But there isn't lower volume. If this set is selling FASTER than any set before, then the print runs are the same, there is just more demand. There isn't a shortage compared to previous sets, just the implied shortage because of demand. Distributors will sell through the same amount of product either way.
If sold at the same price as previous sets, stores will make the same money, they will just sell out faster and have to wait for additional print runs.
Raising prices doesn't do any customers a service, only makes more money for those who have raised said prices. Sell through the stock you have and wait for the next wave and then make more. If demand keeps up, and price remains the same everyone will make more money, it'll just be spread out.
Unfortunately consumers must not be smart enough to realize this and wait.
I guess entitlement has it's price. lol
It is a lower volume on account of distributors allocating product to vendors. Since RTR is a limited product due to wizards 3-run printing policy, there is less product now than usual.
Either the shops or the distributors. Since distributors are either raising prices or allocating, shops must decide between buying more expensive boxes and charging more than usual, buying fewer boxes and having to charge more to make up for lower volume, or some combination of the two.
Upset was the wrong word to use. Thanks for cashing in on it.
Here we go: I just like to play the game with friends and the fact prices are going up 20% when they don't have to, is distasteful and no way to treat your customer base.
You may find it distasteful, but it is just not the fault of the vendors.
You love giving a basic lessons in business don't you? I understand Wizards is here to make money, thats not what this is about. Also, I dont disagree that there are R&D costs involved, etc. However all of that is done by the time the product goes to print. Did you read the part of my first post where I talk about the communication between wizards and the distributors?
I just like to play the game with friends and the fact prices are going up 20% when they dont have to, upsets me as a consumer.
I understand you're upset. With this jump in costs for sealed product it is difficult on both the players and many of the vendors. However, what must be kept in mind is that this is no one's fault - its just supply and demand, and WOTC controls all of the supply. Wizards can change their printing policies to introduce more RTR into the system to drive down pack cost, but that is at the risk of harming their brand by devaluing the cards.
If your distributor is raising their price on an in-print item like RTR boosters then its time to get a new distributor.
Distributors should not be price gouging. Wizards is not charging distributors any more for their allocations because RTR is popular. I saw a distributor try this back when M10 was legitimately in short supply and I ceased all of my business with them. The role of the distributor is to get product from the manufacturer to the retailer, not to act as some kind of commodities broker and "play the market".
There are plenty of distributors who will not resort to gouging on in-print items. Not to mention the weekly allocation of product you can get directly from WOTC each week whose price will not change due to market shifts.
As I said before, most of our distributors are not raising prices, they're just putting limits on how many boxes may be bought a week. Wizards is not charging more, but the 3rd run of RTR is already being distributed, and the demand is not going down. And while we can order direct from wizards, they sell at higher prices direct to vendors, so there is little difference.
It's just two different economic philosophies. Neither is wrong, and they both work out about the same.
I'm a licensed stock broker, this is about the dumbest thing I have ever read. PEOPLE GET BASIC ECONOMY, what we are talking about is the controlling of markets which is rampant in the MTG world. SCG (and others) would have been shut down by the SEC 1000 times by now if this market were to be regulated to be 'fair'. Its blows my mind the amount of market manipulation that goes on with MTG.
Greed is the bottom line, because don't forget, we are talking about the printing of cardboard here.
While this argument is fair to a degree in regards to singles, it does not apply to booster boxes in the same way. Again, every magic retailer selling sealed magic product is at the mercy of the distributor prices, who are in turn at the mercy of WOTC printing policies. The market in booster boxes is regulated by the total number of boxes available versus the demand for those boxes. I speak from experience when I say that there is not enough of this product to meet demand.
In regards to singles, that market is very, very difficult to manipulate. With the advent of tcg player, competition is stiffer than ever. Most attempts to truly manipulate the market on any kind of long term scale on any specific card is simply impossible. There are too many of any one specific card distributed across too wide of an area to make that possible.
And to address the idea that it's "just cardboard," that idea is just not correct. Magic cards are an idea - hence MODO. In the same way that stocks are not just pieces of paper, magic is a game with rules and art that represents a certain amount of time and work. Wizards cannot sell the cards at their printing costs since they have to pay for rent, design, rules management, marketing, and many more things down the line. The same is true for the distributors and ultimately the vendors.
I hope this helps to clear up the misunderstandings of the MTG sealed finance market.
It's not the fault of the distributors. It's a self-regulating market. As long as there's a demand for the singles that outpaces the supply, the prices will go up. Box price is initiated by supply, but is maintained by demand. Which means that if demand goes down, so will box prices. Magic price is maintained by the most basic rules of economy, and this will not ever change.
I do agree with you however for larger locations that make their profit on other things why raise the bar when you are maintaining overall profitability by other means?
Because then we're losing money on a product that we're not required to carry. Running a business is a delicate balance between being fair and reasonable to your customer while also ensuring that you can eat the next day. We HAVE to make a profit. It isn't a greed thing; its ensuring that you can continue to provide the service. At the end of the day, we're bound to the amount of product that WOTC prints, the demand for that product, and the effect that has on the market.
There are only a limited number of authorized MTG wholesaler dealers available to us brick and mortar stores. Normally we can get nearly as many booster boxes as we'd like for around 40% off the retail price. However, RTR is the fastest opened set in Magic's history, and consequently has insanely high demand. This has several effects. The first is that the distributors sell off their booster boxes as soon as they come in. Distributors can handle this either by raising our prices to discourage stores from over-buying stock and hoarding it, or by limiting the number of booster boxes we can purchase. We're an established store who has ordered upwards of 100 boxes at a time and have good relationships with our distributors, and even still the primary distributors we work with offer either boxes at $100-115 each, or limited to 3 boxes a week at around 35% off. To include profit to account for overhead, this means we have to increase our prices to ensure that we don't run out of loose product for prizes and drafts. Keep in mind that the MSRP for a booster box is about $150. Gate Crash is expected to maintain or exceed demand, so the sites and stores are taking this into account.
To sum everything up, we're not price gouging, but rather adapting to changes due to a high demand market. I promise that if we're selling boxes at $120, we're not making any more of a profit.
It is a lower volume on account of distributors allocating product to vendors. Since RTR is a limited product due to wizards 3-run printing policy, there is less product now than usual.
Either the shops or the distributors. Since distributors are either raising prices or allocating, shops must decide between buying more expensive boxes and charging more than usual, buying fewer boxes and having to charge more to make up for lower volume, or some combination of the two.
You may find it distasteful, but it is just not the fault of the vendors.
I understand you're upset. With this jump in costs for sealed product it is difficult on both the players and many of the vendors. However, what must be kept in mind is that this is no one's fault - its just supply and demand, and WOTC controls all of the supply. Wizards can change their printing policies to introduce more RTR into the system to drive down pack cost, but that is at the risk of harming their brand by devaluing the cards.
As I said before, most of our distributors are not raising prices, they're just putting limits on how many boxes may be bought a week. Wizards is not charging more, but the 3rd run of RTR is already being distributed, and the demand is not going down. And while we can order direct from wizards, they sell at higher prices direct to vendors, so there is little difference.
It's just two different economic philosophies. Neither is wrong, and they both work out about the same.
While this argument is fair to a degree in regards to singles, it does not apply to booster boxes in the same way. Again, every magic retailer selling sealed magic product is at the mercy of the distributor prices, who are in turn at the mercy of WOTC printing policies. The market in booster boxes is regulated by the total number of boxes available versus the demand for those boxes. I speak from experience when I say that there is not enough of this product to meet demand.
In regards to singles, that market is very, very difficult to manipulate. With the advent of tcg player, competition is stiffer than ever. Most attempts to truly manipulate the market on any kind of long term scale on any specific card is simply impossible. There are too many of any one specific card distributed across too wide of an area to make that possible.
And to address the idea that it's "just cardboard," that idea is just not correct. Magic cards are an idea - hence MODO. In the same way that stocks are not just pieces of paper, magic is a game with rules and art that represents a certain amount of time and work. Wizards cannot sell the cards at their printing costs since they have to pay for rent, design, rules management, marketing, and many more things down the line. The same is true for the distributors and ultimately the vendors.
I hope this helps to clear up the misunderstandings of the MTG sealed finance market.
Because then we're losing money on a product that we're not required to carry. Running a business is a delicate balance between being fair and reasonable to your customer while also ensuring that you can eat the next day. We HAVE to make a profit. It isn't a greed thing; its ensuring that you can continue to provide the service. At the end of the day, we're bound to the amount of product that WOTC prints, the demand for that product, and the effect that has on the market.
There are only a limited number of authorized MTG wholesaler dealers available to us brick and mortar stores. Normally we can get nearly as many booster boxes as we'd like for around 40% off the retail price. However, RTR is the fastest opened set in Magic's history, and consequently has insanely high demand. This has several effects. The first is that the distributors sell off their booster boxes as soon as they come in. Distributors can handle this either by raising our prices to discourage stores from over-buying stock and hoarding it, or by limiting the number of booster boxes we can purchase. We're an established store who has ordered upwards of 100 boxes at a time and have good relationships with our distributors, and even still the primary distributors we work with offer either boxes at $100-115 each, or limited to 3 boxes a week at around 35% off. To include profit to account for overhead, this means we have to increase our prices to ensure that we don't run out of loose product for prizes and drafts. Keep in mind that the MSRP for a booster box is about $150. Gate Crash is expected to maintain or exceed demand, so the sites and stores are taking this into account.
To sum everything up, we're not price gouging, but rather adapting to changes due to a high demand market. I promise that if we're selling boxes at $120, we're not making any more of a profit.
http://brauerjosh.blogspot.com/2011/...d-in-book.html
He also has a twitter:
http://twitter.com/#!/brauerjosh
http://brauerjosh.blogspot.com/2011/08/writing-has-appeared-in-book.html
He also has a twitter:
http://twitter.com/#!/brauerjosh