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What is the typical discount from retail list price that a retailer store gets?

Started by blakkie, March 15, 2007, 10:10:03 AM

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blakkie

When a retail store buys an RPG directly from a publisher or from their fulfilling house or distributor what is the typical amount knocked off the list retail price?
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Koltar

I am not allowed to tell you the specifics for  "Oor" store - because of papers I signed when I was hired.

  I can tell you , that in general it varies between distributors.  For example, BLACKHAWK sends out an almost weekly sheet of stuff that they are doing massive deep discounts on. Last week it was a whole bunch of older AD&D titles - I recognized them by name.  We're talking practically 90% off the original price.

 Other situations are similiar to the WizKids recent headache. They just switched to an exclusive arrangement with a distributor  that has basically screwed many game stores over. As a result of that our upper management decided to slash prices on almost ALL WizKids products until we sell out of most of it.

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blakkie

In your opinion could most stores turn profit on a 40% markdown (so a 67% margin)? Lets assume no payment terms and free shipping (which is a biggy, I know).
"Because honestly? I have no idea what you do. None." - Pierce Inverarity

joewolz

Assume 50% of cover for most products.  That's a good ballpark.  Some things are less than that, some more.  Depends on the distibutor.  

IIRC Indie Press revolution sells to retailers at 40% off cover.
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blakkie

Quote from: joewolzIIRC Indie Press revolution sells to retailers at 40% off cover.
Do they get many stores balking at that?
"Because honestly? I have no idea what you do. None." - Pierce Inverarity

Mcrow

I think most retailers buy @ a 35-50% discount of the cover price from distrib. So on a typical $40 RPG they would make $14-$20 not including overhead.

Mcrow

Quote from: blakkieDo they get many stores balking at that?

nope, some small distribs give as low as 35%.

joewolz

Blakkie, no, store don't balk at that, as Mike said.

I also have a feeling (not owning a store) that IPR's games, when bought by retailers, are thought to be quick sellers.  If you have a group of people who buy those games, they will help sell them.
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HinterWelt

I owned two stores for about 6 years in the 90s. I still have close ties with distributors and retailers active in the industry. This is my take.

Generally, from the major distributors, a retailer will get titles for 40-50% discount. 50% is rare. It is much more likely you will get 40-45%. The exceptions are GWS and WOTC which short their discount. Also, as has been pointed out, some indie and smaller distributors will cut discounts and such. Some retailers (I sell to about 60 retailers directly) refuse to deal with indies and small distributors just for this.

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