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If you’re in the Board Games business then you need reliable and cost-effective manufacturing. By far the largest cost you have is the manufacturing cost - generally speaking Board Game manufacturing costs account for around 25-30% of a company’s revenues. So, if you are looking for ways to make a Games company more profitable it logically makes sense to look at the area where spending is highest.


Pricing isn’t everything though, even though it is usually the first concern. If you can’t make your games to meet demand and you lose sales, then your company loses far more than it gains by shaving a couple of points off manufacturing spend.


Nevertheless though, there are several tried and tested ways to reduce manufacturing costs:


1.       Get quotes from multiple suppliers – this is evidently an effective strategy because so many companies use it. With this approach you quote every new Game with a couple of factories in order to ensure you get competitive costing. The drawback with this approach though is that it can be overdone. In the end while there are quite a few Board Games factories out there, Games manufacturing is a finite capability. So, if you routinely make 3 or 4 factories quote for your products and deliver very little business to any of them you will find that they will lose interest in quoting for you and before long you will have nowhere to manufacture your games. Beware of taking a transactional approach, an effective and sustainable approach to sourcing requires relationship building with suppliers and an appreciation that they are also in business to make money. We would normally suggest Board Games companies with multiple new products launching each year focus on building two strong factory partnerships. This allows for the benefits of good working relationships, allows for some supply chain diversification and offers two sources for quoting to ensure pricing is competitive.

 

2.       Work in partnership with the factory on the product spec – there are normally some features of the product spec which are sacrosanct, but there are others where there is more leeway. One mistake we have observed over time is board games companies and their Sourcing Managers really screwing down a factory on pricing without asking the factory to challenge the spec. We have worked with many of the most respected Board Game factories in the business, and one opportunity we recommend our clients to take is to ask the factory to proactively challenge the spec and to find cost savings based on process, materials and overall specification. Clearly they would rather take this approach versus making less margin, and often their solutions are better anyway in terms of setup experience or gameplay experience.

 

3.       Use factories with established customer base – we would always be wary of an inexperienced factory. Why would you take the risk of working with a factory on their first few projects when they have yet to develop the expertise to ensure consistent quality & delivery standards? Maybe you could work with an inexperienced factory for a significant cost reduction but aside from this we would normally suggest it is prudent to review the existing customer base of a factory. The easiest way to find out who else the factory is supplying would be to ask them, most factories are happy to share the list of companies they supply, you can also check how good they are at protecting the details of their clients projects by probing and asking for more information, if they tell you everything they are doing with no respect for client confidentiality you can expect them to treat your confidential projects with the same approach!

 

4.       Review carry forward product pricing on an ongoing basis – when a company sells a product year after year, and where the pricing seems ok and is fairly stable i.e. not increasing all the time, it can be all too easy to leave things be. This though is often where the biggest cost savings can be made, by refining costings and spec on an ongoing basis. One project we worked on was for a long-established Board Game with some plastic components and plenty of cardboard items. Typically, this type of long-standing multi-component game can offer good opportunities for cost savings as technologies and cost barriers are broken down over time. When we reviewed the company product portfolio and the sales and profit of each product this particular Game stood out like a sore thumb due to good levels of recurring sales, but low profitability. By identifying the problem and getting the team at both the company and the factory thinking on how to rework the spec, the manufacturing processes and the materials we were able to deliver cost savings of more than $150,000 while also delivering a far better experience for gamers.

 

5.       Work with experienced 3rd parties to get better value and find more cost competitive sources with reliable delivery – in theory nobody wants a middle man, but often in the world of Sourcing middle men can actually save you money. The average Board Games company we have worked with (based on having worked with, consulted for and sold to more than 200 Board Game companies) typically has just one Sourcing Manager or sometimes a person with remit for sourcing and other functions. Presuming they are sourcing in the Far East, they may actually visit the factories once per year, sometimes even less than that. They tend to spend far more time on the process of ordering and shipping than they do on actually sourcing. By using 3rd parties you can often find better solutions and cost savings due to added resource, expertise and knowledge.

 

We run a Consultancy business helping board games companies to grow & be more profitable. We have saved our clients more than $10m on sourcing over the past decade. We work with the most reliable board game factories in the business with strong capabilities and competitive costings. For more information on our services (including Sourcing) please just click here: https://www.boardgamebiz.com/game-business-consultancy


Sign up now for our free BoardGameBiz newsletter offering insights, news and analysis of the business of Board Games. We’ll also send you a free copy of our book ’55 Features of Best Selling Board Games’ – just click here to sign up.

 


Technology was supposed to kill the Board Games business! The video games business came out of the periphery of the toy industry originally, and toy and game companies like Hasbro & Mattel made very committed (& costly) forays into this space looking back in time. The video game business is now worth many $billions in its own right. But video games did not kill off Board Games.

Then came smart phones and tablets which were supposed to kill off all home based non-digital leisure pursuits, and yet again the Board Game business continued far less spectacularly in the background.

For those of us who have been around a while in the Board Games industry there are two often heard comments from people not in the business:

1.       Is anyone still buying or playing Board Games today with all this technology, video on demand and digital gaming? Answer = a thoroughly emphatic yes!

2.       I read that Board Games are making a comeback this year, is that true? Answer = they never went away!

These two comments are nearly as recurring as Christmas time itself!

The more important question for those of us in the business is why is it that the Board Games business has not just survived but has thrived as technological revolutions abound? There are several strong factors driving and ensuring the longevity of the Board Games industry:

1.       Technology has enabled more effective marketing – the classic big company way to launch Board Games was with shipments to all retailers across the trade and with heavy marketing investment via TV advertising primarily. This launch model has been especially prevalent among toy companies who also sold board games, because that is the toy marketing business model. The most effective marketing tool over time to launch Board Games which last in the market though, especially for games with compelling gameplay, is to get people playing the game and recommending the game to friends and family. Technology, especially social media has been a huge positive driver for the board games business because this facilitates word of mouth, which has always been one of the top drivers of Board Games purchases.

 

2.       Human beings are social to their core, and there is no better social facilitator than a compelling Board Game – if anyone was in any doubt about the need for human beings to connect socially in a face to face, non-digital way, then the strong impact of covid-19 induced lockdowns around the world on mental health and happiness should be clear evidence that humans need to hang out with other humans! Sometimes though, even when we are with our nearest and dearest family and friends conversation can be a bit stilted or perhaps the ice just needs to be melted sometimes when drawing different people together! Aside perhaps from alcohol, there is no better way to bring down social inhibition and get people enjoying each other’s company than playing a good board game. So far, despite all the massive technological advancements, some illustrated cardboard and a few other physical components thrown together in a box have still not been bettered by technology. In time, technology may enhance the experience, but we have seen many attempts to utilise technology to enhance board game experiences and not many have stuck. So often companies chase whizzy technology over just delivering a compelling fun experience!

 

 

3.       Human beings need an antidote to technology addiction – aside from the need for social interaction, humankind is increasingly aware of screen time and tech addiction that is more impulsive and harder to resist than some narcotics! Therefore, one of the key modern drivers of Board Games purchases and board games playing is backlash to too much screen time.

In conclusion, this is an exciting time in the development of humankind. Technological advancements are accelerating, and in the not too distant future technology will deliver impact on our lives that most adults could not have imagined would occur during their lifetimes. And yet the humble board game continues to represent a growing global market with a richness and diversity of content offerings that is way beyond that of even a decade ago.

So, our prediction is twofold: a) Massive ongoing technological revolution and b) Continuing growth and health for the Board Games category.

 

We run a Consultancy business helping board games companies to grow. We have experience of most major board games markets around the world and our team has developed more than 200 board games including versions of classic games like Monopoly, Clue/do, Risk, Game of Life etc. For more information on our services (including our Export sales Consultancy) please just click here: https://www.boardgamebiz.com/index.php/board-game-business-consultancy-services/


Sign up now for our free BoardGameBiz newsletter offering insights, news and analysis of the business of Board Games. We’ll also send you a free copy of our book ’55 Features of Best Selling Board Games’ – just click here to sign up.

 

 


There are many different reasons why people play Board Games and various different parts of Board Games play which are enjoyed. People aren’t all the same, so they choose to play and choose what to play based on often quite different motives. Historically, the archetypal driver of Board Games play for families was the mother of the household who would want to use board games as a way to bring the family together. While much has changed in society in recent decades, this role of the matriarch of the household is still a strong driver of Board Games play. But even then, this is an over simplistic characterisation of what drives interest in playing board games. Everybody is different, and therefore they are motivated by a number of other factors, and their choices tend to be different based on the complexity of the human spirit and personality.


Having said all that, one fundamental perennial factor is that those games which deliver a pay off moment along with a rising climax seem to appeal to something universal in all of us. A classic example of a game driven by pay off and climax would be Jenga. Jenga is a game which tests dexterity and visual analysis of a structure, which doesn’t sound that exciting, but the climactic build up to the crescendo of the tower collapsing is a thoroughly compelling factor.


More broadly though, aside from just the sheer climax of a game like Jenga, many long-term classic games deliver a pure moment of someone winning and someone losing. There are many examples of board games that don’t have this of course, but those games which don’t have a big pay off tend to need a really strong and engaging theme or a really compelling and engaging social interaction built into the gameplay.


When you launch your next new Board Game though, perhaps you could view it from the lens of whether it is delivering a compelling build up to a major event or win for one or even better all of the players! If we go back to the example of Jenga, the moment the tower collapses is a fairly shocking event for the person who touched the tower last, but for everyone else it is a moment of relief and ‘schadenfreude’ (meaning taking pleasure in the humiliation or suffering of other people!). There are many ways in which board game mechanisms can deliver this type of climactic event, and that is a long-term proven driver of commercially successful Board Games.

 

We run a Consultancy business helping board games companies to grow. We have experience of most major board games markets around the world and our team has developed more than 200 board games including versions of classic games like Monopoly, Clue/do, Risk, Game of Life etc. For more information on our services (including our Export sales Consultancy) please just click here: https://www.boardgamebiz.com/index.php/board-game-business-consultancy-services/

 

Sign up now for our free BoardGameBiz newsletter offering insights, news and analysis of the business of Board Games. We’ll also send you a free copy of our book ’55 Features of Best Selling Board Games’ – just click here to sign up.

 

 

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