Cash Flow in the Corn: The Gamers

Industry News

by Jon Compton



Dean Essig recently reported annual profits of $40,000 for The Gamers. Although business has been good, the company is experiencing a cashflow problem. This deficiency was caused by Mr. Essig's cessation of direct marking and discounting of games by mail order (see above for the reason).

Many retailers complained that these tactics were hurting their business; and Mr Essig, one of the nice guys of the industry, gave the distributors a break and stopped his aggressive marketing program. The result was disappointing. Sales fell off and left The Gamers with a cash-flow problem that needed immediate fixing.

Thus Mr. Essig has begun a two­-pronged attack to bring his company back in the black or green. All Gamers products will get a $4 price increase on 3 November. In addition, direct sales of games will again be emphasized. Patrons who buy games direct will receive a substantial discount on pre-ordering new games, a good discount on purchasing older games, and free mailing.

The Gamers put out a good product, and it would be a shame to see them cut back operations or go under because Mr. Essig tried to be nice.

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