Rolling for Initiative is a weekly column by Scott Thorne, PhD, owner of Castle Perilous Games & Books in Carbondale, Illinois and instructor in marketing at Southeast Missouri State University.  This week, Thorne looks at the Amazon price check app and its "attack" on stores' business model.

If you missed it this week, Amazon, as a Christmas present to brick and mortar retailers, announced it would give up to $5 in credit on any item if a customer would go into a store, scan the item using the Amazon Price Check app, then purchase the item through Amazon.  The customer saves 5% of the cost of the item, up to $5, Amazon gets millions of people out there price checking for the company, and the local retailer suffers yet another attack upon their business model.  Granted, Amazon's promotion targets big box retailers, since both compete by selling a comparatively small selection of items at the lowest perceived possible price, more than us.  

The product categories we sell make us essentially an afterthought to Amazon.  Looking at the current list of top 100 toys and games sold on Amazon, only four items we sell in the store show up (Bananagrams, Ticket to Ride, Settlers of Catan and Apples to Apples), though if you sell Melissa and Doug items, you are in a world of hurt as it looks like half the items listed come from the Melissa and Doug line.  Apparently, some of the large chain retailers are actually undercutting Amazon on items such as DVDs and books and this is Amazon's way of fighting back.

Still the problem comes from a violation of an implicit agreement between customer and brick and mortar store:  the store still will offer a selection of items, available for immediate purchase and possession, and answer or
attempt to answer questions the customer might have about the items under consideration.  The customer, in return, will give reasonable consideration to the store's offer and may or may not choose to purchase said item, but will not make a deal with another store while standing right in front of you.  Essentially, that's what Amazon is asking their customers to do: find an item in your store, get all the info they can from you, then deal with
the salesperson they brought in with them.  As Gary Ray, owner of Black Diamond Games, put it on his "Quest for Fun" blog, there is an implicit agreement between customer and salesperson:

Here's something I learned when I was younger.  When you enter a business and engage a sales person, you have entered into a social contract where it is expected that both of you are acting in good faith.  The sales person honestly and factually attempts to assist you, while you have intention to actually buy.  It's alright if you're "shopping around," or not ready to buy, but the intent should be that the sales person has a chance at some time in the future.

Now, thanks to Amazon, we have a violation of Ray's social contract.  Before this, when a customer came into the store and scanned a UPC code, sure they could be checking the price, but they could also be looking for more info about the game from the manufacturer or checking out a review (this is a major reason we don't use QRC codes extensively in the shop.  I have no desire to train our customers to look for more information on their cell phones.  If they want to know more about a game, I want them coming to the staff).  Now, if I spend time with them explaining the details of a game, then they check the UPC code and don't buy, I have to wonder if I just spent the last ten minutes working as an unpaid salesman for Amazon.  Almost makes me want to put in a cell phone jammer (Don't.  They are illegal in the U.S. with anyone caught manufacturing, selling, owning, or using one subject to an $11,000 fine and up to a year in jail.  No one has ever yet been punished for using one, primarily because, according to the FCC, "no one has complained").

The opinions expressed in this column are solely those of the writer, and do not necessarily reflect the views of the editorial staff of ICv2.com.