A brief history and background on why I am writing this: Wizards of the Coast, regarded by many as the publisher who has the most demand for .pdf products, pulled their products from their two main .pdf sellers in April 2009. Some publishers were outraged. Some attempted to step in and give special incentives or pricing on their own .pdf products. Retailers, being retailers, had a variety of reaction – including my own which was to ask those publishers – whose products I carry – if they would also give specials and discounts to me, so I could participate as well.

This got me called a variety of things – not all of which were nice. Which is okay by me, I am a variety of things, not all of which ARE nice.

For a number of reasons publishers and retailers view pdf’s far differently. A brick and mortar retailer is not ideally positioned to sell .pdf products, and personally I have had dozens, maybe hundreds, of instances of a customer telling me they wished to cancel a preorder because they got a pdf copy of a book – and no longer wanted the printed version. Due to this – what I would call hard evidence – I “know” that pdf versions of books cause a loss in sales of hard copy books. Publishers mostly deny this – claiming that either pdf customers wouldn’t have bought the hard copy anyway (too expensive), or that pdf purchases cause their to be MORE hardcopy sales, or that the two instances cause a wash-effect – and that those sales lost to pdf customers are offset by the sales of hardcopy books that happen because the customers first view the products in pdf format.

Now, publishers should know their business. But, some seem to feel that retailers don’t know their own businesses just as well. I can say that pdf sales, and piracy of books in pdf format, do indeed effect MY sales – because I talk to the customers who tell me so. “I don’t need the book, I have it on pdf” is hard evidence to me. It is my weekly customer telling me he does not need what I have to sell because he purchased or traded for it in another format. And, further on that track, since my sales are effected, so is my ordering. When I order a White Wolf book, and I do order everything they publish, I now get 4 copies for 2 stores, instead of 6 copies for the one store – as I did until about 2 years ago. The pdf availability of the books also cause me to treat those books like periodicals, instead of source material. I buy every White Wolf book that comes out for both of my stores – but instead of restocking it as it sells until it is no longer available – I only carry each new book for up to 180 days, after which I no longer restock as it sells. Now, that is not entirely because of .pdf availability – it is also because there are just too many damn rpg books to carry them all in constant stock. But, we do stock over 400 titles at my larger store. And, cannot restock things forever (which, of course, is a reason why consumers will enjoy the pdf’s they can acquire.

I would assume that publishers who are saying that pdf sales don’t affect the books sales have data too. Perhaps they can look back and see print runs and sell through rates – and can say “Property X game system has sold 4000 to 4500 copies in X months, fairly consistently for the past 8 years, or 20 releases, even while pdf sales have grown”. (I am assuming they have some data like this to look at – though I have no experience in looking at their data, just as they don’t have in dealing with my data or customers).

But, if my sales are effected, then so are my orders. I also can see where I sold what quantity of a VAMPIRE core book – by title – from 1998 forward. That is now 11 years of data I can look at. My sales are down. So are my orders – both initial orders and reorders.

Now, that doesn’t necessarily mean that they are down due to .pdf sales. But, that is what I am experiencing when customers tell me they don’t need the physical book, they have the eBook.

Distributors

I have the experience of being in the game-industry for 23 years, since 1986. I used to order from at least a dozen distributors who no longer exist. I can remember when distributors competed on price and selection – and used to stock everything the industry had to offer (or, perhaps, it just seemed to be that way to me, way back when). Now, distributors commonly run their inventory much leaner – with only a few weeks of inventory on hand, and are not attempting to run the “long tail” of back stock for older titles. I can recall the day when I could call my distributor and have a reasonably good chance to get 10 different RPG books that were a year old or older on my order. Now, usually, my inventory runs MUCH newer – I have to be ready to order most books by preorder to make sure I get any – and should be looking to order at least 90 days, if not 6 months of inventory when I do place an order on a new release.

Now, the distributors are only reacting to the marketplace as it exists in today’s retail reality. That is just good, smart business. And, with far fewer distributors in the hobby-game market than ever before (at least in my 23 years), it is not only smart on the part of those distributors – it is imperative. As a retailer, I have to also react to the current marketplace. That marketplace is influenced by many things: eBay, Amazon, other online discounters, distributor pricing, product availability and more. More, including those .pdfs and the customers who say they don’t need a book, they have the pdf.

Entitlements?

Retailers in general, in my experience, are asking for--and feel entitled to just one thing: Fair Treatment by those whose products they carry.

Allow me to explain what I think professionals in this gaming industry are entitled to.

Publishers. This should go without saying, but publishers are entitled to sell their works in any fashion they wish. Many seem to agree on this, until WotC pulled their products from pdf sales. Evidently, some feel “entitled” to piggy back their sales to WotC pdf products.

If a publisher wants to make a game, and sell it only at conventions – fine. If they publish a game and only sell it on their own website – okay! It is their work. Pdf only – sure! Their work, sell it any way (legally) they wish to do so! OBVIOUSLY – as a retailer I “want” to participate in the sale of good products. But, I don’t have a right to do so.

So, why all the fuss? Well, I think sometimes publishers may forget what the retailer does. We are not schmucks who are trying to feed off of others works. Let's look at this for a moment.

• A. Publisher creates an RPG book.
• A2: Publisher asks distributors for preorder numbers, and this goes forward to retailers.
• A3: Publisher contacts pdf sellers about the new work, also – doing whatever needs to be done there (I am ignorant of this process)
• B. Publisher prints books, and creates a .pdf for sale.
• C. Publisher sells the books into distribution.
• D. Publisher provides the pdf to pdf sales sites.
• E. Retailers buy copies of the book to sell.
• F. Consumers purchase the work in their preferred format, or get copies from friends.

Now, who in this equation has the most riding on the success of the work? The Publisher, of course! But, next in line is the retailer. Why? Because the publisher sold the books non-returnable. The distributor had preorder numbers from retailers to base their order on – and they have sold the books non-returnable (in most cases the books are sold non returnable TO the distributors too, of course – but, again, they had preorder numbers from their retailer accounts on which to base their orders). The retailer has speculated on the books or works – and is standing behind his counter, and behind the products he has chosen to offer – and has only the potential of a future sale. The pdf seller pays for the work AS IT SELLS, the retailer does so before it sells.

So, in my perspective – the retailer has more invested in the process. Yet, many scoff at the retailer. Consumers feel they are overpriced if they do not match internet discounters, even some writers and publishers have argued with me in favor of discounting to price match.

Retailers. I invest my money up front for the future hope that I will be able to sell the items I carry for a profit. It is not a hobby for me – it is my profession. I have sales records going back to the late 1980s for the stores and shops I have owned. I take at least as much pride in my occupation as do most writers or authors, dentists or plumbers. Make no mistake: I am not saying I am as gifted or skilled as a writer or artist. I create nothing – I sell the works of others more skilled, gifted or blessed than I. And, I both depend on, and admire those works, and the men and women who craft them.

But, also as a retailer – I feel I “am” entitled, perhaps, to one thing. Perhaps the dignity of the respect of those people and companies I support – through my choices and selections of which merchandise I stock, promote, and sell. I am not asking for special treatment, mind you. Just the respect that what I do supports what they do.

Certainty. Retailers are going to sell stuff. I have said many times, in the seminars I have presented at GTS, in the forums I write for – that I am a merchant by profession, and I am going to sell stuff. What stuff? Frankly, I don’t care. With two stores now I can say that Games Workshop Merchandise is my top category in one, and not in the top 10 in the other. Vinyl Records is my #2 category in my new store, and did so poorly in my other store we have nearly stopped carrying it at all. This year I sell RPGs. Next year I will, too. And the year after that. But, 10 years from now... . Maybe not! I dunno. But, if I am still drawing breath I will be owning a store and selling stuff. “Fun is what we sell” and that can come in a book, a box, a disc, cartridge, program or in another format we have yet to begin carrying.

I certainly hope I am carrying books by Margaret Weis, art by Larry Elmore, modules by Joseph Goodman, games by Zev (at Z-Man games) and Will Niebling – and much, much more. I hope that Jim Ward writes the next great RPG (my all time favorite RPG Author!), that Mark Miller re-releases Mega Traveller, and that I am carrying their products as well as works by Paizo, Green Ronin, White Wolf – and even my on again/off again friend Gareth Michael Skarka.

But, that is not really up to me – that is up to them.

All I get to choose is whether I am a retailer – and then I can select which products I carry from a host of those that are available to me.

In Closing

I want to remind people about something. This is the Games Industry. It’s work, but it should also be fun, no? Through my associations in this industry I have met and played with some childhood idols, like Jim Ward, Gary and Dave, Larry and others. Let's enjoy our hobbies, and try to respect one another in the industry – whether casual gamer, dedicated fanboy, retailer, artist or author, publisher or manufacturer – remember, we sell fun. And, we should HAVE fun doing so.

Otherwise, I Could be making more money driving a truck. ;)

Marcus King
Titan Games & Music
1504 West Michigan Ave
(just north of the WMU Football Stadium where Stadium Drive and West Mich intersect)
Kalamazoo, MI 49006

Titan Games & Music
637 Capital Ave SW
Battle Creek, MI 49015