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CMON, Inc. Adopts Unilateral MAPP and Restructures Hobby Distribution Network
May 24, 2017

Today, May 24, CMON, Inc. announced it has adopted a unilateral Minimum Advertised Pricing Policy (MAPP) that will go into effect on June 1, 2017. Along with the new policy, CMON has restructured its existing hobby distribution network in the U.S. effective immediately. By unilaterally imposing restrictions on minimum prices advertised by CMON’s new distribution network and retail partners, CMON products’ perceived value in the customers’ eyes will be enhanced, which is in the best interest of consumers and CMON’s partners.

With the adoption of the unilateral MAPP, CMON has restructured their U.S. hobby distribution network to ensure efficient and effective distribution of their products to consumers in accordance with the new policy. As of May 24, 2017, the current hobby distributors CMON is working with include Alliance Game Distributors., ACD Distribution, and Peachstate Hobby Distribution (PHD).

The CMON MAPP will only apply to CMON branded products within the U.S., and products with a Minimum Advertised Price will appear on the current MAPP price list hosted on CMON.com. Adherence to the MAPP is non-negotiable for CMON product resellers, and will be strictly enforced by CMON to ensure the CMON brand maintains a high value in the consumer mindshare.

A copy of the CMON MAPP will be available at CMON.com/mapp and the CMON MAPP price list will be available at CMON.com/mapp_prices. [note: the pages aren't live yet so I don't know if this is going to be the 10-15% off a lot of the rest of the industry is running with but I guess it will be]



I guess this will mean no 'cheap' copies of the KS games that don't sell well, and probably means that Dark Age and Wrath of Kings won't turn up at any of the major online stores either

They could have just said "US stores will no longer be stocking CMON board games."

Well, I can understand why. I have backed every zombicide, arcadia quest, rum and bones, as well massive darkness, wrath of kings, blood rage, sedition wars, etc. I hear many folks online ask why they should back at kickstarter prices when you can get the game and expansions cheaper after retail release (without kickstarter content though).

I've always backed as I felt I was getting a good game at a good price, and like supporting companies that are good to customers and make good games.

I don't think this will effect their board games (in fact it will help FLGS sales vs online sales). However... I do think this will hurt wrath of kings. It is a good game but it has suffered from the same issue as WWX 1st edition (pre warcradle) - mass distribution. If you can't get a skirmish game's minis into many hands, the game will survive but not be as popular. This leads to slow growth without additional kickstarters or tournament support.

Otherwise I don't mind that news. Back the kickstarters or pay full retail is all it means, and why wouldn't one back their kickstarters with the (ebay) value of the additional content you get?

Yeah, that seems like an incredibly stupid idea.

But hey! Seems like a good time for anyone to pick up Wrath of Kings or Dark Age as online retailers put their stock up for clearance (also because they're good games - I can vouch for WoK, at least).

Wait, you actually get your CMON games from Kickstarter? that's a feat in itself!

So they took a look at GWs new pricing policy for the US and thought:

CMON joins FFG/Asmodee and PP in "things I won't buy ever again"

Competition is a good thing, price competition is a good thing.

rich1231 wrote:
Competition is a good thing, price competition is a good thing.

Which firmly makes this MAPP price fixing a Very Bad Thing.

So what they're really saying is.. whatever you're going to buy on KS, buy two so you can throw the other up on Ebay at a discount that retailers can't match?
Seems reasonable..

If CMON was truly worried about the FLGS and the hobby market, they wouldn't Kickstart all of their games, cleaning out large blocks of the customer base before retailers have a chance.

Time 2 Roll wrote:
If CMON was truly worried about the FLGS and the hobby market, they wouldn't Kickstart all of their games, cleaning out large blocks of the customer base before retailers have a chance.

Yep. This is just a drive to get more Kickstarter backers. If everyone knows "this will be the absolute best price I'll ever be able to get it", then, pledge now, or spend triple later on.

Better for the Consumer.... price fixing is always better for the consumer... said no consumer ever.

What they're saying is that actual, physical stores that want to sell the game (whether that's little privately owned FLGS's or Barnes & Noble) need to sell the game at retail price, and Miniature Market throwing out Blood Rage for $50 on a Deal of the Day makes many people either buy it immediately on the cheap, or at least eliminates the possibility that those people would buy it for full price at their local store because they know it can be gotten for a considerably cheaper price.

I mean, I can see what you guys are saying, and I'd love to save money buying my toys, too, but this does make sense.

They aren't saying max discount is (x)%, and that's that?

Ha! I can't believe they actually said raising prices would increase perceived value. Not how that works at all.

 Pugnacious_Cee wrote:
What they're saying is that actual, physical stores that want to sell the game (whether that's little privately owned FLGS's or Barnes & Noble) need to sell the game at retail price, and Miniature Market throwing out Blood Rage for $50 on a Deal of the Day makes many people either buy it immediately on the cheap, or at least eliminates the possibility that those people would buy it for full price at their local store because they know it can be gotten for a considerably cheaper price.

I mean, I can see what you guys are saying, and I'd love to save money buying my toys, too, but this does make sense.

No, it makes no sense. Instead of asking "how can we stop people from paying less?" they should ask "why is the consumer willing to pay so little?" (quote from my buddy)

In this case, Blood Rage is only "worth" $50 on mega sale because that's closest to the Kickstarter price. It is not worth $80.

It's price fixing in the guise of "helping" FLGS - but any FLGS that wants to compete with the internet will need to sell at a discount, too, or offer value-added services that increase the perceived value of a consumer paying full MSRP.

 Alpharius wrote:
They aren't saying max discount is (x)%, and that's that?

we don't know as the pages with that info aren't on the site yet

I'm hoping their minimum retail price is below their recommended retail price as that will at least allow a minimal level of discounts, but it could just as well be the normal retail price meaning no discounts at all (and stores stuck with anything that won't sell as if they do discount their distributor will have to cut them off?)

If their MAPP ends up being "up to 20% off retail", is this a big deal?

 judgedoug wrote:

It's price fixing in the guise of "helping" FLGS - but any FLGS that wants to compete with the internet will need to sell at a discount, too, or offer value-added services that increase the perceived value of a consumer paying full MSRP.

Even worse it assumes the customer will always pay less if given the option. That assumes consumers are rational actors, but the problem is behavioral economics smashed that idea long ago.

Rather evidence actually shows customers will almost always pay more for the same because of perceived value added. The top being convenience, getting it faster, brand of seller, and customer service. For example Amazon customers are more often than not willing to pay more on Amazon even when presented with a cheaper option due to trust in Amazon.

The truth is the hobby industry from the LGS all the way up to the big publishers are woefully out of touch with modern retail practices. The counter argument is of course well it's a niche market blah blah blah. But no one has yet to explain to my why a niche market shouldn't be utilizing modern practices such as omnichannel solutions. Instead they fall back on price fixing which ultimately reduces customer choice and lowers perceived value.

I guess I read it differently than most.

I see it as likely they're putting a 15-25% cap on discounts for retailers. While that may raise some of the prices, I don't know how discounted materials normally are for CMON games.

That being said, CMON must think awfully highly of themselves if this is something they think will genuinely lead to more sales or more perceived value from the consumer. I have some CMON products and they're good, but I don't know if I'd pay near retail for other expansions/bits/bobs.

And, like GW products being limited to 15%...if CMON represents a large amount of product for a particular retailer, all of a sudden free shipping codes will show up (effectively increasing your discount, etc.). Seen this at several sites for GW products already.

 Elbows wrote:
I guess I read it differently than most.

I see it as likely they're putting a 15-25% cap on discounts for retailers. While that may raise some of the prices, I don't know how discounted materials normally are for CMON games.

That being said, CMON must think awfully highly of themselves if this is something they think will genuinely lead to more sales or more perceived value from the consumer. I have some CMON products and they're good, but I don't know if I'd pay near retail for other expansions/bits/bobs.

And, like GW products being limited to 15%...if CMON represents a large amount of product for a particular retailer, all of a sudden free shipping codes will show up (effectively increasing your discount, etc.). Seen this at several sites for GW products already.

There are several ways that retailers can get around this. I've also seen $X off a $Y purchase sort of thing.

 Kriswall wrote:

 Elbows wrote:
I guess I read it differently than most.

I see it as likely they're putting a 15-25% cap on discounts for retailers. While that may raise some of the prices, I don't know how discounted materials normally are for CMON games.

That being said, CMON must think awfully highly of themselves if this is something they think will genuinely lead to more sales or more perceived value from the consumer. I have some CMON products and they're good, but I don't know if I'd pay near retail for other expansions/bits/bobs.

And, like GW products being limited to 15%...if CMON represents a large amount of product for a particular retailer, all of a sudden free shipping codes will show up (effectively increasing your discount, etc.). Seen this at several sites for GW products already.

There are several ways that retailers can get around this. I've also seen $X off a $Y purchase sort of thing.

One of my three favorite stores does this. Spend X, get 25% off. Doesn't matter what product you buy, it's his store that is discounted. And he's brick and mortar only.

 judgedoug wrote:

 Pugnacious_Cee wrote:
What they're saying is that actual, physical stores that want to sell the game (whether that's little privately owned FLGS's or Barnes & Noble) need to sell the game at retail price, and Miniature Market throwing out Blood Rage for $50 on a Deal of the Day makes many people either buy it immediately on the cheap, or at least eliminates the possibility that those people would buy it for full price at their local store because they know it can be gotten for a considerably cheaper price.

I mean, I can see what you guys are saying, and I'd love to save money buying my toys, too, but this does make sense.

No, it makes no sense. Instead of asking "how can we stop people from paying less?" they should ask "why is the consumer willing to pay so little?" (quote from my buddy)

In this case, Blood Rage is only "worth" $50 on mega sale because that's closest to the Kickstarter price. It is not worth $80.

It's price fixing in the guise of "helping" FLGS - but any FLGS that wants to compete with the internet will need to sell at a discount, too, or offer value-added services that increase the perceived value of a consumer paying full MSRP.

CMON has unique issues based entirely on their cyclical model of Kickstarters running every couple of months, while also considering that only a few of those titles are considered evergreen products, as well as acknowledging that they release products direct to retail without Kickstarter. It has to do not only with perceived value of a product (which we simply don't have the metrics to intelligently discuss short of stating our own opinions on the matter), but also the willingness of a retailer to stock the product for future sales with good faith that it will sell through. CMON ultimately wants to push products out the door to the retailers, but after that their main concern must be to maintain a healthy relationship to ensure they can push out their next product. Companies want to grow, and if they burn bridges over and over again, that's not going to happen.

The consumer is willing to pay so little because the consumer can do so safely. I can, right now, go pull up and order a copy of Blood Rage for $55 on Amazon Prime and have it at my house and ready to game on Saturday night if I so choose. Sure, I could run down to Barnes & Noble where I saw a copy on the shelf last week, and pay the $79.99 sticker price to have it right now and know my plans won't fall through. I don't have to, though, because I can save a considerable chunk of change AND still have confidence that it will be here when I want it to be. Blood Rage is even an evergreen product, based on its past success, so I'm not even worried about the consumer-rush to buy it before I no longer can. I can sit and comfortably assume that no, the price tag of $80 doesn't apply to me, because I know there are other safe options.

So based on all of that alone, this change in policy makes sense.

Now, consider that in the past few months CMON was listed on the Hong Kong stock exchange. Suddenly CMON needs to answer to shareholders, and inspire future confidence.

Now again, consider that in a few months from now, they will launch the Kickstarter for A Song of Ice and Fire Miniatures Game, which will assuredly be a multi-millions project, and is one where they've already outlined their product releases schedule halfway into 2018. They will want retailers to stock that line of products, despite the fact that those retailers will know (many from experience) that a vast portion of the consumer base interested in that product have already bought swathes of it on Kickstarter.

It does, actually, make sense.

But that's the point Pug - any retailer with two functioning braincells to rub together will realise immediately that price fixing isn't going to drive people to buy more from them, it's going to drive people to buy more from CMoN during the Kickstarter and even further reduce the post-KS retail sales - everyone who wants a copy for sure will now go in on the KS for certain unless they literally can't afford it, and those who can't or won't go in on the KS will be much less likely to buy later at retail with the prospect of a limited or nonexistent discount.

These companies are price fixing for their own benefit, not for retailers and certainly not for ours - every sale that goes through KS, even with the discounts and free extras, makes them more cash than a copy that has to pass through a distributor and a retailer before it gets to a customer.

During all Amazon board meetings Jeff Bezos puts an empty chair at the table. That chair represents the consumer and it's a reminder to himself and all board members to ask themselves how will this effect the consumer. After all it's not the Brick and Mortars or the Online retailers keeping anyone in business, it's the consumers. That's why Amazon brands themselves as the most customer centric business in the world. So let's do an experiment in this thread. Let's as a group come up with ways this might effect the consumer by role-paying as the consumer, I'll start.

As a consumer I have X dollars to spend on luxury items and board games are luxury items. I enjoy a large variety of board games and so buy products from many different companies. I will often shop with the company that provides both a cost effective means and has great CS, such as free shipping thresholds, guarantee replacement of damaged goods etc. MAP polices mean an overall increase in cost to me as a consumer. Because my dollar amount has not changed I have to reduce the amount of products I buy, I will need to cut out brands that I traditionally enjoy less than other brands. This means I will not be able to enjoy the same variety I used too.

There we go. Who wants to post the next consumer role play?

Well, a consumer might hear about this price fixing business and become immediately turned off to the company regardless of the quality of products. This assumes this consumer is an informed consumer. so roleplaying as an informed consumer, say I miss the CMON Kickstarter - now I know I will never, ever get anywhere near the KS value, especially with the price fixing in place. I will now never buy this product, unless it shows up at a flea market at a convention - and second hand purchasing doesn't generate revenue for the company.

 Yodhrin wrote:
But that's the point Pug - any retailer with two functioning braincells to rub together will realise immediately that price fixing isn't going to drive people to buy more from them, it's going to drive people to buy more from CMoN during the Kickstarter and even further reduce the post-KS retail sales - everyone who wants a copy for sure will now go in on the KS for certain unless they literally can't afford it, and those who can't or won't go in on the KS will be much less likely to buy later at retail with the prospect of a limited or nonexistent discount.

These companies are price fixing for their own benefit, not for retailers and certainly not for ours - every sale that goes through KS, even with the discounts and free extras, makes them more cash than a copy that has to pass through a distributor and a retailer before it gets to a customer.

The funny thing is, like ~1/2 CMON games are actually KS'd.

Wth, I'll do the quick research...:

CMON games/expansions KS'd - 26 per their KS profile + Green Horde (KS profile already says 26 before Green Horde, but one is just terrain for Microart Studios)
CMON games/expansions not KS'd - 29 (based on listed games on their site, also counting The Godfather)

So yeah, more CMON games are NOT KS'd than are. Generally, it's the smaller games, from other design studios that aren't KS'd. But every once in a while, i.e. Godfather, they'll still go straight to retail w/ a big box game from their own studio (Spag Western, Guillotine, etc).

So I'm curious how much this potential perceived KS pledge increase post-MAPP would really change their bottom line.

 judgedoug wrote:
Well, a consumer might hear about this price fixing business and become immediately turned off to the company regardless of the quality of products. This assumes this consumer is an informed consumer. so roleplaying as an informed consumer, say I miss the CMON Kickstarter - now I know I will never, ever get anywhere near the KS value, especially with the price fixing in place. I will now never buy this product, unless it shows up at a flea market at a convention - and second hand purchasing doesn't generate revenue for the company.

To wit we in fact live in a caveat venditor world now instead of caveat emptor. No longer are sales people the keeper of information that they can dole out at their leisure. We now have all the knowledge we could ever dream of at our fingertips. Therefore it is reasonable to assume that the average consumer will be aware of price increases due to any policy shift. Here is an interesting example that Daniel Pink gives in to 'Sell is Human', back before the internet the value of cars would be locked away in a safe at the dealership, the salesman himself would not even know. Now the consumer tells the salesman what the cars value is because they looked it up on the internet.

A note on your role play, try to write it in a first person from the customers perspective, and if possible try to avoid attacking the company. Here's another one

As a consumer price increases represent a loss to me because now the items I enjoy cost more than they use to. Since I am loss averse I will buy items that have increased prices less, especially if they don't represent a necessity.


Automatically Appended Next Post:

 Dr. Cheesesteak wrote:

 Yodhrin wrote:
But that's the point Pug - any retailer with two functioning braincells to rub together will realise immediately that price fixing isn't going to drive people to buy more from them, it's going to drive people to buy more from CMoN during the Kickstarter and even further reduce the post-KS retail sales - everyone who wants a copy for sure will now go in on the KS for certain unless they literally can't afford it, and those who can't or won't go in on the KS will be much less likely to buy later at retail with the prospect of a limited or nonexistent discount.

These companies are price fixing for their own benefit, not for retailers and certainly not for ours - every sale that goes through KS, even with the discounts and free extras, makes them more cash than a copy that has to pass through a distributor and a retailer before it gets to a customer.

The funny thing is, like ~1/2 CMON games are actually KS'd.

Wth, I'll do the quick research...:

CMON games/expansions KS'd - 26 per their KS profile + Green Horde (KS profile already says 26 before Green Horde, but one is just terrain for Microart Studios)
CMON games/expansions not KS'd - 29 (based on listed games on their site, also counting The Godfather)

So yeah, more CMON games are NOT KS'd than are. Generally, it's the smaller games, from other design studios that aren't KS'd. But every once in a while, i.e. Godfather, they'll still go straight to retail w/ a big box game from their own studio (Spag Western, Guillotine, etc).

So I'm curious how much this potential perceived KS pledge increase post-MAPP would really change their bottom line.

Throw in the fact that they've already said a Song of Ice and Fire will only be KSed for the core. Than they will release monthly retail releases. I'm assuming they are banking on strength of brand with that one though.

This isn't exactly price fixing. Price fixing is when several players in the industry collude to ensure they all sell the same thing at a certain price. Like the gasoline companies do,