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An idea for big companies to help local card shops?
MULLINS5
Posts: 4,517 ✭✭✭
I was thinking about the struggles of local card shops just now and the struggles owner's have to keep their doors open.
My dad has been a small business owner for about 30 years, dealing mainly in pets and pet supplies (insanely high margin items).
Roughly 10 years ago he turned part of the shop into an area to sell RC hobbies (he's an aviation nut) and the margins on most items are comparable to sports cards bought wholesale. There is no way the business can survive on hobbies alone mainly because of these low margins.
There are some hobby companies that market items that cannot be sold online and, in order to keep your wholesale account with them, must be sold in the store only.
Some dog food and pet supplies companies do this, too. Additionally, there are set prices and much, much better margins. Also, brings traffic into stores.
So, I was thinking, wouldn't this be a good idea for companies like, Topps, Panini, et cetera?
Make a specific product line each year that is sold directly to local card shops which cannot be sold online.
Of course, with the hobbies and pet supplies, there are times when wholesalers bend the rules....but it doesn't have an impact on the overall spirit of the program.
Just wonder what people think of something like this. Heck, maybe it's already been tried?
My dad has been a small business owner for about 30 years, dealing mainly in pets and pet supplies (insanely high margin items).
Roughly 10 years ago he turned part of the shop into an area to sell RC hobbies (he's an aviation nut) and the margins on most items are comparable to sports cards bought wholesale. There is no way the business can survive on hobbies alone mainly because of these low margins.
There are some hobby companies that market items that cannot be sold online and, in order to keep your wholesale account with them, must be sold in the store only.
Some dog food and pet supplies companies do this, too. Additionally, there are set prices and much, much better margins. Also, brings traffic into stores.
So, I was thinking, wouldn't this be a good idea for companies like, Topps, Panini, et cetera?
Make a specific product line each year that is sold directly to local card shops which cannot be sold online.
Of course, with the hobbies and pet supplies, there are times when wholesalers bend the rules....but it doesn't have an impact on the overall spirit of the program.
Just wonder what people think of something like this. Heck, maybe it's already been tried?
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Comments
<< <i>.......Just wonder what people think of something like this................. >>
I am not interested.
I still pop into local stores when around one but they never have what I'm looking for so it's generally a waste of time. I'm just not willing to pay twice as much just so an owner can maintain his storefront.
<< <i>Would it be fair if the retailers got items that online didn't? I personally think everybody should get an equal share. >>
Panini made 2 or 3 basketball products Target exclusives this year. So I don't see why they couldn't do this for the shops. And even do some online exclusives to even it out.
As other have said, it's simply much easier to buy online. I used to live near Burbank Sports Cards for about 10 years...within a 15 minute drive. I visited maybe 3 times in that 10 years. I currently live near one of the best card shops in Los Angeles in the South Bay Area...I've lived here 2 years... And still have not visited.
Online simply opened up a ton of new avenues to find cards and buy at lower prices. In all honesty, my collecting experience made huge strides at 2 points. First was when Wholesalers started selling to the public at Frank and Sons in the mid 90's. The second was when eBay selling got strong combined with the rise of TPG. I see no reason for LCS only product and certainly would not pay a premium for it.
The last LCS product I was interested in has been a fiasco. For Allen and Ginter last year, Topps issued an absurdly priced LCS exclusive binder that was $30 for about $10 worth of binder, ultra pro supplies, and 3 exclusive inserts to complete the mini insert sets. There were six total mini cards and were obtainable nowhere else. So anyone who wanted to finish sets was SOL short of forking over $60 for $20 worth of product. I got lucky and have managed to pick up 4 of the six for under $10 shipped, but not so much for everyone else.
As has been mentioned, the card companies implement similar restrictions all the time. Products exclusive to Target, Walmart, etc. For UD hockey, if you are a licensed retailer in Canada, you agree to not sell your products in the U.S. for one year after release. They could do the same for brick-and-mortar.
It probably wouldn't do very much, but it would get people talking about the issue and whether there should be a move back in that direction at the consumer or business level.
I don't agree with the sentiment that we shouldn't care. I also love shopping online, but we are seeing so much vertical consolidation (the Amazon-ification of everything) that you start to lose choice and purchasing power.
developed a scheme to help local buisnesses in my community.....
I spend money there
But of course, as others have mentioned, they have to have what im looking for. I would (and do) gladly pay a bit
more for the same item I could buy elsewhere online to support these buisnesses. But I dont believe we should
create an uneven playing field to force them to succeed.
My dad taught me sometimes life aint fair. You do whats right and dont worry about what John Q. Public does.
Dont expect somebody to hand you what you want because you think you deserve it. Buisness owners have to
adapt, or go the way of the dionasaur.
My $.02
<< <i>Why? So these B&M stores can overprice said item even more than the other stuff? I can see these stores putting s huge mark up and touting these items as "super limited edition, low Pop" ect.. >>
What do you consider overpriced? If direct cost on 2014 Elite Football is $90, what would you price it at?
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<< <i>Why? So these B&M stores can overprice said item even more than the other stuff? I can see these stores putting s huge mark up and touting these items as "super limited edition, low Pop" ect.. >>
What do you consider overpriced? If direct cost on 2014 Elite Football is $90, what would you price it at? >>
When was your price on this product $90?
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<< <i>Why? So these B&M stores can overprice said item even more than the other stuff? I can see these stores putting s huge mark up and touting these items as "super limited edition, low Pop" ect.. >>
What do you consider overpriced? If direct cost on 2014 Elite Football is $90, what would you price it at? >>
When was your price on this product $90? >>
Direct cost to dealers from panini is $90 per box
<< <i>I think Panini does a good job with the packs they give shops but they make them buy more product to get them from what I've read--but it would be nice to see something similar to help move out old product. >>
Correct. To get black Friday or fathers day packs, dealers have to buy the junk product from the current year. And on most of them they want dealers to pay original direct cost. So on elite football for example they want dealers to pay $90 a box to get 3 packs. But anyone can buy that product for $65 a box online. So the dealers are paying for the packs
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<< <i>Why? So these B&M stores can overprice said item even more than the other stuff? I can see these stores putting s huge mark up and touting these items as "super limited edition, low Pop" ect.. >>
What do you consider overpriced? If direct cost on 2014 Elite Football is $90, what would you price it at? >>
When was your price on this product $90? >>
Direct cost to dealers from panini is $90 per box >>
Are we talking about the same product?
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<< <i>Why? So these B&M stores can overprice said item even more than the other stuff? I can see these stores putting s huge mark up and touting these items as "super limited edition, low Pop" ect.. >>
What do you consider overpriced? If direct cost on 2014 Elite Football is $90, what would you price it at? >>
When was your price on this product $90? >>
Direct cost to dealers from panini is $90 per box >>
Are we talking about the same product? >>
Unfortunately, yes. Costs $90 direct every year, and sells $20-30 under cost after a month or so. And panini still puts out the same garbage year after year. Original price on blowout was $108. Blowout had them at $95 five days after release. No way a shop can compete with that
Most people are on point with this. The hobby as a whole has changed and unless you have adapted and created a solid online presence unless you are in a major city and then in a high traffic area to boot - you don't survive on wax and hobby box sales alone. Those that do likely do 70% or more in sales of TPG's compared to sports. Secondly, a hobby store only product would honestly suck and not be a strong enough product to move the needle. Not to belittle anyone, and I'm in this camp, but if you are a box a week/month customer you are not the target nor the bill payer for card companies. Mass breakers - those that pre-order hundreds of cases of every product - drive the industry now.
<< <i>I should add that the card companies/distributors do require a store front to be able to buy wax. So there is an incentive to maintain a storefront if you want to retail wax. >>
Not 100% factual. Gigantic sellers (such as Blowout) have neither a distributor or retail location in most instances. They purchase their product directly from Topps and Panini and neither company will turn down the product orders they put in.