mbanu wrote:Ah, wait, scratch that -- 1982 is the first Marukai Wholesale Mart in Gardena, California, while 1987 is a later one in Honolulu. (^_^;)
So I guess we have a few pointers towards how the experiment ended, at least -- KIKU was bought out in 1979 by a group of investors less interested in Japanese programming, Joanne Ninomiya leaves in 1981 to found her own translation and production company, and in 1982 Marukai Trading gets out of the wholesale business and re-focuses on retail in the face of rising prices due to the Japanese miracle economy. (^_^)
1982, the Dollar/Yen exchange rate was still to the positive in selling Japanese product to America. It would be 1985 when things first hit the speedbump.
Also, you're using words in a rather casual way that can be misunderstood without proper context. From the text presented, it's obvious that in order to survive the stronger Yen and still be able to move merchandise Maruki Trading stopped (or greatly reduced) being a distributor and shifted their business plan into being a 'club warehouse' company, where one buys a membership to shop. This would have allowed the company to sell Japanese products at a price that was somewhat reasonable but allow them to keep a set profit margin.
I must explain. Try to explain. It's complicated. There seems to have been an agreement among various export companies (Marukai Trading, Nippon Shuppan Hanbai K.K. dba Books Nippan, Uchino International dba Pony Toy-Go-Round and I'm sure others, that they would figure their pricing at retail at their stores based on a fixed standard... cripes, this gets into the whole business of how Retail in Japan works and that's messy as can be. How do I... OK, let's try this.
These companies mentioned, all of them are 'upper tier' distributors. They're the companies that deal direct (or at worse, one level down) with the makers, the manufactures, the publishers. OK? From these companies product trickles down to regional distributors, the regional distributors then sell to the prefectual distributors and from there it either goes to the stores or one more step to what could be called 'neighborhood' resellers to finally get to the mom and pop shop on the corner. Every step of the way somebody has to get paid. Got that?
American retail tends to be much more streamlined. If you have the money, that is if you buy enough product and sell it, anyone can buy direct from a manufacturer. Generally speaking most retailers buy from a wholeseller that buys direct from makers. So, on the whole, your store in the USA has only one step between themselves and the maker. That means lower wholesale costs and lower mark-up on the final product.
Now. It should be obvious this is a key factor in the price of Japanese goods. Bear with me.
Every store marks the price of their goods based on how much they paid and, really, what the market can bear. You could buy anything and double the price you paid and if it sells, that's what people are willing to pay. If it doesn't sell that's now eating at your profit and you need to sell more or SOMETHING to try and recoup that amount you paid. Failure to figure that out is how businesses die.
So there are generally accepted markups. One good rule of thumb is, on the whole, something you buy in a store cost the store half of what you're paying. Not always, WAY not always in some cases, but if you walk into Toys R Us and buy a modern action figure for $19.99, it probably cost them about $10. I'm not going to go deep dive into discussing return allowances and all the shenanigans involving rolling credit and returning merchandise.
Square? Solid? Still reading? Good.
Japan has fixed prices at retail for many things. You see it all the time on toys, books, CDs, candy. That means a retailer in Japan isn't going to be able to take that brand new CD (marked 3,000 Yen tax in and I'm not even going to touch taxes here) and sell it for 2,000 Yen because it's HOT HOT HOT and he wants to blow it out the door and he makes it up from the publisher in credit, nor is he going to be able to charge 6,000 Yen for a new, unopened CD because it's, ready? HOT HOT HOT and he feels he can really cash in. Insert crestfallen faces of American comic book shop owners circa the mid '80s. Prices are controlled in Japan. Used, discontinued items is its own thing.
So let's examine that. Retail priced at 3,000 Yen. The shop owner expects to make some profit (cost plus) from the sale of that CD, the perfectual 'jobber' that sold the CD to the store expected to make money from that, the regional distro expected to make some money from that CD, the top tier distributor expected to make money on that CD and of course the publisher. Now, I do NOT expect each step in the distro chain made a 50% markup, those places can live on like a 10% cut of the take. The math gets messy but what I assume, and it seems to hold, the maker starts the chain with their wholesale price being likely 50% of the marked price. (which, with CDs, means Pony/Canyon sells their CDs to the distro chain at the price a CD RETAILS for in the US. Keep that in mind)
Top tier distributors get the best discount.
Whew, that's a lot to digest. I'm gonna pause and come back with more later
