I just watched @smpratte 's new video about GTS manipulating the market. I do not have a deep understanding of business side of selling Pokemon cards, but if what GTS is doing is so harmful to the market, why isnt The Pokemon Company doing something about it? It seems to me, if someone was hurting their industry, they would want to fix the problem.
TPC is all about the dollars, and GTS is selling hundreds of pallets of product. I can’t see them getting angry at someone making them bank even if it’s hurting the market. It’s short sighted, but their spreadsheets are looking good, and if they do something about GTS, the spreadsheets won’t look as good.
Do you think TPC is aware of what is happening?
sportsandmore are negatively impacting game stores carrying pokemon, people can literally buy boxes cheaper than brick and mortar stores get their boxes from distribution. People’s livelihood are being affected by this, I would say TPC is aware as I’m sure store owners as well as the other distributors have complained to reps about GTS. Whether TPC does anything about it, who knows, they’re not directly affected so they might not since all boxes come from them … more people buying boxes = more money.
Can someone tell a noob like me what the hell GTS stands for? Thank you.
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Thank you. So they’re the people responsible for the sub $80 boxes?
I wonder if companies like Nintendo(TPC) and even WOTC(MTG) can enforce some kind of floor pricing at release.
Is GTS the biggest distributor out there? I’m sure if all other distributors grouped together and complained directly to TPC, they would at least take the time to listen. Pierce is right that it’s not directly affecting their bottom line, but it’s still a very scummy way of doing business.
you da real mvp, asking the questions we all to scared to ask so we dont look silly lololol
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Thought this was about the Global Trade System in the main-series games…I need to catch up on Scott’s vids!
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I’m also a noob (I’m sorry). Could someone please help me understand exactly what GTS is doing that is wrong?
Edit: I have watched the video and could not find a clear answer to my question (I’m sorry). I did hear an example, that GTS provided more cases only on a second request from Smpratte. But I don’t understand how that is wrong (again, sorry).
I’m also puzzled by how creating “artificial scarcity” (a term in the video) could drive the prices of boxes down (what people seem to be criticizing GTS for, in the video and in this thread). Isn’t that the opposite of “supply and demand?”
Again, I’m sorry if I am ignorant and not educated in economics.
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Going through reading the comments and found this…
“Skip wearing a sonic shirt got me harddd arrggghhh”
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You should look through the comments on his other videos, there are plenty of weirdos 
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I’m not 100% (correct me if wrong); but this is my understanding…
Here is an overly simplified explantation into distribution - just so that you understand the overall concept. TPC is the company that creates and produces new product (we won’t get into production companies at all). They’re in the “creation business” not the “distribution business”; so they “hire-out” distributors (massive companies that literally distribute product). These distributors can be looked-at as a middle-man - they work directly with TPC and Retailers. The distributors purchase product from TPC and then wholesale that product to Retailers - who in-turn re-sell that same product for retail-prices.
Now, in a perfect world, the wholesale-price would be the same whether you purchase 100 Cases or 1 Case. However, that’s really not realistic - companies like Wal-Mart and Target are getting product cheaper than your mom-and-pop card shops. In the past, this difference was minimal (we’re talking a few dollars / box less for those major companies). This led to a stable-market - everyone was paying the same amount (roughly) and trying to re-sell for the same amount (again, roughly). This is the normal trend for nearly everything within the collectables-market - and it helps create a stable / healthy market!
Now, let’s take a look at what is going-on today within the market… TPC is still doing their job - and still making the same amount from their Distributors (fat, dumb, and happy). However, the Distributors are “playing” with the market. They’re partnering with select Retailers and offering them product for MUCH CHEAPER than other Retailers - it’s to the point where Retailers are paying the same price (if not more) than what these select Retailers are selling the product for on the retail market. Obviously, this is a major problem for those other Retailers.
That’s the gist of what’s happening right now - hope that helps!
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they sell to distributors, make their money and thats it. They arent into the secondary market so why would they intervene.
My 2 satoshis are that local mom and pop stores or even large scale card shops who are unable to compete with online retailers may abandon pokemon products in their store altogether. That would drive down local player participation, which would accumulate over time as more and more shops drop pokemon or close shop. A few years down the road the player base could dramatically shrink in the US as current players age and younger players play less of the tcg or become competitive. A lot of competitors start and develop their skills by playing in local shops, but the scale at which that happens will be much less if the shops don’t carry pokemon products anymore.
If the player base decreases, then Pokemon’s main source of revenue decreases because we know collector’s as a whole aren’t putting as much money into new product.
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This is the classic short term gain for a long term risk. Luckily the player base keeps expanding, largely due to prize payouts. That is majority of the modern product market.
However if the smaller venues cannot compete and stop selling product, that is a huge systemic risk. The pattern @teraz mentioned is what grows the hobby. This is why stable pricing is important; it allows businesses everywhere to survive. Perhaps the online tcg negates a bit of the storefront experience, but you still need the physical locations for official play.
This is why the unstable pricing is bad for everyone. Basically all businesses besides the handful who are undercutting everyone have been taken advantage by their distributors. English Distribution has done absolutely nothing to remedy or even acknowledge the problem.
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Yea I get that! TPC dont seem to mind as they make their money from sellign to Distributors…it isnt a good way to prolong the hobby and standard play. However that seems to be what they care about at the moment…pump and dump (giggety) product, make money and let whatever happens…happen 
WOTC allowing WPN stores to sell dominaria boxes a week early at prerelease, Rudy reckons it’s because of sportsandmore.
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