Not that long ago, Bryan Ansell of The Foundry published an open letter to the wargaming public. The letter was basically Bryan's thoughts on why it was difficult to earn a decent profit manufacturing historical miniatures. I found much of what he said to be valid. Still, there is always more than one view from the mountaintop. Here is another view that may, or may not, shed some light on the subject. Historical miniatures, whether they are used for wargaming or are simply collected for display, are a luxury item, a form of entertainment. They provide a reason to get together with friends and others with similar interests and pass the time in an enjoyable manner. They are not essential to our daily lives and so they do not generally sit atop our priority list. Anyone that is involved in the manufacture, distribution, or retail sale of historical miniatures must reach the conclusion that in order to succeed there must be an added value that causes a customer to purchase a particular chunk of metal or resin. Price is not the only issue although it is a big one. At the retail level, added value is generally the ability to walk in and see product first hand, visually compare similar items, and talk with a shop owner about figure painting or compatibility. It also has a lot to do with the social atmosphere that can be found in a thriving shop. This social interaction and its accompanying atmosphere are an organic part of the industry and the hobby. If you accept what I have said so far then it must make sense that if manufacturers and distributors maintain good relations with retailers, the retailers will more actively promote their products. Manufacturers and distributors who do not support those retailers that have committed to their products will quickly find that orders from the retailers are not what they hoped for. Let me illustrate, with actual events, what I am talking about. I order from my supplier The Foundry. I receive an order 36 days later. They want payment upon my receipt of goods. I order from The Foundry again and this time I wait over 30 days... plus a major part of my order goes unfilled. The order is unfilled because those particular products are not available to retailers in that format anymore. However, customers can order those particular products direct from The Foundry. As a result I have to return some customer deposits and tell my customers the only way they can get the products they want is to order direct from the manufacturer, The Foundry still wants payment upon my receipt of goods. I order again and this time I wait 37 days for my order to arrive. At least now The Foundry are extending me normal terms. While I am working to satisfy paying customers, the lifeblood of any business, here is what I see. The Foundry is my competition and they are offering special discount rates and postage paid incentives to customers who order direct. (They also are offering their entire product line). At this point I would be remiss if I did not mention that Ed Patrick of Foundry USA has always been polite and eager to find some small way to reduce the impact of the overall poor situation... but it is what it is. Meanwhile, I am dealing with John Bruce of FAA. John, who is located in England too, and who has a company much smaller than The Foundry, usually has product to me within 15 days of my faxing him a purchase order. He also keeps me up to date on his pending releases and seems to work hard to get me product as soon as it is available. Another thing, when I have a problem, John is genuinely interested in trying to work out a solution that both of us can live with. Unfortunately, John can not extend the same terms that some other companies can. But I have made the decision to live with that fact of business life based on an evaluation of the situation as a whole. Business is business and there is no regulation stating that any business arrangement has to be fair or likeable. Each and every business decision is the end result of considering many factors and finding the decision that works best for a particular entity at a particular time. However, human nature is what it is and most customers like to be treated fairly and with some level of consideration. It does not matter whether those customers are purchasing at the retail or wholesale level. Overlooking this one simple fact can result in any business, even The Foundry, not achieving the profits they hope for. It may also be the reason that I sell the volume of FAA's products that I do, and why I maintain as complete an inventory of FAA products as possible, while I allow the remnants of my Foundry inventory to sell off and consider whether or not to restock. Back to MWAN #102 Table of Contents Back to MWAN List of Issues Back to MagWeb Magazine List © Copyright 1999 Hal Thinglum This article appears in MagWeb (Magazine Web) on the Internet World Wide Web. Other military history articles and gaming articles are available at http://www.magweb.com