MutinyWerks, LLC
Creating an Affordable Hobby Retailer where Collectors come first!
Mutinywerks is breaking into the Hobby Retail Market with the mission of keeping prices lower than MSRP while making a profit. An extended goal of this mission is to upset the market while demonstrating a fundamental point: if you treat the consumer as a human, rather than a resource, and conduct your business with respect for your community, you’ll not only succeed, but do so with a clear conscience.
We hope to set a new standard for business practices within the industry.
Problem
Problem
In the Hobby / Gaming / Collectible retail space, there exists a practice of marking up products 20% or more above MSRP, often citing factors like overhead, shipping, exclusivity or product availability to justify it. This causes inflated prices, requiring a community that doesn’t always have a lot of disposable income to pay more for products.
Some Examples:
A product with an MSRP of $24.99 is listed on a certain site for $44.99. That’s an 80% markup!
Another product that has an MSRP of $99.99 can be found on a certain site for $109.99 That’s a 10% markup!
Solution
Our approach is to base our markup on our cost, NOT the MSRP. For many products, we add only 20% to our cost to obtain our asking prices.
For example, we have Deluxe Transformers listed for $26.99 instead of the MSRP of $27.99. Here’s how we get there:
Our cost: $174.40 for a case of 8. That means each figure cost us $21.80. After we add our 20% markup, we get $26.16, which becomes $26.99 to maximize our gain after taxes.
Another example is one of our blind box products: The Skullpanda x My LIttle Pony figures. They retail for $39.99. Our cost for a box of 6 was $189.00. That’s $31.50 per figure. After 20%, we get $37.80, which becomes $37.99.
Where we really make a difference is with collectible card packs. We have our singles priced so that players can build entire decks for $15.00 or less. We even have a special shipping policy for cards to keep consumer costs down.
Where we make most of our revenue is with RPG’s, Board Games and Single Cards. RPGs and games are priced at MSRP (30% - 40% Markup), since they are harder to find, and our Single Cards are priced at secondary market value (TCG Player, Card Castle, etc.) where we can make between $1 and $20 on cards that cost us anywhere from $0.14 to $0.97.
Where we make most of our revenue is with RPG’s, Board Games and Single Cards. RPGs and games are priced at MSRP (30% - 40% Markup), since they are harder to find, and our Single Cards are priced at secondary market value (TCG Player, Card Castle, etc.) where we can make between $1 and $20 on cards that cost us anywhere from $0.14 to $0.97.
Lastly, we are implementing a Product Lifecycle structure, where we mark products down at semi-annual increments to ensure they move. For example, if we bring a product that costs $10.00 to the customer, but it doesn’t sell in its six months, we’ll mark it down to $9.00. If it still doesn’t move, we’ll package it with other products into mystery boxes, priced at 80% of the value of it’s contents. While this will impact our bottom line, it does keep inventory moving, preventing old products from piling up – a known problem in the collectibles space.
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