John Coviello of Little Shop of Magic in Las Vegas, Nevada read Marcus King's latest column regarding the changing nature of relationships within the hobby game industry (see "View from the Game Store--Industry Relationships") and had this to say:
I agree with Mr. King. Things have changed and if history is any indicator things will continue to change.
I also believe, however, that this industry (and indeed our customer base) has yet to outlive the usefulness of brick and mortar stores. As a matter of fact, I'd be willing to wager that our business model has decades left in its lifespan. Don't get me wrong, much of his analysis of the changing relationship between the various tiers of our industry is spot on but, in my opinion, change is not a herald of doom but simply a necessary aspect of business.
The Internet has changed things and not just for the gaming industry. Customers now have an easier time than ever to find the 'cheapest possible deal' or the latest scoop on their favorite game. We are fortunate, however, to operate in an industry that offers more that just the acquisition of a product. We have the opportunity to deliver an experience.
Taking as an example the recent ordeal of the beleaguered video rental chains. Two companies have found a way to deliver the same product and experience as traditional rental outlets in a faster, cheaper and a more convenient way.
-- Netflix offers videos by mail and/or delivered instantly to your media player via the Internet.
-- Redbox kiosk are plentiful, cheaper and open 24/7.
In both of these cases the user experience is unchanged. He/she goes home and watches a movie. Both of those options, however, offer that same experience for less. The customer weighs in the offers, sees no difference in product or experience and picks one of the two over the traditional rental channel. I myself am guilty of being a Netflix customer since their first year of business. Last year I even cut out my cable television because of their service.
Now, on the other hand, the Internet discounters in our field can only offer a cheaper price. They have no way of competing with the experience that you can provide as a full service gaming store.
-- Yes, your Pokemon customer knows more about Pokemon than you do but does he know more about selling Pokemon than you do? Can he explain what you need to buy to get your kid playing without confusing you with fan-boy babble?
-- Maybe manufacturer X is making my life difficult by offering limited edition direct only items, selling at conventions or pre-selling items on their website before release date. But why am I spending so much time promoting his brands when I could concentrate on manufacturer Y who does not engage in such practices?
-- Sure that box of Magic goes for less on the Internet, but can I play a booster draft with 80 other players with the box I just got in the mail?
-- Indeed that customer wants you to sell the games for cheaper, but did we do a good enough job of providing him with added value for purchasing it at MSRP in our store?
Ultimately, I believe that things rest squarely on our shoulders in regards to the future of our businesses. Whether we survive or fade will depend on how well we can re-invent ourselves as things change and how useful we remain to our distributors, manufacturers and end users. Building mutually beneficial relationships is my business. How I achieve them and how strong I make those relationships is the true challenge I tackle every day.
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.
'Things Will Continue to Change'
Posted by ICv2 on March 22, 2010 @ 11:00 pm CT