How We Sell Some Inventory Directly to Local Retailers

Over the last 7 years, we’ve primarily sold our products to three different types of customers: Distributors (who sell to retailers), Localization Partners (who sell non-English versions of our products), and Consumers (who buy directly from our webstore. As I reported in our most recent shareholder report, “Last year, 91% of our revenue was from distributors, localization partners, and digital games versus 9% directly from consumers.”

A few years ago we realized that many brick-and-mortar retailers weren’t always getting what they needed to serve their local customers, particularly on popular products. A store might order 12 units of Wingspan from 4 different distributors in the hopes of actually receiving 6 units, and sometimes they wouldn’t even received that (or sometimes they’d receive everything they ordered, and now they’ve tied up their cash in surplus stock).

So we slowly started to build the Stonemaier Direct Retailer Program. The goal was to complement distributors’ efforts to serve retailers by providing a direct line to small, local retailers when necessary.

This was so important to us that we hired Susannah Eisenbraun to be our Retailer Relationship Manager earlier this year (previously this was the responsibility of Alex Schmidt, our Director of Sales & Logistics). Susannah is joining us today to talk about what the Direct Retailer Program is and how it’s evolving, both to inform retailers of what we’re doing and other publishers in case they see value in these methods as well. Thanks Susannah!

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When I interviewed for the position of Retailer Relationship Manager for Stonemaier Games, the first question I asked Alex Schmidt, Director of Sales & Logistics, was this: Are the tasks listed on the job description tasks you are currently managing by yourself? These were tasks related to signing retailers up for the Stonemaier Direct Retailer Program, proactively building relationships and programs with brick and mortar stores, managing the wholesale storefront and sending monthly e-newsletters.

Alex paused and thought for a moment and said, “Yes, but only to the smallest extent.” As Director of Sales in a global company with a small workforce, his work had become more focused, necessarily, on US and global distribution logistics, localization partner communication and management of ocean freight shipping, but all the while he was aware that there was a need to build relationships with the lifeblood of the boardgaming industry — the friendly local game stores. He expressed genuine regret that he didn’t have enough time in the day to build those relationships, and said that this is where the person hired for the position would come in.

This resonated with me. I am not a business person by trade. I’m actually a stay-at-home mom with a long career in professional gardening and an English degree – not your typical sales resume. But I do love people, and I deeply enjoy board games and the communities that spring up around this hobby. I think my ability to zero in on the heart of this matter is partly why he hired me.

This was early January 2022. Now in mid-May I wanted to write about some of the strides Alex and I have made together, as well as some of the areas in which we are still growing and trying to improve our efforts in running the Stonemaier Direct Retailer Program.

How the Direct Retailer Program Works

Here are some basic facts about Stonemaier Games’ direct retailer program: 

• We sell directly to retailers in the US and Canada.
• We have a free shipping threshold for retailers of $150 in the US and $200 in Canada.
• We offer tiered pricing based on the amount ordered with breaks at $500, $1000 and $1500.
• All available items can be ordered a la carte (as opposed to by-the-case)
• Stores have the option to receive a monthly e-newsletter, be added to the retailer locator map and participate in a private facebook group.

Initially my main job was accepting applications through our sign-up form, checking to make sure the store was indeed what and where it said it was, and inviting the manager of the account to our storefront – this process is a check to make sure our retailers are actual stores, not 3rd party resellers looking to flip Wingspan for a couple bucks. I would add the account to our newsletter list and to our retailer locator map if the store opted into those features.

Something I learned very quickly was that this part of the job really appealed to me, which is nice because over time I’ve been doing quite a bit of it. I enjoy going to each store’s website or Facebook/Instagram page and learning what they are all about. I can see that many of these stores not only value their local communities, but also love to distinguish themselves based on the passions of the owners. Sometimes I take the opportunity to add a personal note in my account invitation letter when something particularly resonates with me.

When I began this work our sales were being managed through the main Stonemaier Games customer Shopify website, albeit on a separate wholesale channel. Due to limitations of the platform, these wholesale orders were not simple to separate and categorize at a glance, so we had to wade through lots of data to make sure our orders were being taken care of through our fulfillment centers. Thanks to our Web Manager, Dave Hewer, we started to handle our retailer accounts through a dedicated wholesale shop on March 1. Our goal was to provide a simple shopping experience for our customers, and now with our own site we can have a series of discounts built in that activate based on our tiered system.

In addition to making a more robust push toward a dedicated direct retailer storefront, we had also decided to make a change in our distribution model. We no longer wanted to see our stock allocated solely to the largest stores or get flipped on Amazon for the lowest possible price – we wanted to focus on providing stock to all stores who want it so they can best serve their customers and to not make stores feel like they needed to order the same product from multiple distributors in the hopes of getting their desired quantity after each distributor allocated to them a fraction of their order. We found that there was one hobby game distributor in the US (GTS) and one in Canada (Universal) who were willing to work with us to meet that objective. So on March 1 it was announced that we were consolidating our distribution to these options – GTS/US and Universal/CA, as well as continuing direct sales through our fulfillment centers in both locations. We saw a fairly immediate uptick in direct retailer customers.

Retailer Relationships Matter

The other major factor in the growth of the Direct Retailer Program was a trip Alex and I took to Reno, NV in mid-March for the GAMA Expo – the B2B gaming convention where retailers, publishers, manufacturers and board game media can spend a few days learning from one another about new products and best practices. I loved it! It was so fun to put faces to the names from my inbox and to hear confirmation of my perceptions of these store owners’ passion for their stores and communities. We brought copies of Libertalia: Winds of Galecrest to demo and share. We also made it our goals to listen to what stores wanted to say and to be as transparent as possible about Stonemaier Games. 

Thanks to a personal connection I had made with Lynn Potyen of The GameBoard in Sheboygan, WI, Alex and I had an amazing opportunity in Reno to talk with approximately 20 store owners in a suite over lunch. Alex led the way with humility and candor about mistakes Stonemaier Games has made in the past few years. These retailers were extremely receptive and tender with us, recognizing the difficult position Jamey had been in when Wingspan rolled out to much greater fervor than he had imagined. While he set aside half of the initial 10,000 unit print run for distributors and retailers and rushed to print more, that quantity simply wasn’t anywhere close to meeting initial retailer demand, and Jamey was faced with a wave of retailer backlash that he didn’t handle well. I later learned that Jamey always worried that his handling of the Wingspan situation had permanently soured Stonemaier’s relationships with retailers. But in Reno we were able to experience some genuine healing through the 45-minute conversation. We left feeling energized and excited to continue to grow our Direct Retailer Program, with many of those stores signing up that week.

This brought home to me that I am working with people, that relationships matter, and that listening goes a long way toward overcoming mistakes. I’m thankful to work for a company that would rather admit wrong and try to make amends than hide past mistakes. I can tell that my retailers feel the same way.

Data and Positive Feedback

So between changing our distribution model, making a dedicated wholesale shop and connecting with stores on a more personal level, between March 1 and nearly the end of May we have added 150 new direct retailer accounts (for a total of 230+ active accounts and 352 signups). Since opening the new webstore and initiating a new process for larger orders (pallet-sized), we have had 162 orders, 34 from returning customers, for a total of $131,113.

Recently I reached out to my retailers to ask them to complete a survey assessing the Stonemaier Direct Retailer Program. I gave them the option to remain anonymous or be included by name, and I said that I wanted to both be able to talk about our endeavors up to this point but also to be able to continue to make changes in the future based on responses. I’m very grateful for the 25 who have responded so far, and I’m looking forward to any future feedback I receive.

Of those who responded, many used the words “easy,” “simple” and “straightforward” to describe the process of getting an account and using the wholesale shop. “Website is super clean and easy to place orders on. I can get in and out very fast,” wrote Miles English of Puddletown Games in Portland.

Those who had accounts prior to March 1 noted that ordering a la carte is especially nice – we used to require case quantities, but no longer do. We also have a very low free shipping threshold – $150, about which one retailer said, “I’m a tiny store, and it can be hard to reach $500 with some other publishers. $150 feels like a perfect amount, it’s about 4-5 games. Which is what we usually need for a quick restock.” Those with larger stores mentioned that they appreciate the extra discount for ordering at a higher tier ($1000 or $1500). “Free shipping threshold is great! Also, I like the higher discounts based on order quantity, ” said Dustin Staats of Board Gaming with Education.

Another stated positive is that much of our product is in stock and those items that are not are clearly marked with estimated restock dates and an optional restock notification button.

I was gratified to see that “good” and “clear” communication were mentioned a number of times. Kaleb Michaud of Spielbound Board Game Cafe wrote, “I enjoy the simplicity of the program, as well as the ample amount of communication from Stonemaier to our store both from the reps directly and the email newsletter…the great communication and clarity on timelines, warehouse status, etc – makes it much easier to plan ahead.”

Constructive Feedback

A few of the areas where we could improve were instructive to me:

• One was a vestige of the prior iteration of the program, which as I mentioned required ordering in case quantities. This is no longer the case, but a number of retailers are not aware of this, so I need to do a better job communicating that!
• The same was said of a free shipping threshold, which some retailers are not clear about. When working with my retailers, who are very busy with the day-to-day running of their business, I should try to give them just enough information that they can take it in and not be confused about the details. The goal is to be simple and straightforward!
• Some mentioned having a .csv file of our meta data to make entering Stonemaier Games into their systems easier, so that is something I’m adding to my to-do list.
• Some wanted demo games, and luckily we just implemented a new demo program! We have asked that stores who are direct with us fill out a form to show us how they use demo games, and then they are added to the list of demo stores. We offer 1 base game at 75% per $500 order to be used for demo purposes.

I feel so glad to be working for Stonemaier Games as the contact person for all these amazing FLGS’s, bookstores, birding stores, board game cafes and gift shops who choose to place their orders through our program. In my part-time role, I will continue to try to learn and grow with these shops to make this process as clear, simple and friendly as it can be.

If you’re a retailer in the US or Canada (we hope to add Australia/NZ and Europe someday, as we have fulfillment centers in both of those regions) who would like to try out our Direct Retailer Program, you can learn more and sign up here.

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If any publishers have questions or thoughts about how our Direct Retailer Program works, please let us know in the comments below!

Also read:

• The Current State of Retailers and Kickstarter (2019)
• The Secrets to Making Your Tabletop Kickstarter Project Appealing to Retailers
• What Do Retailers Really Want?

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