WizKids Raises Wholesale Costs, Retailers Boggle
Major gaming distributors Diamond and Alliance recently announced that WizKids will be lowering the discount they offer retailers across the board - all WizKids products will cost more for retailers to get, starting April 1st. They are not, however, raising their MSRP accordingly; rather than let you think they're taking money out of your pocket, they're letting your local store owner think so instead. Now, retailers are free to raise the price they charge for Mage Knight boosters... unless their nearby competitor chooses not to. See the problem?
This all comes at a time when retailers are increasingly urging publishers to set a retail price that lets everyone involved make money, while discounts to retailers stay at around 50%. That is, if Harry Potter cards cost WotC more to make, per booster, than Magic cards do (due to the Potter licensing fees), then Harry Potter boosters should cost the consumer proportionately more money apiece. Dealing with these problems by lowering retailer discounts is being called "taking money out of the industry," while raising prices to consumers would mean bringing more money in. In theory. How high could Mage Knight prices go before consumers revolted? I already hear grumbles about getting only eleven cards in a $3.29 CCG booster...