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So Palladium Books, publishers of the famed tabletop RPG system RIFTS, announced they were facing dire financial straits a few months ago. They said the lynchpin for the company nearly closing was the embezzlement of funds and invetory theft by a former employee. So Palladium solicited help, donations, and sold limited edition prints to raise emergency money to help keep its doors open in a "SAVE PALLADIUM" campaign.
While sales rose dramatically over the past few months, they're strating to taper off-- and they're still not out of the financial hole yet.
So here come this recent announcement:
The problem? This issue isn't rare. You can still find #34 on store shelves for cover price-- which is $9.95. YOu can find it for cover price, in stock, on many online retailers for the cover price too.
These issues aren't signed or anything-- there's nothing extra to justify the huge price increase.
I thought for a bit-- maybe this was Kevin S.'s way of preparing the fanbase for price increases across the board on Palladium products that he mentioned recently, and that this might just be the result of the Palladium staff raising the price of said book to the "new" prices.
Except that doesn't match up with what was presented in the July Press Release in either info or spirit:
If it's a true collector's item (no more in stock anywhere, autographed, etc) then the mark-up isn't that strange. But, if it's still readily available at other locations, even if the distributor is out (because, yeah, books can no longer be available from the distributor but instead be sitting on shelves, unsold), that's another matter. "SOLD OUT!" from the POV of the publisher or even distributor isn't the same as "there's none of these books left for sale."
What's also really weird is that selling product directly from the publisher is usually cheaper, if anything, because they are able to take on more of the profit when they do so. When doing so, the publisher is taking more profit by holding on to a larger peice of the pie that would have been gobbled up by the distributor and retailer, so even selling directly for cover price means the publisher is still earning more. A price mark-up on top of that is indeed needlessly inflating the price if the product is still available in the market unless something else has been done to the product to make it stand out from what you can still purchase elsewhere.
What does this tell us? Several things:
1) The Palladium system of inventory leaves a lot to be desired - "30 copies were found tucked away in the warehouse (misplaced during the Palladium Open House)";
2) Because Palladium sees that people are willing to pay more for one copy of The Rifter - issue #21 in particular, which is significantly harder to find a copy of for whatever reason - they realize that people are willing to pay more money for harder to get items;
3) Because they believed that they had sold out of the issue that is now in question (#34), they believe that this also must be harder to find (which it is not)
4) Thus, because it is a believed harder to find item, it is then equated as being something that is being charged higher for elsewhere (which, again, it is not), thus Palladium feels no qualms in driving their own pricing of it up by 60%!
Y'know, I could almost even buy into this reasoning if the product in question was released while the embezzeling employee was still there. But he supposedly left in February 2005 and the Rifter #34 wasn't released until April 2006. THIS YEAR. Five months ago!
So the loss of these issues would seem to have nothing to do with that employee at at all.
Which makes me wonder-- if they say in their own press release that this inventory was misplaced during preparations for thier own open house.. and a lot of the embezzlement that drove them nearly out of business was due to inventory los... HAVEN'T THEY LEARNED THEIR LESSON?
All this odd dealing for a profit of 180 bucks.
While sales rose dramatically over the past few months, they're strating to taper off-- and they're still not out of the financial hole yet.
So here come this recent announcement:
Now back in very limited supply!
The Rifter® #34 sold out almost immediately and remains one of Palladium’s most requested back issues of The Rifter®. (The Rifter #21, which reputedly sells for as much as $70, is the hottest back issue.)
I think we have some good news: 30 copies were found tucked away in the warehouse (misplaced during the Palladium Open House).
Due to their high demand and collectability, we are selling The Rifter #34 for $15.95 plus shipping –while supplies last. Get ‘em while you can. First come, first served.
The problem? This issue isn't rare. You can still find #34 on store shelves for cover price-- which is $9.95. YOu can find it for cover price, in stock, on many online retailers for the cover price too.
These issues aren't signed or anything-- there's nothing extra to justify the huge price increase.
I thought for a bit-- maybe this was Kevin S.'s way of preparing the fanbase for price increases across the board on Palladium products that he mentioned recently, and that this might just be the result of the Palladium staff raising the price of said book to the "new" prices.
Except that doesn't match up with what was presented in the July Press Release in either info or spirit:
Slight Price Increases are Coming
We will be increasing our cover price on most new books and reprints by a dollar or two. For example, Powers Unlimited 2 and Powers Unlimited 3 will cost $14.95 each instead of the earlier announced price of $13.95. (Don’t worry, those of you who have pre-ordered before the price hike will get the books for the original price.) Likewise, Rifts® Ultimate Edition will be going up from $33.95 to $35.95 this Fall with the second printing.
Palladium’s prices still remain the lowest in the industry by $5-$10 compared to books of comparable size and quality from other RPG companies.
As I have often said, I grew up poor and know what it is like to have a limited amount of money to acquire the books you love. We appreciate our fans and will continue to keep our prices as reasonable as possible. We hope you understand.
If it's a true collector's item (no more in stock anywhere, autographed, etc) then the mark-up isn't that strange. But, if it's still readily available at other locations, even if the distributor is out (because, yeah, books can no longer be available from the distributor but instead be sitting on shelves, unsold), that's another matter. "SOLD OUT!" from the POV of the publisher or even distributor isn't the same as "there's none of these books left for sale."
What's also really weird is that selling product directly from the publisher is usually cheaper, if anything, because they are able to take on more of the profit when they do so. When doing so, the publisher is taking more profit by holding on to a larger peice of the pie that would have been gobbled up by the distributor and retailer, so even selling directly for cover price means the publisher is still earning more. A price mark-up on top of that is indeed needlessly inflating the price if the product is still available in the market unless something else has been done to the product to make it stand out from what you can still purchase elsewhere.
What does this tell us? Several things:
1) The Palladium system of inventory leaves a lot to be desired - "30 copies were found tucked away in the warehouse (misplaced during the Palladium Open House)";
2) Because Palladium sees that people are willing to pay more for one copy of The Rifter - issue #21 in particular, which is significantly harder to find a copy of for whatever reason - they realize that people are willing to pay more money for harder to get items;
3) Because they believed that they had sold out of the issue that is now in question (#34), they believe that this also must be harder to find (which it is not)
4) Thus, because it is a believed harder to find item, it is then equated as being something that is being charged higher for elsewhere (which, again, it is not), thus Palladium feels no qualms in driving their own pricing of it up by 60%!
Y'know, I could almost even buy into this reasoning if the product in question was released while the embezzeling employee was still there. But he supposedly left in February 2005 and the Rifter #34 wasn't released until April 2006. THIS YEAR. Five months ago!
So the loss of these issues would seem to have nothing to do with that employee at at all.
Which makes me wonder-- if they say in their own press release that this inventory was misplaced during preparations for thier own open house.. and a lot of the embezzlement that drove them nearly out of business was due to inventory los... HAVEN'T THEY LEARNED THEIR LESSON?
All this odd dealing for a profit of 180 bucks.
