Magic and the Canadian Dollar

 

Exchange Rate

After serious consideration Black Knight Games has decided that the time has come to increase our price on Magic: the Gathering sealed product.  This is not a decision that comes lightly, and is one that we put off for as long as possible – probably too long.  While this certainly will garner some moans, and some initial anger in some of our loyal customers it is a decision that we have to make, and one that we suspect other sellers will make in the near future.  Our goal is to make this transition as transparent as possible, and to answer any questions that we can.  Hopefully by being upfront and honest, you will be able to understand the need for this adjustment.

Our price for boosters packs will be changing to $4.99, which is slightly less than the Canadian equivalent of US MSRP of $3.99.  We’re maintaining the same percentage discount on booster boxes, which makes the new price of booster boxes $149.99.

Why?

There have been two major changes over the past year when it comes to selling Magic: the Gathering in Canada.  The first is that Wizards of the Coast raised prices to retailers by reducing the margin a bit at the end of 2014.  The second, and far more important change is that the Canadian dollar has plummeted compared to the US dollar (the currency that Magic is sold in).  These two changes have been very difficult for Canadian retailers of Magic: the Gathering as our profit margin has shrunk considerably.  Magic sealed product is now by far the lowest profit-margin range that we sell at Black Knight Games, which is problematic considering it’s also our number one selling range.

This new price still puts our prices slightly lower than buying from a US source.  $3.99 US x Todays Exchange Rate (1.28) = $5.11

When?

This change will go into effect on Friday, March 27th – the release date of the new set.  Any purchases or pre-orders made before then, including for boxes of the new set, will be made at the current price.  So if you are planning on buying a box of Dragons of Tarkir it would be a great idea to pre-order it before release day!  The price of the Pre-Release weekend will not be affected at all.

The Transition

We realize that a change like this to the core price of Magic will be difficult for some, and we are certainly not thrilled about it either.  For a time we recognize that some other stores will have lower prices than we will on booster packs and boxes.  Our business model has never been to simply have the lowest prices, but to offer the best gaming experience we can.  We put a lot of time and money into running great events and creating a comfortable and inviting space.  We certainly don’t begrudge any of our customers for looking out for their wallets and buying where they wish, but we do thank our customers for standing by us and helping us continue to offer the best in-store experience we can.

For the time being we will not change the way we run events – at all.  This includes the entry fee and the prize structure.  Please note that since we are going to continue using the old pricing for entry fees and prizes, that trade in prize-packs will still be valued at $4.  In time we will examine our events to figure out how to them fit into the new price structure, and we would value customer feedback.

What if the Canadian Dollar Bounces Back?

We are not simply looking for an excuse to raise prices.  Our goal is, and always will be, to offer our customers great product at a fair price with a margin that keeps us in business.  If the Canadian dollar bounces back, or if other factors make buying Magic more affordable, we will gladly revisit our pricing.

Feedback

It has taken us quite some time to reluctantly do what needs to be done.  We recognize that we are one of the first stores to make this transition, and that makes us a bit of a target for some.  We know there will be those that have questions, concerns, and thoughts about all of this.  The best course of action is to take part in a civil conversation with everyone that has interest in discussing things.  We will gladly discuss this on Facebook, in person, or by email with those interested.  As I said before, our goal is to be honest and transparent.

Email us, or call us and ask for Jay or Tim at 905-296-3401

Thank you for your understanding, and we look forward to hearing from you and taking any feedback you wish to give.

Sincerely,

Jay Mason-Grant
Black Knight Games

 

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