Replies to post #31306 on Red Giant Entertainment, Inc. (fka REDG)

[rickn23]

I think a balance between Diamond and TRU will be struck. If TRU wants more than 100,000 copies, Diamond will allocate copies to the comic book store, each getting only a percentage of what they ordered. This would free up copies for TRU.

I'm guessing comic book stores will drop their orders, on average, on issue #2. It just isn't as collectible as issue 1.

Now, REDG could hold the price for advertisers and just print and distribute more copies. This would make things easier, but more costly for REDG.

[37thirtyseven37]

True but I would think that for many of the advertisers they might consider paying a bit more to have a bit more advertised. Especially given the broad expansion of where these are going ~2000+ comic stores and ~800 toys r us stores across America. And if you remember we had capcom, carbine, bbc, Lego. These guys can easily afford the jump from 30,000 to 42,000.

This might be in the negotiations as well. It might have been offered we print 500k-2million books to the advertisers from the very beginning but our goal is around 1mil. We don't really know. But I'll tell you this, due to the decrease cost of printing, they very well could print 1.4 million and it would seemingly cost 500-550k to print and ship, for a fully booked fixed rate of 30k-32k per slot (for the million supposed even tho we print 1.4m for them at the cost of 1mil) still gives us super close to a million in revenue which is still almost 500k profit a week. And they would have no problem filling all 32 spots for 30k at 1.4mil advertised. Which is down to 21cpm. So seriously there is no reason to freak out or think that they are not communicating with their potential advertisers and partners. No matter how we slice this deal. It equals large revenues and large profit.
And lastly if Toys r us also wants 900k they could easily split ad slots into two groups. And bundle deals for those advertising in both.