They do all the things that the supposed good FLGS do. So why are they bad again?

Share this post


Link to post
Share on other sites

Chucknuckle

"The only person losing out by the current state of affairs was FFG as the wild price fluctuations made it hard to negotiate deals with shops like Target, who offered none of the extra services of the game store, but charged game store prices. And the only person winning under the new state of affairs is FFG, who will get a bigger slice of the online sales pie, and have an easier time negotiating with large chain retailers now that their products have a more stable price."

I quoted you here because this alone is reason enough for ANA to take the steps they are taking. First and foremost it's about ANA stabilizing and setting standards for their sales strategy. They only want to pay their partners for the services they are receiving from them. Their former method of one size fits all wasn't working for them and they thought they needed to change that.

What I haven't understood is all this talk about propping up failing game stores and good game stores vs bad game stores. When I read the article I didn't get that sentiment at all. ANA is concerned with the future of their company not saving any individual game store that's fallen on hard times. Petersen said in the article that they believe the lgs creates growth in the gaming industry. ANA doesn't care if a game store sells coffee or not, what's important to them is that they sell and promote their games. They want product on the shelf and people buying and playing their games. They believe a LGS does a better job of introducing new players to their games than an online seller does. I'm going to link that map of X-wing store championships from the other thread again.

https://www.google.com/maps/d/viewer?mid=z1omBqcY0moQ.kWX7uMpCOSRQ

ANA wants growth. They want to see the number of pins on that map double or triple. They recognize that online sellers are not going to Increase the pins on that map the way they desire. ANA is going give greater incentives to those that help them achieve this goal, that is very self serving. Fortunately for the LGS, ANA has decided that they are important to their own future and taken action to secure that future.

On the topic of individual game stores. The good ones need to continue the practices that make them successful and important to ANA. The bad ones need to adapt and improve or fail. This is irregardless of any action ANA takes. The increased incentives are unlikely to save game shops that are failing because of their own ineptitude.

When analyzing this issue don't focus on the success of individual game stores, look at the big picture. This is a corporation taking the steps to insure their future. A future they believe is tied to the success of the LGS as an industry, not any given individual game shop. This is the conclusion they drew based on the data available to them. We don't have to agree with their conclusion, but lacking the ability to see the complete picture, I will defer to their superior knowledge of their company and industry and take their conclusions at face value until they are proven wrong.

In closing, remember the map. It's all about increasing the number of pins on the map. ANA is doing what they think will accomplish this goal, whether or not we agree is irrelevant, the decision has been made and the wheels set in motion.

Share this post


Link to post
Share on other sites

So, a reason this new policy exists is to save FLGS from those horrible online stores like MM. Did you know that MM is also a FLGS? Did you know that they have product on display, places to play and hold monthly tournaments? The X-Wing tournaments always sell out early, by the way.

 

They do all the things that the supposed good FLGS do. So why are they bad again?

Nothing's wrong with online stores that are also local gaming stores. If I understand the new policy correctly, these stores shouldn't see any change in their discounts, either.

There is a problem, though, in that stores like MM are only able to offer steeply discounted prices because of their sheer volume of sales. That sales volume is only possible because of their online sales, and it's not possible for every local game shop to match that volume in order to stay competitive. Every local game shop that can achieve the sales volume to sell at a steep discount online makes it a bit harder for local game shops everywhere else to compete.

It is in FFG/Asmodee's interest to have a large number of outlets selling close to MSRP than a small number of outlets selling at a significant discount. They want to move as many units as possible, and they believe that the loss in sales from online retailers will be more than offset by the increase in sales from brick-and-mortar outlets.

For the most part, people are upset about this because they will have to spend more on their plastic spaceship habit, or buy less. The only way to convince FFG/Asmodee that this is a bad policy is to stop buying their stuff, and encourage other people to stop as well. If they see a link between this policy and reduced sales, they will change it.

BTW, I buy most of my stuff online and I have never played X-wing in a game store. I have no problem with this policy because I want local game stores to succeed even if I never play there; I see this game as a luxury and if they start charging more than I'm willing to pay, I'll stop buying (just like I stopped buying GW stuff years ago).

Share this post


Link to post
Share on other sites

Chucknuckle

"The only person losing out by the current state of affairs was FFG as the wild price fluctuations made it hard to negotiate deals with shops like Target, who offered none of the extra services of the game store, but charged game store prices. And the only person winning under the new state of affairs is FFG, who will get a bigger slice of the online sales pie, and have an easier time negotiating with large chain retailers now that their products have a more stable price."

I quoted you here because this alone is reason enough for ANA to take the steps they are taking. First and foremost it's about ANA stabilizing and setting standards for their sales strategy. They only want to pay their partners for the services they are receiving from them. Their former method of one size fits all wasn't working for them and they thought they needed to change that.

What I haven't understood is all this talk about propping up failing game stores and good game stores vs bad game stores. When I read the article I didn't get that sentiment at all. ANA is concerned with the future of their company not saving any individual game store that's fallen on hard times. Petersen said in the article that they believe the lgs creates growth in the gaming industry. ANA doesn't care if a game store sells coffee or not, what's important to them is that they sell and promote their games. They want product on the shelf and people buying and playing their games. They believe a LGS does a better job of introducing new players to their games than an online seller does. I'm going to link that map of X-wing store championships from the other thread again.

https://www.google.com/maps/d/viewer?mid=z1omBqcY0moQ.kWX7uMpCOSRQ

ANA wants growth. They want to see the number of pins on that map double or triple. They recognize that online sellers are not going to Increase the pins on that map the way they desire. ANA is going give greater incentives to those that help them achieve this goal, that is very self serving. Fortunately for the LGS, ANA has decided that they are important to their own future and taken action to secure that future.

On the topic of individual game stores. The good ones need to continue the practices that make them successful and important to ANA. The bad ones need to adapt and improve or fail. This is irregardless of any action ANA takes. The increased incentives are unlikely to save game shops that are failing because of their own ineptitude.

When analyzing this issue don't focus on the success of individual game stores, look at the big picture. This is a corporation taking the steps to insure their future. A future they believe is tied to the success of the LGS as an industry, not any given individual game shop. This is the conclusion they drew based on the data available to them. We don't have to agree with their conclusion, but lacking the ability to see the complete picture, I will defer to their superior knowledge of their company and industry and take their conclusions at face value until they are proven wrong.

In closing, remember the map. It's all about increasing the number of pins on the map. ANA is doing what they think will accomplish this goal, whether or not we agree is irrelevant, the decision has been made and the wheels set in motion.

Never thought of the "Target" angle until you brought it up. Very interesting. How much does a huge store like Target play in the picture? Could there be expansion packs at Target soon?   

Share this post


Link to post
Share on other sites

Mr. Petersen does cover mass market retailers like Target, Amazon, etc. in the interview. They are going to be viewed as yet another channel. And their terms are not changing. Because ANA recognized the special value this retailers provide. That is, they reach a segment of consumers that is an order of magnitude greater than what specialty shops serve. So yeah, these retailers are probably the most important ones to ANA's over all strategy of growth.

Share this post


Link to post
Share on other sites

Mr. Petersen does cover mass market retailers like Target, Amazon, etc. in the interview. They are going to be viewed as yet another channel. And their terms are not changing. Because ANA recognized the special value this retailers provide. That is, they reach a segment of consumers that is an order of magnitude greater than what specialty shops serve. So yeah, these retailers are probably the most important ones to ANA's over all strategy of growth.

Not to mention it gets exposure of their games to a large segment of the population that doesn't know game stores exist or wouldn't go in one even if they knew.

Share this post


Link to post
Share on other sites

. They want to move as many units as possible, and they believe that the loss in sales from online retailers will be more than offset by the increase in sales from brick-and-mortar outlets.

I don't think this is correct. Most (if not all) companies target maximum profit, not maximum sales. It is very likely FFG is totally cool with less sales for more profit. They might even expect the increase in price to compensate for the reduced volume of the online sales resulting in an increased profit on the online channel alone.

Share this post


Link to post
Share on other sites

I honestly don't care about the prices changing. If I have to pay more for things, I'll just buy less of them. No big deal.

 

When I play at a FLGS, I buy from there. When I don't, I don't.

 

I just don't like this as being framed as "helping out the FLGS," because it doesn't really. They could EASILY have set terms to really move things in favor of the FLGS, but they didn't. You'll still be able to get things online for much cheaper than a FLGS.

 

What it does do is shut down people on eBay and the like, which I'm totally cool with.

 

Honestly price isn't a big deal to me, convenience is. As long as I can still buy product online (which seems to be the case), I'm totally cool.

Share this post


Link to post
Share on other sites

From the article it seems like they are expecting a temporary reduction in online sales. It looks like their goal is long term growth and health of the company at the expense of short term sales numbers.

In the case of their X-wing line I'm not sure this will hurt their sales much if at all. They've had a problem meeting demand from the beginning. While they are moving in the right direction on this issue, it's three years later and from my perspective, they still haven't solved it. I still see product shortages for X-wing. They may not be able to meet a reduced demand. I think they might feel the reduced demand more strongly with some of their other product lines.

Share this post


Link to post
Share on other sites

I had hot dogs for breakfast this morning. Well, technically it was this afternoon, since it wasn't until after 12.

So which is it? Breakfast or lunch? Or would it qualify as "second breakfast", given the late time, but not "Brunch" obviously, it was after 12pm.

Share this post


Link to post
Share on other sites

From the article it seems like they are expecting a temporary reduction in online sales. It looks like their goal is long term growth and health of the company at the expense of short term sales numbers.

In the case of their X-wing line I'm not sure this will hurt their sales much if at all. They've had a problem meeting demand from the beginning. While they are moving in the right direction on this issue, it's three years later and from my perspective, they still haven't solved it. I still see product shortages for X-wing. They may not be able to meet a reduced demand. I think they might feel the reduced demand more strongly with some of their other product lines.

 

Well this is necessary if they want to get international distribution. The 2 distributors cut earlier are fairly well known for giving deep discounts and not enforcing MSRP (which is possibly why they got cut). Currently it is cheaper for international customers to directly mass buy from the US. The 2 actions seem like they want better control over their distribution network and are willing to take a short term loss to achieve it.

Share this post


Link to post
Share on other sites

You've lived a sad and hollow life. You have my condolences... but I still expect you to subsidize my taco habit.

Apparently there are 3 Taco bars in Glasgow. I shall at my earliest possible convenience rectify my gastronomic failings.

 

But if I can't get them with a 40% online discount I shall be unhappy.

 

Cheers

Baaa

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

×
×
  • Create New...