"The German Retail Container has arrived AND it's listed online to buy!" Yes, it has and it is. To all German OS3 and OS4 Backers - we're extremely sad that it happened this way and you all deserve an apology. From all of us at Petersen Games, we are incredibly sad and sorry to break faith in this manner.
We worked incredibly closely with Pegasus to try and make it so they handled 100% of our German shipment (Retail and Backers) but it just didn't pencil for them. We were in the middle of arranging freight when we heard that they couldn't deliver the Backer orders and had to make a call. It was our call and it really sucked to make it.
If you're curious as to why this happened, read on. If not, this is the end of the update. Links and graphic below!
The situation in Germany is both a forced and unforced error and ultimately comes down to different business pressures. Here are some of the realities that have forced this situation:
Business Reality #1: Warehouse space costs money. Companies pay for warehouse space no matter where the product sits. This single reality creates a rock and a hard place - We have to get stuff out of China, Pegasus has to get it out of their warehouse.
Business Reality #2: SKU Management and Shelf Space are huge efforts. Companies need to store, maintain, and dedicate shelf space to every product their store. They also need to build SKUs in to their inventory management systems. Then make sure it manages correctly across physical and digital stores. This is a lot of work and only a portion of the Backer SKUs overlapped with Pegasus' order, which would have created a ton of extra work for them to do in order to handle backer delivery.
Business Reality #3: VAT and Freight Prices. Taxes makes B2B pricing WAY more difficult, especially when one business is fulfilling the orders that another business made (which is the model at work in this example).
Business Reality #4: The Holidays. This pressure compounds everything above. Demand increases and retailers are always playing the inventory balacing game. Product that has already been paid for but cannot be sold is death in the Holidays.
Business Reality #5: Businesses need revenue. I don't say this in a negative way, revenue/profits are a measurement of a thriving business that is providing value to the market. Asking Pegasus to NOT sell the product they have to preference customers that are NOT theirs...just doesn't make sense in a vacuum and in their context.
As a great economist has said, "There are no solutions, only trade offs." We had a handshake deal in place to safe gaurd our backers, but the realities of business resulted in a disappointing outcome. We made some decisions, took a risk, did what we could to safeguard the backers....but it didn't go our way this time. Which is why each of our German Backers DESERVE the apology above.
We are working like crazy to get everything to the port and on boats! Already looking forward to reporting progress next week!