SpideySavestheDay wrote:I wondering if the retailers who do order the superfluous number of copies of Iron Man already have a customer committed to the variant? The risk seems extremely high for small businesses.
As a small comic shop owner, in most cases, yes we will have a buyer lined up ahead of time. There are a few small exceptions where we will go out of our way to order something (Alex Ross SW #1 variant) that we know will indeed be purchased with strong sales of the excess number we wouldn't normally order.
That being said, pricing variants is an extremely tough area when you get to the multiple tiers of ordering. For example, if you have the following variants ordering:
Standard Cover
Order 150% or more of your order on number 7 of god knows what title here - get this variant all you can order
1:15 A
1:15 B
1:25
1:50
1:100
For the sake of math, let's say we get 50% off the cover through Diamond, and our title is a $4.99 cover price (our copy costs $1.99). One of our regulars, Joe Buyer, comes and says he wants the 1:100, what's it going to cost him? First we tell him to give us a day to get out our slide-rule, abacus, Jack Daniels, and Advil, and we will call him back. After looking at the variants, we feel we might as well get all of the 1:X variants along the way, as we stand a chance to cover their cost to us more easily than the regular covers.
First step - how many books are we talking total (before the 150% of X malarky)? Guaranteed 100, plus:
(1) 1:100 var
(2) 1:50 var
(4) 1:25 var
(6) 1:15A var
(6) 1:15B var
That brings us to 119 books. Our normal sell thru on this title is 20. That means I have 80 books left before counting variants. 80 * 1.99 = $159.20 for me to break even by just selling the 1:100 to cover the cost of the other 80 that will likely sit on the shelf or be banished to a long box in the basement destined for a Con at $1 a piece.
Now I have the other variants, what the hell am I going to do with those, and how am I going to not screw Joe Buyer, but make sure I make money? This is where it gets tough. Do I play the game where I sell to Joe Buyer and aim to break even, and hope that I make my money out on the other variants? He is a regular, and a good guy. So, I suppose we can take a chance.
That means:
1:100 = $150 (we are really nice, we ate $9.20)
So, I have to make up another $150 to make my normal sell thru profit margin. Noticing that the variants are decently printed, I can't get carried away with pricing (and in all likelihood I consult DCBS to see what they have the price set at). I settle on the following:
(2) 1:50 = $40 ea
(4) 1:25 = $15 ea
(12) 1:15 = $8 ea
That gives me a total potential profit of $236 (not likely that I will make that, but potential is there).
So, now that I worked out my pricing, I am set to order the books, my normal cash outlay for this title is $39.80 per month (20 books @ $1.99). My new cash outlay is $236.81. Seems small, when you look at it like that. But if you factor in that this book is 1% or less of my order, and is now 6x more. Not too mention I have not even thought of the order 150% of XX, it only goes up. Then multiply it by the amount of other variants, and the number of other Joe Buyers that come in.
We do turn people away, because we simply can't tie up so much money in speculative sales, and one thing is for certain - the amount of time spent trying to figure these things out can be maddening every month.