Joe Krolik of Comics America in Winnipeg, Canada has been following the recent Talk Back discussions regarding Hastings Entertainment expanding into comic books (see "Hastings Entertainment Adds Comics") and had this to say:
From the publisher’s standpoint, the Hastings deal should certainly account for some extra sell-through. From Diamond's standpoint, the Hastings deal might not be too hot because according to terms chains with the same majority ownership can combine individual store orders for higher discounts. I'm sure that (a) Hastings will qualify for the top discount, and (b) even so, with this arrangement there is a returnability factor built in, as I can't see even 27 stores let alone 127 making orders and risking leftovers. That could quickly become a financial problem of large proportions if control of the orders isn't absolutely spot on which we all know is statistically if not realistically impossible no matter how accurate your systems are.
If such returnability exists, Diamond might entail a significant logistical problem because with so many stores, sure as shootin' someone will mess up a return deadline or something and Diamond will be in the unenviable position of having to choose to deny a return thus alienating Hastings, or allow it thus possibly eating the value if the publisher(s) involved don't get on board. The whole thing might be a lot of work for little or no benefit. Time will tell...
The opinions expressed in this article are solely those of the writer, and do not necessarily reflect the views of the editorial staff of ICv2.com.
'Time Will Tell...'
Posted by ICv2 on June 29, 2010 @ 11:00 pm CT
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