Tuesday, August 30, 2011

Meanwhile, in Kothas...


Click to see the original in all its glory on Wondermark.

Loot! vs. the FLGS

Scott Thorne over at ICv2 is concerned that the RPG deal-of-the-day site Loot! is going to harm retailers.

What will concern us is if Army Builder (or any other product) shows up regularly on the Loot website as that will permanently devalue the price of the software (or any other product) in the mind of the consumer and if customers sign up for email delivery of the daily Loot! item., thus putting it right in their inbox, rather than them having to visit the website.

I can't help but think he's looking at the wrong place. As far as I can tell, Loot! only does their deals on a one-time basis, and in the months I've been receiving their notices (their blog is also listed in my blogroll over at the left, by the way) I can't remember a deal that has been repeated.

Sure, Scott's store might lose one or two sales from the (retail price $39.95) Army Builder being offered for $19.95 for 24 hours on Loot! But I really think they're going to lose a lot more business from it being offered over at Amazon.com 24 hours a day, 7 days a week, for $26.92.

Loot! gives some great deals, often on some obscure stuff that appeals to niche markets. They're not the problem that FLGS's are facing. It's the fact that FLGS's charge bust-out retail for their products. I understand the margins and everything, and I don't pretend to have a solution, but I really think fretting about a very minor competitor like Loot! is missing the real threat to brick-and-mortar stores.