ICv2 asked Loren Greenwood, President of Wizards of the Coast, his opinions about Internet retailing, discount pricing and the recent Leegin vs. PSKS Supreme Court decision:
Do you feel that online retailers that sell products at a substantial discount from retail are a positive force, negative, or have no effect on the over-all market for your products?
Our business is primarily based on the hobby channel. Everything we do, from how we package our products to our organized play offerings, is tailored to the brick-and-mortar environment. However, we of course recognize the growth of online retailers and that they're here to stay. We know, for example, that many of our brick-and-mortar retailers also do a significant portion of their business online.
If you could reduce the discounted sales of your products on the Internet, would you do so?
Our products are very high involvement and require a depth of support that typically is best served by the brick-and-mortar stores, specifically the hobby channel. Given this requirement, the services and support that come from the stores is essential to keep our business healthy.
Do you have any policies in place, either for your own sales to retailers or for sales from your distributors to retailers that treat online-only retailers differently from brick and mortar retailers?
We have various sales policies and practices tailored to our customers and their specific needs.
What is your reaction to the recent Supreme Court decision, Leegin vs. PSKS, will this change how you manage sales of your products to Internet retailers?
The implications for our business--and others--remains to be seen and we will continue to actively examine it in the context of our current distribution models and internal pricing policies.