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[T]hey discovered that selling on a platform like Amazon was totally different from running their drugstore or even a standalone website... They could sell whatever they wanted, at whatever price, for whatever period of time. A marketplace vendor doesn't worry about stocking a full line of shampoos, or whether certain soaps are always on sale. If they want to sell lotion one week and hairspray the next, they can do that.



Early on, the guys decided that it would be easiest to offer whatever their suppliers had in stock. They built each online listing, and had a developer code a script that scraped the suppliers' databases to enter each product's information. When a customer ordered something, they in turn would order it from the supplier, pick it up, and then pack and ship it. That's still the model, more or less, though nowadays they order in bulk using sales projections and need three trucks and a van to pick everything up. Inventory often stays in their warehouse only for a few hours before going right back out the door. The business is less like traditional merchandising than it is like a commodities trader from a bygone era, buying and selling well-known goods and turning a profit on each transaction.

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The next time you buy some humdrum product on Amazon, pause for a moment and check the Other Sellers listed on the right side of the page. That lip balm? Thirteen vendors offer it. Those vitamins? Twenty. As you click and shop, a battle rages in that little box, fought every day by entrepreneurs like [Pharmapacks'] Vagenas and Tramunti on practically every one of Amazon's 410 million product pages.



This is the Amazon Marketplace, where anybody can sell just about anything right alongside Amazon's own wares. Unlike eBay, where each vendor maintains a separate listings page, Amazon tidily groups its Marketplace sellers by item, hiding away the inferior offers, to showcase the best deals up front. (In seller parlance, landing the number-one spot is called "getting the buy box.") What looks so clean on your screen obscures the messy and massive jungle of the Marketplace: There are now more than two million sellers on Amazon. While the Seattle-based giant still sells the most popular items on the site itself, Marketplace sellers now ship nearly half of the products — about two billion items each year, all told — and those sales are growing twice as fast as Amazon's, according to the consultancy ChannelAdvisor. The Marketplace started in 2000 selling used books. In 2016, it's a retail phenomenon as significant as any in the past 50 years — together these sellers ring up what ChannelAdvisor estimates to be $132 billion in sales each year. That's more than Walmart sold in 1997. Yet we know so little about who they are.

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Dear Trade Customers,



Greetings from Mayfair Games! Our team wishes you all well. After all, we wouldn't be looking forward to our 27th year of publishing fine games without your strong, enduring support.



We're writing to you to outline our retail pricing policy. Our manufacturer's suggested retail prices ("MSRPs") reflect our firm belief in a healthy balance between "free trade" and "fair trade." Mayfair Games embraces and supports healthy competition. We feel that in order for our market — and thus our company — to prosper now and over the long term all our partners in the distribution chain need to respect this balance.



Whenever a firm threatens healthy competition among our trade customers, and thus endangers this balance, we must act in a vigorous, even-handed fashion to police the distribution and sale of our fine products. Mayfair Games doesn't intend to specifically dictate how its customers do business...but we will act in cases of predatory, irrational, or patently detrimental trade activity...



So, it's important that all of our trade customers know where we stand on pricing and discounting...



• Distributors should sell Mayfair Games products at no less than a 25% margin or no more than a 50% discount off MSRP.

• Retailers should sell Mayfair Games products at no more than a 20% discount off MSRP, or the appropriate ratio given exchange rates.



Trade customers that violate these guidelines shall be subject to sanctions. If necessary, we will cut them off.



We're well aware of the fact that our individual customers operate under individual circumstances. Some are more profitable than others. Some seek to establish themselves or need to acquire some critical market share. Mayfair Games understands, and sympathizes with, this reality.



At the same time, we've been in business long enough to know that that it's far better for us to encourage healthy competition rather than cutthroat discounting. Ours is not a mass-market business, nor is it a business based on inter-changeable widgets. Our wares are special, unique, premium games. Savage discounting is unnecessary and counter-productive for everyone in the mid-to-long term. While some individual consumers might benefit in the short-run, rabid discounting only acts to erode the profits and incentives necessary to keep our market healthy.



As it is, consumers receive great entertainment value for full MSRP. It's unnecessary — and even a bit insane — to subsidize folks who already enjoy a good deal. It is far healthier for us, our distributors, and our retailers to derive a healthy profit from the sale of our games than it is for us to see them dumped into the marketplace. Every viable firm in our distribution chain should collect its fair profit and have an incentive to further promote, buy, and sell our games.



Our trade customers should endeavor to increase their profit margins, not their discounts. They can thus improve service, which — along with the high quality of our games — should be the principal means of growing our market.



Mayfair Games asks all its trade customers to understand that we are partners in growing a healthy games market. Again, we want free and fair trade. It's healthy...for all of us. It's in our best interest...and in the best interest of the entire social game industry.



That's all for now. Take care.



For Mayfair Games,

Pete Fenlon

(CEO, Mayfair Games, Inc.)

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The game market needs a healthy balance of core market and broad market retailers. The former serve as our consistent retail foundation, the latter as a means of occasionally reaching out to a broader audience. Titles that appeal to the latter still sell in the core market; however, it's not a two-way street. This means that in order to sell the games that generate much if not most of the profit that keeps the industry alive and healthy, manufacturers rely on shops both within and without the core game trade.

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Since my sales clerk is not as knowledgable on games as I am, I stepped out and had a good conversation with the couple, in their late 40s, who wanted to find the Cat-On Game.



I showed them the game, discussed its playability, and asked how they heard of it. It was for their son, returning from a tour in Iraq, and he wanted it. They then expressed absolute sticker shock when I showed them it was $38.00.



The father was a bit surprised that a "game" could cost $38.00. Why they had just bought a nephew a set of



I asked them how often they played their favorite game. They were a bit surprised by the question, so I asked them whether they played cards, bowled, bingo, paintball or volleyball. This confused them more. I explained that all of these were examples of "playing a game" — though the games were far different, they were all games.



I went on to explain that Monopoly and Settlers of Catan were not competing products. That Settlers of Catan was a game product that competed for their time with a video rental, or maybe playing Euchre with friends. I also said, "I am not sure I really like this game, I haven't decided yet. I have played it only about 500 times." They laughed, then I explained that I was not exaggerating — I had played Settlers about two or three times a week for about four years.



They asked why I wasn't bored with the game, so I went into the replayability factor of having a randomly generated board with the tiles, and how starting positions were taken, etc. I further went on to say that if they played Catan only ten times, it would have cost them less than $2 per player, per game. I also mentioned that most people who played and enjoyed the Catan series of games played it more than ten times.



Then I closed with my best pitch: "If you buy this game and play it — and decide you don't like it — I will take a return on it, opened and played, for a full refund."



They bought two copies, one for their son and one for them. They are coming to our next game night to play On a not completely unrelated topic, last evening, after posting the earlier thanks to Mayfair, I had a couple come into my store and ask the sales clerk on duty: "Uh, we are looking for a settlers of Cat-On."Since my sales clerk is not as knowledgable on games as I am, I stepped out and had a good conversation with the couple, in their late 40s, who wanted to find the Cat-On Game.I showed them the game, discussed its playability, and asked how they heard of it. It was for their son, returning from a tour in Iraq, and he wanted it. They then expressed absolute sticker shock when I showed them it was $38.00.The father was a bit surprised that a "game" could cost $38.00. Why they had just bought a nephew a set of Monopoly for $14.99 at a TRU in Kalamazoo!! How could this (smaller) game be worth more money!?!?I asked them how often they played their favorite game. They were a bit surprised by the question, so I asked them whether they played cards, bowled, bingo, paintball or volleyball. This confused them more. I explained that all of these were examples of "playing a game" — though the games were far different, they were all games.I went on to explain thatandwere not competing products. Thatwas a game product that competed for their time with a video rental, or maybe playingwith friends. I also said, "I am not sure I really like this game, I haven't decided yet. I have played it only about 500 times." They laughed, then I explained that I was not exaggerating — I had playedabout two or three times a week for about four years.They asked why I wasn't bored with the game, so I went into the replayability factor of having a randomly generated board with the tiles, and how starting positions were taken, etc. I further went on to say that if they playedonly ten times, it would have cost them less than $2 per player, per game. I also mentioned that most people who played and enjoyed theseries of games played it more than ten times.Then I closed with my best pitch: "If you buy this game and play it — and decide you don't like it — I will take a return on it, opened and played, for a full refund."They bought two copies, one for their son and one for them. They are coming to our next game night to play Pillars of the Earth , too.

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The most significant obstacle in the growth and perceived value of the gaming business is the need for players to find other players, and for new players to enter the hobby. I estimate that the hobby loses between 10-20% of its players every year, so the creation of new players into the hobby is vital for every participant to have a thriving marketplace and have exciting new products developed.