Ahh.

OK. I know you've said you're losing money, but I don't see how (I apologize if I'm just to thick to get this).

How did you expend additional overhead ordering four more boxes?

I frequently use an online retailer that offers free shipping for orders over $125. So, additional shipping doesn't strike me as a potential.

Yes, you spent additional money buying 4 more boxes. I'm guessing that frequently that is bought on credit, which means that, between the deposit I put down and the bill coming due after I purchase and pay in full...

Rent doesn't cost more... there's no additional water or electricity required to sell me those four boxes.

The employee that rings me up was going to be working anyway...

I'm not antagonizing, seriously - it's just something that I don't understand? How are you losing money on me by selling me 4 boxes at $60 per? Help me understand the plight of the LGS - and maybe I will be willing to spend an additional $25/box.

-S

Oh - and consider also that I'm not Joe Schmo off the street: I'm a guy that's in your store at least twice a month, who always buys something (at MSRP!).

There is such a thing as goodwill. And loyalty is a two way street. So jamming MSRP down a loyal customer's throat isn't necessarily the best approach (again, IMHO - but I work for a company that absolutely relies on our 70% repeat business, so maybe my attitude in that regard is biased).

-S

Simple. Every single product in the store has a % added to the cost you pay from the distributor. This % is the total amount of money it cost you to run the business for the time period you are counting. The entire raw $$$ it costs you to pay rent, utilities, employees, taxes, etc, is divided evenly between every piece of product in the store. Overhead for a standard retail store usually comes to about 20%. That is to say, you must add around 20% to the cost of every product in your store. Any money you make above this total cost is profit. Any product you sell below this cost you are losing money on.

The only exception to this is the following: Any product that sits on your shelf for too long is tied up money, so selling below total cost is reasonable, because it allows you to invest those tied up funds into something capable of generating profit.

Last but not least, profit is also deceptive. Profit goes to one of three places:

1) The pocket of the owner of the store.
2) To stock new product lines in the store while maintaining your previous product lines' inventory.
3) To expand the size of the store, by adding to it's square footage of floor space by expanding, buying a new building, or renting a larger spot.

That is why it is not worth stocking a product that people expect to pay below cost for. It's much better for the long-term viability of the store to simply not carry such a product.

The big thing about overhead is it is global. You ALWAYS apply it to EVERY product in your store at ALL TIMES. Always. Always, always, always.

Oh, and one more thing. Putting things on credit is asking for trouble. Big trouble. Never invest money you don't have, and there is no such thing as a "sure thing" return on your investment. Ordering 4 more boxes costs more shipping generally, but not always, and the cost % added due to overhead is STILL applied to those 4 additional boxes. You cannot neglect applying overhead. It is a strict neccessity to never forget it. In big part, this is because of the other customers in the store. If one person sees a certain customer getting a much better discount, that customer will demand it, which starts this terrible cycle. As a retailer, we simply must hold our ground, stand firm, and not fall into those pitfalls and traps. You've already stated you are getting a 20% discount. That's a damned good discount on any retail product. If you are a regular, we might offer you a slightly higher discount, possibly. But it is risky to do so for the reason stated above.

i understand u all wanting a profit for ure stores ( duh it's a buisness) but i dont think u should compplain of online deals people get as its an open market and if i can get a better price online and have it delivered to me instead of going to a shop and paying maybe 20 + $ more i will of course go online .

As I said, that's fine and dandy. But if your local store either stops carrying the product you desire, stops running tournaments and other events for such product, or simply goes out of business, you now know why it happened. And knowing is half the battle! :grin:

Seriously, do a poll on this site alone. See just how many stores go out of business every year, or how many places don't have a store at all, and you must drive 50+ miles to find an organized game. One of the major contributing factors to those events occuring in the modern era is online prices.

that may be true but stores must find ways to attract more clientele and make it more appealing to buy there or face going out of buisness it's a natural occurence.but i admit u have a point we must all support our home store's so they can flourish and keep them in buisness.

I just don't understand how some customers see a standard 20% discount, something you usually only see during holiday sales at most retail stores across the country, as an insufficient discount. It is an extremely generous discount.

Retail ain't an easy business, folks, partly because of dealing with issues like this every day. Do you know how disheartening it is as a retailer to offer 20% off, and have a customer say you are ripping them off? When you know you are breaking even or making only a slight, tiny little profit? It most assuredly makes you reconsider stocking that product, that's for damned sure.

And if you tried to pull the same crap in another retail store... Go into Pier One and ask for 20% off on whatever you buy because "you're a regular". Or Barnes & Nobles. Or Publix. Or really, any other retail store that isn't a small business. The employees may very well laugh right in your face before asking you to leave. If you tell them, " But I can get it online for ___!" I guarantee you, they will say, "So? Go buy it online then!" But small businesses, who offer alot more friendly service, will know alot more about the product they are selling (generally), and are much more willing to cut a deal, are EXPECTED to give all sorts of deep discounts all the time to every customer who bothers to ask. It's pretty damned frustrating, and pretty damned ridiculous, if you ask me.

all im saying is who ever gives me the cheapest price will get my buisness..


btw lets stop jacking this thread if u wish make a seperate one.this one is about the jla release date.

SAME!!:grin:

Well... to get back on topic... JLA is out. We got our shipment last Friday.

I do agree w/ the retail vs. online sentiment. Here in SoCal it's even harder because there is a weekly collectibles "show" on Wed/Sat where prices are even cheaper than online stores.

u got to admit that place does have cheap prices im there all the time for vs and yugi.

My local store gives me boxes for $60 a pop, but I am the exception to the rule. and He is a brick and Mortor Store.