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View Full Version : Question for Store owners (am I causing more work for my FLGS for no profit?)



jason_sation
19-02-2014, 02:34
Hello,
Over the past year I've been ordering Direct Only products from my FLGS. I do this with the idea that I am putting money in their pocket when they order the items from GW and then sell them to me. However, I've read some threads where this is not actually the case, and that they don't make much profit from Direct Only? Is this true? Am I adding additional work to their load, for no additional money? I do buy products in the store as well, but I know they usually put my order in when they have enough other Direct Only orders to send in, and so I wait longer than I would if I just ordered online from an online retailer. I don't mind because I usually have other things I'm working on, but I have been waiting for quite some time for my latest order, and it got me thinking if it is even worth it for both the retailer and me. If I'm wrong and the retailers are making money from my orders (and it IS worth the effort) feel free to let me know as well. Thanks!

Shadey
19-02-2014, 06:51
Basically, are you asking if the LGS has to pay retail prices for the direct only stuff? Meaning unless she charges more than you would pay, they are making nothing?

I will try to get in to my local LGS on Thursday and ask the owner directly. We do have a few that frequent the forum though.

Herzlos
19-02-2014, 08:56
The only person who can answer that is the FLGS. Maybe they don't make any money on it, but are happy to do so for the additional trade they bring in.

skammadix
19-02-2014, 11:41
As long as they offer that service you have no reason to feel bad.

General Veers
19-02-2014, 12:49
My FLGS owner told me he gets very low profit margin, pays for shipping and has to pay for the order at the time he places it. That's unlike his trade account with GW where he gets a good (for gaming stuff) profit margin, shipping is free and he's invoiced. He told me he'd really prefer we not order GW direct only AT ALL from anywhere. However if we're going to buy it anyway he'd prefer to grumble about it while taking our orders.

erion
21-02-2014, 13:03
Any FLGS owner who is not willing to put forth a slight amount of extra effort to keep you from spending your hard-earned currency elsewhere on products he can obtain for you is doing it wrong. He can either provide the service and accept the reduced amount of profit (that is still profit) or he can let your order it elsewhere and run the risk of the rest of your gaming budget following suit. Complaining about it / asking customers not to do it is a great way to alienate people.

eriochrome
22-02-2014, 04:24
Given that places that offer 20% off on normal GW stuff general sell direct only stuff under different terms(pay at order not when shipped) at MSRP I would guess that they are getting it at 20% off list compared to the 40-50% off for large volume trade accounts. If you are ordering it through your store you should pay in cash as it will cut down on fees he has to pay thus improving his margin if you want to support the store if it has amenities that are worth supporting.

Herzlos
22-02-2014, 08:04
Stores from what I can recall can only buy the Direct only stuff at RRP - No discount.

SleeplessKnight
22-02-2014, 09:44
Profit margins for direct only stuff is much less than the stuff on the Trade list. However, it is much better for your FLGS if you get them to order it for you rather than going through an online source such as GW's website. At least they get something rather than nothing. Support your FLGS and continue buying from them.

williamsond
22-02-2014, 22:21
I know the margin is much less on direct only stuff for sure but still profit in it, GW do seem to be putting more and more products on the direct only list these day though, puts the squeeze on local shops and increases their bottom line on kits to boot. They want every one to order direct from them and i know before my buddy sold his shop he said he felt more and more like he was treated with disdain by GW as a independent

zeep
07-03-2014, 18:26
Sorry to semi-necro this.
I manage a well sized FLGS. We discount to remain competative with the internet.

The issue with most of us disliking direct orders has more to do with the process. We make an order through our sales rep, usually when we get our weekly call. Here’s the problem... Let's say you order "tau drones." I place the order for you on Monday, and check the ordered block on crystal commerce. Gw now withdraws the price of your drones from our account (don't get me started on the billing issues.)
About two weeks later I ask my rep where those drones are? He takes care of it, puts it through to the warehouse. All is good.
About a week later I ask my rep for the drones my customer is asking for. The rep checks, puts a rush on it. We should see it this week.
Later in the week a small 6 by 6 box that shows up. It has drones. no purchase order, but with a little research I can find the customer. Then a week later another 6 by 6 box shows up... same drones. One or two weeks later... you guessed it. 6 by 6 box.

Net effect, we get billed for three separate small bags of drones. Not too much an issue, our rep can usually resolve this. However, billing is not by purchase order for direct order items. It just pops out of the accounts. Takes about an hour figure out what the hell we paid for, what is a double billing, and what was an actual order.

All said and done, I've bought one set of drones that I get paid for, have gw refund the second and third sets 3 months later when I get a return box finally sent to me, then eat the one that shows up the next week.

God forbid any of this somehow went on terms.

Do we still do direct orders? Yup. But only as a customer service. We could not do this if MTG did not fund most of the store. We are a larger store and I can easily see a smaller shop just saying no. For that matter, we consider it at least once a month.

Sorry for any venting.

leopard
08-03-2014, 23:30
Personally I do order stuff from FLGS, not for GW these days as I don;t really need more of it, but for other systems. Would never order just one thing unless I knew a group of people were ordering for that system. Colin is really good about asking round when he is doing an order for some system or other. I tend to order roughly 100 of stuff at once, and will go and collect it as I play there so Colin need not bother with postage (especially on anything heavy), now in that 100 there could be a special whatsit, but the bulk won't be.

Aware he needs to make a profit so will order a decent lot in one go and if there is anything oddball I was after would combine with other stuff I was also after to make it worth the effort.

Colin also makes a very nice cup of coffee.