Friday, February 18, 2011

Panini Appears Willing to Put Its Money Where Its Mouth Is

One of the topics of conversation at the Industry Summit in Vegas next month is going to be what can be done to aid the remaining brick and mortar hobby shops. Panini has notified their distributors of a strict policy moving forward. While this sounds good on paper it has yet to be determined if it will be enforceable or is merely lip service.

I am not aware, for instance, if Blowout Cards even has a retail presence and I can't imagine Panini giving up that revenue. However, under the terms below, just having one won't be enough. 60% of sales volume must come from walk-in traffic. I'm pretty sure not even Dave and Adam's, who does have a retail location, if not two, can claim that.

So, now that most business owners have figured out how to incorporate online revenue streams into their business model through eBay, the Becket Marketplace, website eCommerce and others, do these new requirements help or hinder businesses who have adapted their model for an online marketplace?

Here is the text of the Retailer Qualification Form:

Please be advised Panini is starting to implement plans to support the Brick and Mortar stores and clarify roles within our industry. Below is the list of requirements/criteria to be an approved Authorized Brick and Mortar Retailer.
Authorized Panini Retailers must adhere to the following guidelines. Failure to do so will result in immediate termination from the program.

o 60% of business is done via in store traffic
o Open for business a minimum of 40 hours per week
o Do you eBay? Provide eBay name: __________________________________
o Do you operate a site for your store? Provide address: __________________________________
o A store email address that is checked daily
o This address will be used for placing online orders and electronic communications.
In addition to meeting these criteria, all retailers must submit the following documents.
o Four pictures of retail storefront. Pictures must clearly show the following:
o Outside signage including front door and windows matching the name and address of store on account application and building marquee
o Indoor retail space showing most current Panini products on shelves and other items you stock
o Bing or Google Aerial view close up of your storefront
o Telephone directory page listing storefront name ,address and phone number
o A copy of sales tax permit
o A copy of most recent sales tax payment
o A copy of lease agreement
o Do you set up at card shows? If so, provide list of shows you regularly set up at.
o Must adhere to pricing guidelines
o Wholesaling of product is not allowed. Product purchased is intended for retail consumption only.
o No cross border selling of any Panini products allowed
o Panini Authorized Retailers must be approved to sell at Trade Shows and on any internet sites.
o Not allowed to pre-sell or offer any Panini product before official street date

What are YOUR thoughts?


Steven Judd said...

More lip service. If anyone believes Panini is going to give up the revenue it generates from product sold through online retailers, I've got some beachfront property in the middle of Missouri that I'd like to sell you.

When you can't meet the revenue demands of the home office, the last thing you do is cut off a major source of revenue.

Rob- AKA "VOTC" said...

That was my exact, first thought as well

K said...

Brick and morter stores are done, why pretend otherwise?

I want to support local shops but when they sell a box for $80 and I can get it for $60 online why would I pay more? Times are tough for stores sure, but they are just as tough for collectors.

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