I refer everyone to my post summarizing Andy's talk at the March, 2006 West Coaster (posted 3/6/06), "If someone becomes interested in collecting toy soldiers because of K&C's (San Antonio) store, they could be informed of the nearest K&C dealer to their home. In the future, Andy thinks K&C San Antonio will become the central distribution point for the U.S. market, reducing the present shipping cost to dealers." Andy stated the primary purpose of the San Antonio store was to attract Alamo tourists who might not know about toy soldiers. If they come into the San Antonio store, they would be given a list of K&C dealers.
The brevity of my 3/6/06 summary is misleading. The San Antonio location is not a distribution center that sells direct to collectors. It is a retail store that sells direct to collectors. In the future, K&C may rent separate warehouse space in San Antonio and ship its products there for U.S. distribution. Part of this shipping cost would probably be passed on to U.S. dealers in the form of a lower dealer discount, with dealers paying for shipping from San Antonio. Currently, dealers pay for Fed Ex shipping from China or Hong Kong (FOB China for those of you familar with shipping). Shipping costs would be lower if K&C first shipped its products in ocean containers to San Antonio, then distributed them to U.S. dealers. If this can keep down costs, then K&C can absorb more of the steadily increasing labor and material costs. Of course, I do not speak for Andy or K&C, and this is based on my interpretation of Andy's talk and my understanding of some of the logistics involved.... However I can't think of another company in the toy industry that has a distribution centre which sells direct to customers, under the necks of their dealers...
I don't think it's the distribution that has the dealers concerned and I don't think it's the fact that King and Country is both a manufacturer and a dealer in United States, it's the fact that they now have a presence in the United States as a dealer with a web site. That's the cause for concern.
Remember all that a rising tide lifts all ships!
Just a few observations. Not all collectors buy K and C exclusively so that means they will continue to support dealers who stock a broad range. The USA is quite a big place so a single shop in Texas cannot be the end of the world. It is like when I meet people overseas who say to me "So you are from Africa, Do you know so and so he lives in Nairobi."
The more bricks and mortar shops the better.
Not all toy soldier collectors live in the US let alone Texas.
Regards
Damian
Gentle Friends,
I find this discussion to be very interesting. I think most dealers have little about which to be alarmed. I, for one, will continue to purchase my figures from those dealers with whom I have an existing relationship. "My dealers" have always given me the best of service and have extented very warm and personal friendship to me. I will remain loyal to them and I will continue to purchase from them. I have no doubt that Andy will do a brisk business in San Antonio, but I cannot believe that large numbers of collectors will abandon the dealers who have worked so hard to please them. I see no incentive for me to suddenly begin purchasing directly from Andy just because Andy owns a specific store.
I also want to add that, as I have said many times, I do not believe that King and Country is the "be all and end all" of toy soldiering. Andy only handles his own products and many of us collect other products besides his. In addition to K&C figures, I collect Britains, Beau Geste, William Hocker, Tedtoy, museum quality figures, Monarch Regalia, etc. I will continue to purchase these other products from "my dealers" and, while I am doing so, I will continue to purchase K&C products from them as well.
Warmest personal regards,
Pat