844 West Main Street, New Holland, PA 17557 Phone - 717-351-0359
Mayfair Games Pricing Policy Effective 10/25/2007
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 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.)