A single self published title could double annual revs by itself, with strong margins... IMO Snakes has extremely high odds of hitting a winner. They have game designers on their staff that study every game on the market and make video/podcasts about them online... Plus, they know which types of games sell via the observations from thousands of customers that come to Snakes.
In their videos/podcasts they critique everything from the gameplay/dynamics to the artwork... They KNOW their stuff and are in the perfect situation to select great titles.
A single hit title can match the revs of a dozen Snakes locations... and it will be the highest margin deal Snakes will make, since they cut out the middleman and have exclusivity from day 1, worldwide
This is possibly the biggest thing they have going... They could drop several hot titles on the market and make 9 figures having exclusivity worldwide.
#lifechanger ____________
Latest Acquisition: Morning has numerous published board game titles on and coming to market shortly. Some of the newest titles that will be hitting the market in the future will be IKAN, Red Panda and Kill the Unicorns.
‘Kill the Unicorns’ is a title the company is especially excited for as the Unicorn theme and trend has been very popular in the past two years. Capitalizing on the strong theme, the game also brings a fun and accessible gameplay to families and casual gamers.
(repost) I love how close they are to three of Mornings games being released...
Even if one or more of these games suck, they can still sell millions of dollars worth before people stop buying it. Crap products sell all the time, from impulse buyers alone... we only need one hit, or multi moderate selling titles to make this acquisition another AMFE cash cow
The excitement is going to build heavy in the coming months. I can see waves of PRs and independent press being centered around these games... One sales PR after the other, from the biggest retail names, for each individual game...
... and there is no bigger news for a penny stock than sales news. We invest our money in companies with the expectation that they will grow, sales news validates it _____________________
(repost) There's an initial risk in printing these games and not selling them, but this risk is reduced significantly when you are a MASTER DISTRIBUTOR of many other hot titles.
Its harder for a small publisher to approach a company like Walmart, with no sales history or other products, which can be worked into the deal to get it done... this is why publishers seek out distributors/sales rep to move their games, which Snakes already is...
... and distributors carry MANY titles, often thousands of different games... just because you land a distributor, does not mean they will put PRIORITY in pushing your titles to the retailers. The reps will have many other titles/toys/SKUs that are making THEM money and they focus on those. You can only talk about so many games in a session.
This is where the synergy of being a publisher, master distributor AND Game Cafe (free/profitable marketing) all tie into each other... Snakes can put priority on their OWN games and push them into Walmart, Target, etc increasing volume fast.
Snakes already has sales history with Walmart.... and the largest Canadian book chain (Chapters)... and other big Canadian retailers that sells games. Snakes is on pace to OWN Canadas gaming market. Look at how many Kickstarter publishers choose Snakes now.
I love synergistic business concepts! _________________
(repost) Morning is a creative think tank/publisher. This is why its such an powerful acquisition for this particular company. Snakes fills in everything else they need to get these products into the hands of the masses.
Snakes even offers them a place they can play test their games with a very experienced/large gaming staff + real world customers. IMO there will be no weak games in the future. Their titles will grow in strength as Steve starts adding his EXTREMELY EXPERIENCED input on game mechanics, rule alterations, how to write precise/easy instructions, etc. Steve is a grand master at this stuff, watch his videos, listen to the podcasts, read his articles, etc. He trains all the other staff on HOW to teach games and even edits rules to make them easier for customers to learn. He is a major asset alone, esp when combined with a game publisher.
___________________
(repost) How many publishers have distribution and game cafes?
There are a lot of GREAT games that never get noticed. EVERYTHING is about getting noticed nowadays... Weak games can sell $XX,XXX,XXX just because it was in the store, not because it was good. A customer only needs to buy ONCE
... and is there any better place to get noticed than Game Cafes, with Game Gurus that can direct customers to play the titles they want?
Many customers rely on the Gurus to recommend games and teach them... and if people EASILY learn a game and enjoy it, the odd increase that they will buy a copy before leaving Snakes, or the next time they see it at Walmart and think "Hey, that was a fun game! My nephew would love to play this with me".. Either way we make $$$ __________________
(repost) All they have to do is advertise that all or part of the cover charge can be applied to one of Mornings games , if they buy before leaving... and this is off the FULL retail price, which means they would still collect more than if they sold at wholesale
This would not only get people interested in TRYING the games while in Snakes, it would also drive per location sales. Snakes cuts out the middleman, so they would STILL make a strong profit per copy at a sexy discount price...
... and most of these customers that buy one of these copies will take it home and play with others, because most games cant be played alone. This markets the game to additional people, who then might buy a copy when they see it at the store, on Amazon, etc.
This is why the sector is booming right now. People want to do things that are more social, away from their digital devices. This viral sales process is powerful and can push a game from nothing to $10's of millions, in just months.
... and all we need is ONE of these titles to be big... or all of them to do moderately well... ___________
The Snakes & Lattes Inc. locations have been hosting game designer nights for quite some time now and with being so deeply entrenched in the table top gaming community, it has begged the question internally for many months now as to when the company will begin entering the game publishing arena and bring new titles to market in-house. Snakes & Lattes is currently positioned to manage all stages of new projects beginning from inception to product launch, and will use its current resources for research and development, product testing, marketing, and of course sales and worldwide distribution. This move would bring a far greater ROI when compared to the ROI on the current game titles that we stock and distribute, essentially 'cutting out the middleman' and allowing us to stock and distribute larger volumes and further expand into additional markets internationally.
The current costs associated with stocking game inventory is comparable to the costs to print and manufacture our own game titles, which would not only provide larger volumes for the same price, but also immediate worldwide exclusive distribution rights. We will use our retail locations as 'proving grounds' for new game titles prior to publishing in order to determine which titles will generate the highest demand. This will of course be in addition to maintaining and growing our current sheet of exclusive distributorships from other popular game producers.
The company is currently working on acquiring the rights to publish our first game to kick-off our publishing division. The first game under this initiative is currently in the works and will be developed in conjunction with an experienced game author based in Switzerland. The specifics of the game are still a closely guarded secret so no further details relating to the game will be released at this time to protect the intellectual property. We will provide further details relating to the project when appropriate to do so, likely coinciding with the upcoming Fan Expo in Toronto this August, where Snakes & Lattes will be hosting a board game café and retail store in partnership with CAH and other major publishers.
Capturing world-wide distribution as well as maximum margins from production to sale leaves the company better positioned to expand all aspects of the business, and significantly increase the rate at which retail store and gaming café locations are opened. With the new Midtown Toronto location being the third and largest location, set to open this summer and boasting an impressive 2 stories, 55 tables inside and 5 tables out on the patio all the while accommodating up to 340 customers, the company has its eyes set on the immediate expansion across Canada and the United States.
The newly formed publishing division in addition to the successful retail and distribution divisions, is expected to significantly increase profitability at a minimal start-up cost by utilizing the company's existing assets, resources, and market reach. In terms of the company's expansion, this is the most cost effective and logical step towards the company's intent on complete market domination by continuing to execute on its successful business model which has been proven year over year. _____________ Nothing can grow Snakes faster than a hot self published game title. NOTHING. We could see revenues spike, in just months. Due to initial stocking orders alone...
...and the margins will be their highest, because they are the publisher+master distributor+marketer... and they sell directly to consumers online and in each location, which has even greater margins. This will allow them to offer promotions to move copies, while still maintaining strong earnings.
DO THE SIMPLE DD... They are in the perfect position to move copies and get it known.
Back to back to back sales orders could hit fast, because we wont be limited to just Canada with these new titles. _____________________
As ive been saying for months, the current revenues, net profits, etc are nothing compared to whats coming from their self publishing division, alone
No need to overthink it, just do the simple DD. They are going to push these titles hard and no other aspect of the biz will have higher margins.
AMFE could have ZERO revenue right now and a SINGLE game could make this a fairly valued $XXX,XXX,XXX company. The growth potential is not only massive, it can happen FAST. ______________
Proof these games will be in Walmart soon...
FYI, this type of "exclusivity" is short term. It is likely how we were able to negotiate these large "firm PO's" before the games are even printed. In a way they are funding the inventory... and if you are going to let any retailer be the first to have these games for a limited time, Walmart is it!
Walmart will likely run ads and let it be known that they carry our products, because they are the only ones that people can buy them from, initially. This will help build brand awareness...
My guess is the exclusivity will last for 3-6 months and they will feature us all over the place, moving all their inventory + place additional orders. They know board games are hot, it is their job to know, they will take advantage
Make sure to sign up for the waiting list for these games, Wally will like seeing that. You do not have to create an account, just enter email. ______ Today, Walmart operates over 11,200 retail units under 55 banners in 27 countries and eCommerce websites in 10 countries. We employ approximately 2.2 million associates around the world – 1.5 million in the U.S. alone.
Through Walmart we could expand and penetrate multiple countries, fast. They give us vast reach. This is such a huge deal.
With 3 titles it could be worth $XX,XXX,XXX in less than a year. ______________ (New) First Kill the Unicorns retailer in the philippines. Its a game cafe/retailer accepting pre orders.... Yep, we are going global. lol...
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