DC cutting ties with Diamond

[ElectricPeterTork]

Originally Posted by chip75

Aren't Diamond responsible for the system where the store-owners are unable to return unsold comics? that hurts the industry more than anything else, it's been a mess for years, but as sales fall and shops close, those in business don't need stock they can't sell and can't return.

No, that's the entire purpose of the direct market, and that non-returnability is what saved comics, actually. It's the whole reason they still exist.

By the late-70s, newsstands no longer wanted to deal with comics. Too many, too cheap, not enough profit. And the publishers were massively overprinting them. For a hundred thousand sold, they'd print something like 400,000. 300,000 would be returned, the publishers would eat the cost. Or, newssstands and distributors would mark them as destroyed and resell them.

The people they resold them to became the first comic dealers, and the basis of the direct market. The dealers would buy the books directly from the publishers (through a distributor) for about a 50% discount, but they would be non-returnable. That way, the publishers didn't have to eat the cost of returns, and the dealers could sell the back-issues. Also, the companies could print fewer copies since they were getting accurate order numbers for the direct market books. Everyone was happy.

Diamond didn't become a distributor until quite a few years into the direct market, but they became the only distributor left after the 90s speculator bust and Heroes World fiasco. And that's where we've been at since 1997.

[chip75]

Originally Posted by ElectricPeterTork

No, that's the entire purpose of the direct market, and that non-returnability is what saved comics, actually. It's the whole reason they still exist.

That may have helped stores come into existence, but it's pushing them to extinction now. They're left with stock they can't sell and can't return. When books are selling in the thousands and the continual first issue with dozens of variant covers as a way to prop up sales (before they take nosedives in the charts) store owners need a way to return stock they can't sell and customers have no interest in.

Some of the stores that are selling only back issues with no new stock were doing quite well before the current crisis.

[mwynn]

Originally Posted by chip75

That may have helped stores come into existence, but it's pushing them to extinction now. They're left with stock they can't sell and can't return. When books are selling in the thousands and the continual first issue with dozens of variant covers as a way to prop up sales (before they take nosedives in the charts) store owners need a way to return stock they can't sell and customers have no interest in.

Some of the stores that are selling only back issues with no new stock were doing quite well before the current crisis.

From the groups I am in the stores are starting to move stock between them. So say I over ordered and issue 2 of a hot book, and I sold 50% of that stock. I can talk to other stores to either purchase my extra stock or work up a trade. That could be an option for some stores. I see the two new distros trying a 30 day return policy. Since one of them is Midtown they are going to open their back issues up for ordering. Some stores have decided they do not want to work with either distro, so will be dropping DC books.

Diamond needs to step their game up. They are in trouble once the new distros start working with non DC books.

[mwynn]

UCS will no longer be distributing DC Comics as of January 1st, 2021.

In April, UCS Comic Distributors partnered with DC at a time when comic book distribution was on pause and the supply chain disrupted as a result of the safer-at-home orders that were put in place. We are very proud of the role we played in transitioning DC during this unprecedented time.

The transition is now complete, and UCS is passing the baton to Lunar Distribution, who will handle all of DC Comics’ retail accounts as of January 1st. Our relationship with DC Comics will continue on all other fronts.

UCS will be transferring records of all unfilled FOC orders for items shipping January 2021 and beyond to Lunar to allow for a smooth transition for all accounts. Lunar will contact accounts over the next several weeks to confirm and finalize their information. Also please note, UCS will not be soliciting books as part of the November 2020 DC Connect catalogue.

Keep in mind:
UCS is not closing. We will be offering other exciting items that stores can use!
12/29/20 is last street date that we will deliver.
Any inquiries regarding sign-ups, distribution and/or shipping contact: service@lunardistribution.com

If you have questions in regards to DC policies or general inquiries, please email: ComicShopQuestions@dcentertainment.com

It’s been a pleasure to get to know all of the retailers, and we look forward to continuing this wonderful relationship.

Thank you,
UCS

[Jpapp25]

Well this Distributor Wars part II sure seemed to have cleared up quickly.

All joking aside, while Midtown had a solid mail order business DCBS always seemed like they were much more setup for large scale order taking and distribution. I'd be interested to see if DC tried to get either to sell their books exclusively.

[mwynn]

Originally Posted by Jpapp25

Well this Distributor Wars part II sure seemed to have cleared up quickly.

All joking aside, while Midtown had a solid mail order business DCBS always seemed like they were much more setup for large scale order taking and distribution. I'd be interested to see if DC tried to get either to sell their books exclusively.

This seems like another cost cutting move. It lines right up with their event in January. DC Future State.

[mwynn]

AT&T is ripping DC to pieces. They no longer have a convention manage, and more cuts.

[Jpapp25]

So is it possible they will do something drastic like switch to omnibus/trade for physical copies and digital for monthlies? It seems like things have been going from bad to worse and covid just kind of accelerated the industries issues.

[mwynn]

Originally Posted by Jpapp25

So is it possible they will do something drastic like switch to omnibus/trade for physical copies and digital for monthlies? It seems like things have been going from bad to worse and covid just kind of accelerated the industries issues.

Yes, or even only publish titles that have direct ties to movies. From what I have heard their editorial department is a mess. Jim Lee is probably on his way out, which would be a shame because they own all of his characters.