Apr 272010
 

So, for a while now Evil Hat has been offering the Brick & Mortar PDF Guarantee (read about it here).  This is a program we’ve test-driven with the help of Endgame, then expanded as a casual, as-asked-for thing with our customers.  Its implementation has always been dirt simple — the customer contacts Evil Hat or asks their retailer to, we ask for some sort of proof of the purchase, and then we use DriveThruRPG‘s complimentary copy sending tool to get the customer the PDF for the physical product they bought.

Dirt simple is the key to this. There’s nothing fancy here. There’s a little bit of trust, all within reason: we trust the customer not to try to pull a fast one on us (if sending us a scanned receipt or the like), we trust the retailer to be forthright with the verification of the purchase, and so on. We’re getting something for that extension of trust, too — a customer that’s just a little bit more of a fan of ours, a retailer that’s aware that we’re working to keep them in business while still giving their customers the advantages of the electronic form of the product.  These seeds of trust grow into relationships, and relationships are how we earn repeat business, both from the customer and the retailer.

And past that, we’re doing it with pretty minimal risk; considering we’re already willing to sell people Print+PDF bundles at no extra charge over the print copy alone, the PDF at risk of being given away without a backing purchase is already getting treated like an advertising expense, an incentive to drive sales of the print product, rather than a salable stand-alone item. While we do sell the “solo” PDF as well, that’s not the transaction that’s occurring here. So in the rare and unlikely case that someone’s pulling a fast one on us, so what? They’ve pulled a fast one on us to get access to a piece of advertising.

When it came time to look at doing this sort of thing with a preorder, however, some elements had to be re-jiggered and adjusted for that particular scenario.

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Where We Started

Lifetime:

Penny: 398 (so close!)
DLYM: 752
DRYH: 2562
SOTC: 4937
SOTS: 585
S7S: 868

IPR For Q1 2010

Penny PDF: 6
Penny Print: 40 (29 to retail)
DLYM PDF: 4
DLYM Print: 59 (52 to retail)
DRYH PDF: 10
DRYH Print: 79 (69 to retail)
SOTC PDF: 7
SOTC Print: 111 (88 to retail)
SOTS PDF: 2
S7S PDF: 4
S7S Print:  59 (40 to retail)

OBS For Q1 2010

Penny PDF: 11
DLYM PDF: 32
DRYH PDF: 49
SOTC PDF: 69
SOTS PDF: 11
S7S PDF: 36

e23 for Q1 2010

DRYH PDF: 1
SOTC PDF: 4
SOTS PDF: 1

Lulu for Q1 2010

DRYH Print: 3
SOTC HC: 4

Distribution Orders in Q1 2010

These were Esdevium; Alliance has placed PO’s, but I’m considering those to be Q2 numbers since I’m invoicing them in April.

DRYH Print: 12
SOTC Print: 48
S7S Print: 6

Evil Hat Webstore Totals for Q1 2010

Penny PDF: 7
Penny Print: 7
DLYM PDF: 6
DLYM Print: 7
DRYH PDF: 15
DRYH Print: 15
SOTC PDF: 8
SOTC Print: 31
SOTS PDF: 6
S7S PDF: 2
S7S Print:12

Also, Paul hand-sold 2 copies of Penny at OrcCon.

Totals for Q1 (Drumroll Please)

Penny PDF: 6+11+7 = 24
Penny Print: 40+2+7 = 49
DLYM PDF: 4+32+6 = 42
DLYM Print: 59+7 = 66
DRYH PDF: 10+49+1+15 = 75
DRYH Print: 79+3+12+15 = 109
SOTC PDF: 7+69+8 = 84
SOTC Print: 111+4+48+31 = 194
SOTC HC: 4
SOTS PDF: 2+11+1+6 = 20
S7S PDF: 4+36+2 = 42
S7S Print: 59+6+12 = 77

Lifetime:

Penny: 398 + 24 + 49 = 471
DLYM: 752 + 42 + 66 = 860
DRYH: 2562 + 75 + 109 = 2746
SOTC: 4937 + 84 + 194 + 4 = 5219
SOTS: 585 + 20 = 605
S7S: 868 + 42 + 77 = 987

Analysis

Few surprises: Things which were expected to be anemic, were.

Don’t Rest Your Head Doesn’t: DRYH seems to have been getting the love this past quarter. It felt surgey while I was watching various numbers scroll by, but I think the add-ups support that.

IPR is now primarily retail: As I expected, as the Evil Hat webstore matures, the direct sales biz at IPR — while still present — has dwindled. This is also likely partly due to our back catalog accreting a few more motes of dust on it. But IPR’s still doing very solidly in terms of retailer sales for us, and that’s something.

I’m sure there’s more to say, but that’s what I have time for today. Hopefully the math isn’t completely goofed up.

Quarter 2 ahead is gonna be a real interesting one. So this is our snapshot of how things looked in the “before time”, with SOTC just cresting over 5000 copies (physical and digital) sold in its lifetime, and DRYH at better than half that, S7S close to 1000 and Penny close to 500. Interesting times.

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Apr 092010
 

Day to Day Sales Volume (first 5 days)

Cumulative Sales Volume (first 5 days, each title)

Totals For The First Five Days

Date Your Story Our World
4/4/2010 283 271
4/5/2010 158 154
4/6/2010 62 59
4/7/2010 59 55
4/8/2010 38 34

600 copies of Your Story, 573 copies of Our World preordered. A total of 1,173 books.

The Numbers

These are based solely on preorders placed through the Evil Hat Webstore. I take ‘em to be a pretty damn good sign, even with the (expected) tapering off over time.

This is a very short time period to be sampling; it’s not clear what the basic level of day to day sales is going to look like without the early “alpha strike” effect in play.  We also have some economic milestones ahead: taxes get filed on the 15th, so people may be waiting on refunds, and mid-month, two-week, and end-of-month paychecks haven’t landed yet.

As I noted earlier this week, if we hit about 1000-1100 direct-sale orders of each book, we’ll be looking at a break-even point.  So where we’re at, we’re over halfway. And that’s before factoring in eventual sales into distribution and retail, through IPR, at conventions, and so forth.

Factors Going Into This

So what factors went into this preorder?

Killer IP: The Dresden Files is an incredible license, and its fans are legion.

Our Own Brand Strength: Evil Hat’s been putting out well-received games, if intermittently, for a few years now.  People are now buying our games because they’re our games, not just because of the license in this case.

Positive Anticipation: We’ve been carefully managing the anticipation of this game for a long time. We’ve had to, because the game has taken a dog’s age to assemble.  But measures were taken to make sure that — as much as possible — that anticipation stayed as positive as it could.

Transparency: Part of that was done by doing what I’m doing right now: running the company very openly, rarely if ever spinning the facts hard enough that people felt like we were hiding something.

Community: We invest time and attention and respect and response in our community whenever we can.  I’ve talked about this in other posts on this blog if you want to get into the nitty-gritties of it, but the end result of it is: we don’t have customers, we have fans, and those fans are eager to support us.

Generous Previews: We’ve been previewing content for… well, years, now.  Not long before the preorder started, we put out our biggest preview yet, an entire chapter that showed in 40 pages what a campaign using the game would look like (and showcased the visual qualities of the game as well).  This built confidence that an early purchase would not be a wasted purchase.

Instant Content: People get access to the PDFs right away (even if they’re a little incomplete). This lets them hit the ground running, and enables them to build enthusiasm for the product’s impending release.  By the time the books ship, reviews will already be posted, tweets will be tweeted, drums will be beaten, and games will be underway.  That’s momentum.

Partnership and Choice (A Sidebar): And it’s momentum we’re sharing with retailers as we sign up more FLGSes to deliver the PDFs in-store when people preorder there (even though those numbers are not a part of the totals I’m sharing today).  That builds a community in the store, with the store, and allows our fans to feel like they can make a choice that supports both the publisher and their local businesses without having to sacrifice anything to do it.  People like to win for free.

Timing: Changes, the 12th book in the series, landed at about the same time as the launch. Tax day and tax rebates are just around the corner. We said we’d be launching the preorder the day after Easter, but did it on Easter so folks feel like they got a killer easter egg to open.  The preorder was launched without a lengthy period of time since the big Baltimore preview (so we caught that wave as it was still rising). We kicked the whole thing off with an instant content preorder at the Endgame Oakland minicon on the Saturday before, where at least a couple of the slots were Dresden Files sessions.

Control of Channels: I maintain Jim Butcher’s official website and forums, so it’s easy for me to create awareness of the product in a highly targeted audience. I can operate in a mode of high availability and responsiveness on discussion forums and mailing lists (I have a few years of practice at it by this point). Encouraging people to download the Baltimore preview of the game from DriveThruRPG meant I could use DriveThru’s potent suite of sales tools for outreach: was able to announce the preorder to nearly 500 downloaders.

Partnership Part II: And by working with and not against retailers (see above) I’m able to engender enthusiasm and cooperation on their part.  The fact that the preorder is shared with them means that I’m not “stealing” orders away from those stores, and that in turn means those stores will be motivated to step into a role as a remote, distributed sales force and affordable method of advertising.  Assuming that this strategy pays off, it should result in larger orders happening through my distribution partners, saving me time and money by giving me bigger quantities to ship direct to them from the printers when the books are done. This minimizes double-shipping costs.

Any questions? Any factors I missed?

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Apr 072010
 

We launched the Dresden Files RPG preorder on this past Sunday, and I’ve been plenty transparent about what’s going on over on Twitter, both in the fredhicks and dresdenfiles tweeter accounts.

So, I was tooling around for commentary and ran across this post at Lamentations of the Flame Princess.  I’m gonna quote a big chunk of it here, then get into some nitty gritties:

Tweets from Evil Hat‘s Fred Hicks indicate decent chances that they will hit 500 pre-orders each (on a book that’s not shipping for another 2-3 months) today.

That’s $45,000 grossed in two days.

He also said, “If those numbers hit 1000 each in direct-sales preorders, the print run (5000 copies each) and nearly all production costs will be covered.”

$90,000 gross to cover print and production costs. That’s one hell of an investment. Evil Hat’s not even considered one of the “large” RPG companies, is it? I mean, before this month.

So, yeah. It’s one hell of an investment.  But how does it break down exactly?

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Apr 052010
 

I’m a big fan of what Daniel Solis is doing over on the Happy Birthday Robot kickstarter (and for that matter what David Hill is doing at Maschine Zeit even if the game pitch isn’t necessarily for me).

But as Chris and I covered somewhat on the latest That’s How We Roll, they are also a little disappointing because they didn’t aim high enough with those funding goals. (I pick on these guys here because I like them and I like what they’re doing.)

There’s this funny thing about goals, especially goals that you enlist friends (and followers and family) to help you hit. Funny things, actually.

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