Every Wednesday, comic book buyers flock to their local comic book store for “New Comic Day.” The days of children buying 12 to 30 cent paperback stories are long gone. What we have now is a multi-stage dynamic that includes movies, dvds, affiliated merchandise (action figures/posters/t-shirts), graphic novels and more. Collectibles are “In” in a big way. Many subscribers buy 30 to 40 titles per month with an average ranging between 10 and 20. Typical titles retail for $3.99.
Zaldiva combines a brick and mortar location in Ft. Lauderdale, Florida with an e-commerce website and portal which operates in conjunction with a series of ancillary websites and online auctions. This system is the foundation of the company’s business and marketing plan as well as its vision. This tactic also effectively spreads the risk associated with being locked into a single stationary location. The company is currently searching for more stores to acquire that further spread the company’s footprint in the industry. Zaldiva focuses its product orientation on the comics and collectibles genre of the specialty retail industry. This not only plays to the management’s expertise, but allows the company to operate in an economic subset that is recession averse and not subject to seasonal or market trends. Products sold range from comic books, statues and figurines, DVDs, posters, dolls, action figures, to T-shirts, die cast vehicles and automobiles.
Bigger is better. At this point, Zaldiva enjoys 35-55% profit margins on comic books and graphic novels alone. But, major publishers such as DC and Marvel Comics increase forward discounts once a retail organization has two or more locations. This means that the larger the distribution network (the more sales point locations), the greater the profits and other benefits that will accrue to Zaldiva. Anticipating ten to fifteen of these smaller acquisitions can net the company $.15 per share on one product line. The company has identified three larger ($1-2 million in revenues) targets, which, simply with economies of scale, should equal or exceed the net per share enhancements of the smaller purchases. With additional locations, the increase in forward discounts themselves, at full capacity can drop $.01 per share just on the main site.
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