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'This could change the face of comics': Is coronavirus comic book shops' biggest villain?
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156 posts in this topic

37 minutes ago, lighthouse said:

The exact same incentive that landlords have not to boot Cheesecake. 

There is no ready replacement for Diamond. Rich Johnston would have you believe that PRH could just immediately step in and distribute comics for these  publishers. The thought is ridiculous. Yes PRH distributes books, and yes comics are also printed material. But the scale differences are enormous.

B&N is the largest bookstore chain in the country. If you go to their website, and check “new releases” and sort by date, you’ll find that they average 30-60 new releases coming out each week. That’s 30-60 new book SKUs that need to be tracked. Add in some reprint editions, some hardcovers transitioning to softcover, and the largest bookstore chain in the country is getting in roughly 80-100 newly published SKUs each week. 

If PRH were supplying all those books (they aren’t), they’d need to make room in their warehouse for 80-100 new SKUs each week to go out. Pallets and pallets worth. Thousands of pounds. All of very durable material that isn’t terribly fragile. And items large enough that new orders are in full case quantities and even small batch reorders will rarely have more than 15 different SKUs in a single box. 

A typical week for Diamond sees 300-500 newly published SKUs (the current FOC week has 385).  Perhaps 10% of those are durable items similar to what PRH is used to handling. The rest are fragile and are being sold to condition sensitive customers. Boxes of new orders will routinely have 60 different SKUs all packed in the same box. Every one of those SKUs needs its own separate picking location. Items are easily misidentified. It’s not like pointing at a stack of pallets and saying “there’s the new Nora Roberts”. It’s “there’s the new issue of Spider-Woman with 17 different covers and some of those retail at $200 for a 2oz item that loses half its value if you grip it too tightly when taking it out of the box”. 

DC knows this. Marvel knows this. Image knows this. Just because PRH can distribute pallets of books doesn’t mean they are prepared to distribute comics to the direct market. Could they get there in 6-8 months, build all the infrastructure, train all their people, develop a new supply chain? Of course they could. Could they set up separate warehouses to handle the non-printed merchandise, and process orders for 500,000 SKUs of toys and shirts and statues and the rest? Of course they could. 

So could the publishers have a viable replacement for Diamond in 6-8 months? Sure. They could also take Diamond to court for their back money and just stop publishing altogether. But I think it’s far more likely they let Diamond slide for a while. Because the transaction cost of finding a replacement (or in this case encouraging a replacement to spontaneously develop) is enormous.

This isn’t like loaning money to a meth addict who smoked up the money you loaned him last week. This is like John Deere letting payments slide from a farmer whose spring crop burned this season, but has loyal customers waiting to buy his summer harvest. There’s reason to believe he has the means to make good in the future even if he’s broke now. 

Look at what happened when Marvel tried to self-distribute back in the 90s. A total disaster that contributed a lot to their bankruptcy. That's one of the reasons Diamond emerged as they are now.

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6 minutes ago, Bookery said:

It's a little surreal...

Sitting here alone in the shop, most of the lights off, no employees or customers, and taking note that today marks our store's 36th Anniversary.

I’m sorry.  This is obviously not the way anyone would expect their long running business’ anniversary day to play out.  I know I speak for plenty of others when I say your shop is and always has been my favorite to visit.  Hopefully this can all be in hand soon and some sort of normalcy can resume.  Here’s to many more!  Happy Anniversary!

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My LCS (a small, two-store chain) is closed to foot traffic and delivery, but is now offering mail order service: I'm a subscriber, so I e-mailed and placed an order for the current contents of my box, some extra books they had on the shelves (which I saw courtesy of a "shelf review" Facebook video they posted), and also $100 worth of random SA/BA comics or mags (any title/grade/issue number/price...their choice). 

I called the store to give them my credit card number: the owner was taking the calls himself, and he said that the phone had been ringing off the hook with similar orders for several days.

I guess it's just heartening to know that fans are out there doing their part when and if they can...

Edited by jools&jim
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On 4/1/2020 at 10:03 AM, jaeldubyoo said:

Look at what happened when Marvel tried to self-distribute back in the 90s. A total disaster that contributed a lot to their bankruptcy. That's one of the reasons Diamond emerged as they are now.

Marvel bought a small distributorship that had serious problems to begin with. Marvel went bankrupt because its owners picked it clean, walking away with hundreds of millions of dollars.

They didn't care about the company, or the product.  

If Disney chose to so, I'm sure they could get shelf space at every Walmart and major retailer with the slightest of arm twisting.  Heck, now that Diamond is in default on their payment agreements, Disney could take over the entire industry by making all their product EXCLUSIVE to Walmart.  There is no way Diamond or most LCS's survive that, but it might be better for Marvel/Disney. The only question is would Marvel generate enough revenue per square foot to make it worth Walmarts while.  Or how about an exclusive deal with a Krogers type of store. 

If Starbucks can put a kiosk in a supermarket, why not Disney?

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6 minutes ago, shadroch said:

Marvel bought a small distributorship that had serious problems to begin with. Marvel went bankrupt because its owners picked it clean, walking away with hundreds of millions of dollars.

They didn't care about the company, or the product.  

If Disney chose to so, I'm sure they could get shelf space at every Walmart and major retailer with the slightest of arm twisting.  Heck, now that Diamond is in default on their payment agreements, Disney could take over the entire industry by making all their product EXCLUSIVE to Walmart.  There is no way Diamond or most LCS's survive that, but it might be better for Marvel/Disney. The only question is would Marvel generate enough revenue per square foot to make it worth Walmarts while.  Or how about an exclusive deal with a Krogers type of store. 

If Starbucks can put a kiosk in a supermarket, why not Disney?

The problem there, however, is that most modern comics probably have more mature content in them than a family chain like Walmart or Kroger would want to carry (imagine the controversy had Batman Damned been released in those places!).

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16 minutes ago, Bookery said:

The problem there, however, is that most modern comics probably have more mature content in them than a family chain like Walmart or Kroger would want to carry (imagine the controversy had Batman Damned been released in those places!).

That seems like an easy issue to fix.  Does Walmart sell R rated movies? 

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The other problem is that Walmart would expect returnability. And the bean counters on both sides of that deal would reject it. Walmart can do the math on how profitable periodicals have been for them in the past. Disney can do the math on how profitable returnable newsstand distribution has been in the past. Neither side would want it. 

Certain products need champions selling them to be successful. Comic books have more in common with cigars, recumbent bicycles, plus size lingerie, cutting edge running shoes, premium camera lenses, aluminum wheels, or high end cowboy boots than they do with bananas. Walmart could distribute any of those items, could display them, could restock them, could scan barcodes and take payment for them. But they couldn’t “sell” any of them in the way their respective specialty stores can. All those items are very profitable for the stores than sell them well. But they’re not items that do well using Walmart’s business model.

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8 minutes ago, shadroch said:

That seems like an easy issue to fix.  Does Walmart sell R rated movies? 

Not the same.  Much of the general public, however wrongly, still assumes comics are designed for kids.  They don't have the same assumptions about movies.  

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1 minute ago, Bookery said:

Not the same.  Much of the general public, however wrongly, still assumes comics are designed for kids.  They don't have the same assumptions about movies.  

If the general public thinks that, perhaps its because comics have little to no public exposure. Comics have not been for kids for the last forty years. Many people don't even know comics still are made. They think they went the way of the 8track.

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2 minutes ago, shadroch said:

If the general public thinks that, perhaps its because comics have little to no public exposure. Comics have not been for kids for the last forty years. Many people don't even know comics still are made. They think they went the way of the 8track.

Yep.  They should have been available in mainstream outlets all along... now it might be a shock to the system to drop them in those places all of a sudden?  Also-- if you are going to distribute outside the strict fanboy arena, you are going to have to develop more self-contained stories and fewer 36-part crossovers.  Long-time comic collectors have adapted to this (those that haven't already left the medium), but new readers will never get on board with the current approach.

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On 4/1/2020 at 10:03 AM, jaeldubyoo said:

Look at what happened when Marvel tried to self-distribute back in the 90s. A total disaster that contributed a lot to their bankruptcy. That's one of the reasons Diamond emerged as they are now.

Things have changed a lot since then. Marvel and DC are both owned by two of the biggest corporations in entertainment. Diamond is a dinosaur. Can you imagine if WH and Disney counted on a company like Diamond to distribute their movies, and the distribution method was weird little nerd shops miles from home for most people? 

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To under play the role Heroes World had in Marvel's demise is speculative, but it WAS a disaster for the Direct Market - new minimums to meet, divided between two distributors - the late shipments, misshipments/shortages - now from TWO distributors - the billing issues - every store I've ever talked to that went through it has never had anything good to say. It led to the beginning of the thinning out of comic shops in America.

And Disney putting new comics in Walmart would lead to logistical nightmares - condition freaks - people wanting their books ASAP, back issues piling up - it's different than an R-rated MOVIE - anyone can pick up a comic and look through it. 

There's no question in my mind Marvel/Disney is looking for a way around the DM for the future - and they WILL have comics in Walmart - but I imagine by that point it'll be a great deal more digital anyway.

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2 minutes ago, Bookery said:

Yep.  They should have been available in mainstream outlets all along... now it might be a shock to the system to drop them in those places all of a sudden?  Also-- if you are going to distribute outside the strict fanboy arena, you are going to have to develop more self-contained stories and fewer 36-part crossovers.  Long-time comic collectors have adapted to this (those that haven't already left the medium), but new readers will never get on board with the current approach.

I don’t think the gas station is a good place for comics anymore. But gas stations for the most part stopped selling magazines too. Why not vending machines at the mall? Why not on end caps at the Target toy aisle? Why not at the school book fairs? But the for,at will have to change too. The digest is a better product to be on end caps and handled by kids. Also, kids don’t need to read and collect print comics. Encouraging them to get a Comixology account or read some webcomics (which many of them already do) is still kids reading comics. 

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2 minutes ago, dupont2005 said:

I don’t think the gas station is a good place for comics anymore. But gas stations for the most part stopped selling magazines too. Why not vending machines at the mall? Why not on end caps at the Target toy aisle? Why not at the school book fairs? But the for,at will have to change too. The digest is a better product to be on end caps and handled by kids. Also, kids don’t need to read and collect print comics. Encouraging them to get a Comixology account or read some webcomics (which many of them already do) is still kids reading comics. 

airports.

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13 minutes ago, Lazyboy said:

They were. Those outlets got rid of them.

Bookstores didn’t. Marvel ended bookstore distribution of floppies because nobody was buying them. This isn’t an across the board people aren’t buying comics thing. Archie and DC manage to sell those floppies at the bookstore. They just aren’t making comics than anyone who isn’t already a direct market consumer could possibly enjoy. The format, the price, and the insufferable continuity pushes potential new readers away. People who love Iron Man will never pick up an issue. The Walking Dead tv show managed to make Walking Dead the single most successful creator owned non super hero comic. The show was popular but I don’t remember it being the record breakingist biggest show to ever hit the airwaves. Marvel movies on the other hand are the record breakingest biggest thing to ever hit theaters, and it failed to move a dozen more units. It’s the content

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