**everyone says "Hi Ryan!"**
I continue to read ongoing threads and discussions of US and European release dates and availability. In those topics, many assumptions are stated to why US and Europe differ in both release date and quantity available. I've worked for almost 20 years in the consumer retail and technology product industry; feel free to assume anything for geeky store sales person to clueless marketing guy to strategy dork. Anyways, I wanted to post the most common business reason why the gap between US and Europe distribution exists.
Why Not (most cases):
First, let's get the "Not" reason out of the way. It is NOT because Skylanders/Toys for Bob/Activision-Blizzard is an US based company and is giving privileges to its home country; sentimental business decisions are seldom good ones
![smilie](http://forum.darkspyro.net/images/smile.png)
Why (most cases):
As with most decisions in business, it is simply an economical decision with the US presenting a better economic return per unit based on cost to overall sales:
(The Fixed Cost of product shipping from Asia + Cost of doing business in a Country)
/
Total Unit Sales per Country
=
Cost per Unit
Why does this have such an effect on European Countries? I'm glad asked!!! It is because every country (the US, Canada, and every single European country) has an individual cost of doing business including but not limited to:
- Packaging and Documentation
- Retailer Negotiations (Merchants for Retailer X in Germany is often separate (or different) than Retailer X (or Y) in France) resulting in individual country:
-- Product Cost and Support - Legal Requirements
-- Retailer and Country Requirements in Merchandising and Advertising
-- Shipping, Receiving, and Returns
This means that every Skylanders product sold in any given European Country makes less money for Activision-Blizzard then those sold in the US. Combine this with Skylanders' Demand being greater than Skylanders' Supply, and you end up with two choices in business:
1) Make less money by shipping US and Europe Countries quantities proportionate amounts based on estimated units sale percentages
2) Make more money by shipping disproportional amounts to US.
I know this doesn't make the people in Germany, UK, France, or any part of Europe happy, but it is a proper business decision. However, the most important thing to take away from this economic's session is this:
US business does not dislike Europe! We love Europe and all of you in Europe
![smilie](http://forum.darkspyro.net/images/smile.png)
![smilie](http://forum.darkspyro.net/images/smile.png)