FSpaceRPG article

Status: Official

So you understnad, Stephen has spent a considerable amount of time liasing directly with retail vendors.

He has assertained that vendors want to put $15 to $20 margin on gaming style product. Some may be willing to come down to $10.

This does leave us with a problem. If retailer want that kind or margin, then what to distributors want? For NZ, with a distributor, then vendor, we are talking about whopping margins, taking the price of the product into the league of those high priced imports we see on our shelves.

What about foreign markets. Only where currency exchange rates favour us is where we can have a competitive price. Our CD cost is $10 US, and the RefManCD set is $20.

The few vendors I’ve had dealings with in the US want 100% markups, making the prices $20 US and $40 US respectively. We simply aren’t getting the economies of scale in production costs.

We can cut pricing, but this brings us closer to only covering production costs, and never reclaiming our development costs, or building capital for future projects.

Any ideas?

Categories: Development

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