Sharpening the Sword is a regular column by retailer John Riley of Grasshopper's Comics, a 1300 square foot comic and game store in
I'm not going to make many friends today. I can feel it. But having had time to think over the WizKids exclusive announcement and talk with many people involved, I've decided that I support the WizKids deal and think it could have some very positive effects for retailers.
Like everyone, I was surprised late last week by WizKids' announcement that it was going exclusive with Diamond/Alliance. Before I say anything, let me tell you that like any other retailer I generally don't like exclusivity. I like having a choice. Also, although we have an account with
We have some very obvious issues in this industry, and at this point I think it's better for WizKids to at least attempt to make a difference than to do nothing at all. This deal has the potential to realize very strong benefits for those retailers who choose to continue to do business with them.
WizKids has shown itself to be proactive in retailer programs with their ClixBrick and returnability programs. While both of those programs weren't perfect upon launch, WizKids has continued to adapt to try to make these programs operate as well as possible. Logistically having one distribution avenue will definitely provide them with opportunities for retailer programs that would have been nightmares to run with multiple distributors (as I suspect the returnable HorrorClix launch was). The fact that WizKids has at least attempted very retailer-friendly promotions in the past gives me cautious optimism that they will be able to deliver on this potential.
Personally, I believe that when many retailers not only refused to participate in the returnable HorrorClix launch (for reasons which I still do not understand) but criticized the program, WizKids made the decision that it is better off establishing a system in which it can do as much as possible for the retailers that are actively looking to work with it, rather than continue to attempt to develop a system to make all retailers happy. If you can't satisfy a retailer with a fully returnable product launch including a free $100 figure, what can you possibly do to satisfy them?
This is a classic case of the 80/20 rule. In an article last year I stated that with limited resources available, I believed that manufacturers would be much better off directing those resources toward the 20% of stores that work hard at promoting their product and generate the bulk of the company's sales. This is not an exclusionary policy. Everyone has the option of joining this group, although it is clear already that some retailers will cease carrying the line. As WizKids announces its plans, stores will have the option of participating or not, just like they are free to carry any product line.
The dark shadow in this issue is obviously the specter of 'monopolistic distribution' as we experienced in the comic world a decade ago. I still
The difference between the comic and gaming ends of our industry comes down to this: comics are cheap, perishable and constantly changing, and games are perpetual and expensive. There's a reason comic customers come in the shop every week to leaf through the new books rather than buy a subscription from some discount source. Creative teams change almost monthly. Crossovers spur new purchases. Nobody wants to miss anything. But since game product can often be in the hundred dollar range, and something that lasts years, customers are much more sensitive to price and we face more pressure in this end. When was the last time anyone sold a box of Magic: The Gathering at full price in their store?
The responsibility of promoting games falls squarely on the brick and mortar retailer, yet market forces direct large sales away from our stores. The dynamics of the gaming model need to be shaken up, and I believe that at least this is an attempt. Whether it will prove to be successful or not, only time will tell. But I for one sure won't miss seeing my local distributor delivering its extra Clix product to the flea market so it can be dumped there and online!
Since I wrote the above, WK has announced its first two promotions, the Coming of Galactus Tournament and the in-store sales of previously exclusive figures. Obviously, the tournaments will be tied to a purchase of product, since they are sealed format tournaments, which will offset the cost of providing the Galactus figures. And if I'm reading this correctly, only retailers who run the events and can report on the completed event will receive the big prizes at the end. On the surface this seems like something that would certainly benefit retailers while putting off wholesalers looking simply to flip the product and sell the Galactus. Will this work perfectly? I doubt it. But then it looks like a good start.
I wish there were a way in which these programs could have been put into place without an exclusive arrangement. But as more and more of our customers go to make their big purchases online there is an ever increasing need to provide retailers with an edge. I'm sure that other manufacturers will be watching these programs closely over the next year, and I hope that they too attempt to adopt some type of program to protect their own products without having to resort to any type of exclusive relationship.
Our market and the larger consumer market is changing fast. In this case, the cost of doing nothing may be the highest of all.
