2016 in Review: 2 Steps Forward, 1 Step Back

2016 has been a mixed year for us, mostly with overall improvements in the business but with some setbacks as well.

Industry Consolidation & Restrictions

We continued to see industry consolidation including the purchase of F2Z by Asmodee creating a single company that now owns about 70% of all board game sales.  We’ve already seen (and expect to see) further increases in our base pricing (as it stands, Asmodee products direct from Asmodee Canada are marked at 40% discount with an exchange rate of 1.5!).  In addition, PSI is working to block the sale of games to online only stores, which has caused some issues for us (especially during Christmas) in terms of availability.

I expect we’ll see even more price increases / restrictions in the coming 6 months as Asmodee North America decides what they are going to do about Canada and other publishers follow suit in an attempt to reduce the price devaluation of their products online.  This has been a trend in the last few years and I don’t expect it to change.  It does however put us in an interesting position, which leads to…

Geek Product Explosion

Armored Batman Figurine!Most of you probably noticed the huge increase in geeky products including clothing, pop figurines, graphic novels and more.  I know it’s caused some difficulty in finding new board games, which is why we created a whole new category for listing new board games, but it’s not perfect as yet.  The goal is / has been to widen and diversify our categories such that we are not as dependent on board game sales.  We’ve now reached what I expect to be a stable inventory value / volume, and we’ll just be rotating product like our board games for the next year.

Backend & Stock Management

We mentioned last year we were looking at better ways to managing stock.  That meant trying to (again) implement an ERP system.  That did not go well, and after 6 months of struggling with the software, we put it to bed before the Christmas season started.  It was painful in many ways since it did make ordering simpler, but order processing more difficult.  Unfortunately, it also meant that our push towards using barcodes went haywire.

Our Location Move

We are extremely close to finalising our location move and once all the paperwork is complete, we’ll be able to provide further detail.  Expect a full blog post about this once it’s ready.  This has / will consume a ton of our time in Q4 2016 / Q1 2017 and probably Q2 2017.

Kickstarter Fulfillment

The other area of major growth for us has been Kickstarter Fulfillment.  From smaller projects like the 7th Seas RPGs to the giant Scythe fulfillment project, we’ve been busy with Kickstarter projects. It’s been fun to work with publishers directly and our current plans including actually going to GenCon & (potentially) BGGCon to meet more publishers in-person. It’s never (likely) going to be a huge business in Canada since our population is so small, but it does pay for the occasional nice meal :).  You, our regular online customers actually benefit on the backend as the more product we ship, the greater our ability to negotiate lower rates.  It’s probably something you might have noticed in mid-May as we dropped rates by over a $1 all across the board as we signed a new contract.

Conclusion

Overall, 2016 was a good year.  We saw overall decent growth in our main game sales with some good growth in our new product lines / areas of business.  With the big move, it’ll be time to consolidate further and trim product lines and selection to increase turn rates and provide a higher overall return from our investments.

Inventory – Breadth or Depth?

With the year coming to an end, I’ve been taking a look at our turn rates and our inventory.  Some parts of our inventory (clothing, media products) have been somewhat lackluster in terms of their turns. Others are running too hot (our general board game inventory probably could be beefed up, though I’m considering ‘splitting’ the category further to give us better insight).   It’s all the usual part of running a business, where you review your turns and sales and decide what to do.

The question that came to mind, more than anything else when dealing with our game inventory is whether we’d be better off increasing our breadth or depth.  It’s one thing to say ‘increase inventory dollars in board games’, and another to decide whether to do so by:

  • buying more unique products (increasing breadth)
  • buying more of our hot-sellers (increasing depth)

Increasing Breadth

When increasing breadth, we are looking to bring in more games than we have now.  This could be a return of older games that have been ‘cut’ due to low turn rates or by bringing in more new games, relaxing our normal restrictions on what we think should (or should not) be brought in to the store.

The advantage of bringing in older games is that many of those games were once good sellers.  While sales might have slowed, the demand was once there and because the games were once bought /are in people’s collections, there might be latent demand for these games (or slow trickling demand).

On the other hand, bringing in newer games allows sleeper hits to make their way into our portfolio.  Some of our better sellers have been games we’d never expect to sell and so, by bringing in more independent / small games, we might hit on more of these.  However, the disadvantage is that we might see a significant increase in games that we need to clearance.

In both cases though, we are able to have more stock and potentially increase the likelihood for customers to find eactly what they are looking for, particularly customers who have a specific idea of what they want.

Increasing Depth

pandemic_new_ed_Increasing depth on the other hand focuses on our ‘bestsellers’.  This is a hedge to ensure we never, ever run out of stock.  With many bestsellers already, we have started carrying 3 weeks worth of sales (i.e. if we expect to sell a copy a week, we’ll keep at least 3 copies on hand).  This is mostly due to the restock period for many games.

However, this doesn’t take into account stock-outs.  Scythe for example is currently out of stock again.  3 weeks of stock would (at our last week worth of sales when we had stock) be around 20 copies.  However, with the game out of stock right now, when we could have restocked it, perhaps we should have restocked at the 3 month level.

Of course, Scythe is rather unique (it is the hotness).  Let’s try Pandemic instead.  We sell around 4 copies of this game every week at least, so our regular stock level (or the stock level we try to keep) is 12 copies.  However, there are weeks when our ‘normal’ estimate is off, and like now, we are out of stock of this game (again!).  Perhaps instead of keeping 3 weeks, we should be at 2 months? That’d mean we’d have to stock 32 copies, but we’d never have to worry about the game running out of stock on a day-to-day basis and as importantly, stock-outs at the manufacturer level wouldn’t affect us either (well, for 3 months at least).

This tactic would give us the ability to continue to cater to our customers, but it does target more ‘new’ customers (i.e. customers looking for the ‘staples’ of our business like Pandemic, Dead of Winter, etc.).  It doesn’t cater to ‘alpha’ gamers who have a specific independent game that they really, really want.

It also has the disadvantage of being really expensive.  Even going from 3 weeks to 4 weeks for say our top 30 bestsellers (and assuming average cost of $30), we’re looking at $2700 ($30 x 30 SKUs x 3 copies a week) increase in capital cost.  If we decided to do 3 months, that’s a $27,000 increase in our inventory!

What Will We Do?

Well, firstly we’re going to pay all our Christmas bills off and ensure we are caught up on any bills.  After that, we’ll review to see how much additional funds we might have to put into play any of the above strategies.  It’s clear we need to increase our inventory value in our board game side and I’m personally leaning to a ‘mixed’ option, with a slightly heavier focus on increasing depth.  If we can shift some funds from our slower-selling categories, we probably will do that too.

Tarred with the same brush (Distribution Issues)

tar_brushA day after we did our post about distribution challenges in the gaming industry, we receive news that PSI has now informed their US distributors not to sell to online only physical stores.  If you don’t know, PSI does the distribution for nearly 30% of the industry (most everyone who isn’t gobbled up by Asmodee like Steve Jackson Games, Arcane Wonders, Catalyst Games, Stronghold Games, Indie Boards & Cards and more).  This is the same day that a post on Reddit titled “My local game store smells so bad that I don’t want to go in” hits 852 upvotes and generates a ton of conversations.

PSI (potentially at the pushing of it’s publishers, potentially by themselves) decided that game stores that reek so bad that potential customers refuse to go in are better ambassadors for the game trade than we are.

Hyperbolic much? Maybe, but since we seem to be tarred with the same brush, why don’t I use it on all B&M stores? No fair, but then who is being fair or reasonable here anyway?

Let’s be clear – there is an issue in the industry where board game prices in particular have hit a point where many B&M stores are reducing or even removing their support of the category beyond fast-selling staples.  There are a lot of reasons bandied around but the reasons that get spoken about are:

  • Alpha gamers picking up the ‘hottest new games’ from Kickstarter releases direct
  • Online discounts on average at 30-40% off MSRP.
  • Mass market businesses poaching gateway gamers from B&M stores (who now can’t / don’t have the chance to convert these customers like they used to).

Here’s the thing.  If you look at the above issues, 2 of 3 of those problems are created / supported by publishers because it works very well for them.  Kickstarter allows them to launch more games with less capital and make more money.  Mass Market sales allows them to generate more sales with a much, much bigger footprint than probably the entire B&M store industry.

That means online discounts (and online discounters) are the only people they will go after to look like they are doing something.   There are numerous policies coming into play to stop this.  In the US, ANA decided to just restrict sales to a few online stores.  In Canada, some have gone with a MAP program (even if it is technically illegal).

PSI’s strategy is to restrict it to B&M stores only.  However, that’s not going to work.  Most of the large players in the online world are B&M and online, so it wouldn’t stop them from purchasing.  Worst, half (at least!) of the problems come direct from B&M stores who find themselves with too much product and are just dumping the product.  Solutions like this are more PR than actual solutions, intended to appease than fix the real issues.  Mostly because the real issues are either extremely expensive to fix or because, perhaps, they aren’t fixable.

Distribution Challenges for the Gaming Industry in 2016

My initial title for this post was ‘market failures’ but I realised that that wasn’t entirely accurate, even if it is a better sounding title.  What I wanted to talk about was the increasing fragmentation of the market and the complicating of the supply chain that we are seeing.

Vector illustration of red exclusive stamp on white background
Vector illustration of red exclusive stamp on white background

Exclusive Distribution & Monopolies

Exclusive distribution agreements aren’t new, I’ve written about them previously.  Right now, the vast majority of our products (a good 70% of game sales I’d say) are under exclusive distribution agreements.  Our biggest problem with exclusive agreements is the fact that it can be often difficult to locate who has the exclusive agreement in a country and just as importantly, be able to purchase the product in sufficient quantity to make it worthwhile.  A few great examples?

  • Qwirkle is the only game that sells for us from their distributor in Canada.
  • Celestia and Haru Ichiban are carried by Le Valet who at least have some other ‘good’ games, albeit at a higher markup

As many of you know, shipping in Canada is expensive.  Most places cost us at least $30-40 to ship a parcel at any ‘size’, sometimes much more.  Excluding any minimum’s that a publisher might have (and some sell by case quantities only!), that means to keep shipping cost at only 5% of an order, we’d need to put a $600 order with the publisher.  However, many of these publishers have maybe 5 to 6 items (sometimes even less!) which would sell in our business.  When this happens, we often end up deciding to either / or /and :

  • restock very, very slowly
  • not carry the product / product line
  • increase the price of the product to save on our margin

Geographic Boundaries

Geographic boundary restrictions (essentially stopping us from purchasing from the USA) is another extremely frustrating restriction.  It used to be that we could purchase almost our entire catalog from the US.  Over the years, it’s now slipped to about 30% of the gaming catalog.  This can often lead to some extremely frustrating instances such as:

  • Monikers which signed an exclusive agreement with On the Right Track. Who don’t carry the expansion but we can’t purchase the expansion as the publisher can’t sell it to us due to geographic restrictions.
  • Forbidden Island whose US MSRP is $19.  The lowest Canadian price we can get from a wholesaler? CAD$18.

Non-Gaming Distributors

This one amuses me and frustrates me.  For a while, CV was only purchasable from Pierre Belvedere as they had an exclsusive agreement for it in Canada.  Their main business? Selling calendars from what I recall and various kitchen ware items.  They were a distributor, but there was literally nothing else that was worth buying from them.

We recently had a request from Raincoast Books to buy Osprey Games from them. At least, in this case, they are in Vancouver so we’d save on shipping; but really? Again, see above about hitting minimums and shipping costs for why we generally try to stay away from this.  When a game ends up with a non-gaming distributor, it often becomes dead to us because there’s no way to hit a minimum threshold.

Direct from Publisher

I don’t categorise direct from publisher sales as onerous just by existing, mostly because in many cases, these publishers might not have a choice.  Unable to get into ‘normal’ distribution, they’ve decided to sell direct to retailers who are interested.  What I do find frustrating are publishers who don’t understand the normal discount thresholds for sales.  A recent trend has been for publishers to offer discounts of 25-30% off MSRP and charge for shipping.  At those levels, not surprisingly, most retailers would not bother carrying these products.  If a game is selling at $30, then a 30% discount indicates a gross profit of $9. Add in shipping cost, our gateway processing fees and the time taken to handle the order and we barely make anything on such an order.  No surprise that in those cases, we often decide to not carry those products at all.

The current discount rates seem to vary between 45-50% with some particularly aggressive groups as low as 40%.  Not surprisingly, most retailers don’t even both with those at 40% so if you are offering discount rates at 30%, expect that we won’t be purchasing from you at all unless you hold an extremely, extremely in-demand game (see Cards Against Humanity).

Direct to Consumer Sales

Firstly, let’s be clear – a publisher has the right to decide who to sell to or not.  If a publisher decides to go direct to consumer (via Amazon and their own sites) or Kickstarter only, that’s their choice.  It’s not our area to decide their business model.  In fact, when you have a product that is in such demand, it makes sense to keep more of the profit for yourselves.

However, there are numerous publishers who don’t just sell direct to consumers exclusively, they also sell it at a discount from their own MSRP.  Tasty Minstrel Games is an example of a publisher whose games we have had to cut back on significantly due to regular periods of them running regular sales on their own products. Kickstarter’s that roll previous games into the current promotion fall into the same annoyance area if they provide a discount on those games.  If they don’t, it’s not a huge problem normally.

Big Box Store Exclusives

I doubt I have to expand on this much.  The major issue about such exclusives is the perception that it creates that we aren’t ‘real’ stores because we don’t carry X.  When the question becomes ‘Why don’t you have X’, and our answer is ‘because they won’t sell it to us’, it rarely ends up being a good conversation.

 

Over the years, we’ve grown the number of distributors we’ve had to work with from a small 4 distributors to now, over 12+ major distributors who we order from once a quarter.  That’s not including the occasionally publishers who we order a single game from.  This business has grown in complexity significantly it seems and I sometimes wonder how someone who is new to the business keeps up.  At least we’ve had a few years worth of experience to help us.

Bestsellers since 2010

We decided to look at (dollar value wise) which board games since Jan 1, 2010 were our bestsellers.  Surprisingly, even across almost 6 years that we looked at, some of the bestsellers we’ve ever seen have continued to do well even over 6 years.
Top Ten Games List

 

 

Click on the image to get it bigger.

Note that with the way our software works, things like PandemicSettlers of Catan and Descent core set which have been updated don’t necessarily reflect the total sales.  Anyway, here’s the data in table format.

ZMG7021 Pandemic 14%
ASMSEVUS01 7 Wonders 11%
PHGDOW01 Dead of Winter: A Crossroads Game 10%
RIO370 Dominion 10%
ASMECL01 Eclipse 10%
DOW7201 Ticket to Ride 10%
DOW7202 Ticket to Ride Europe 9%
MFG3061 Settlers of Catan 4th Edition 9%
ZMG7026 Agricola 9%
FFGVA11 Descent : Journeys in the Dark 9%

Warehouse or Retail Store?

Game LibraryWe are coming up on our end of the lease fast and while we’ve made the decision that we will be moving to a new location as our rents have now increased to a point that we no longer think it’s worthwhile to stay, the question we are still working our way through is whether to go full retail or stay as an online store.

Warehouse

Continuing to run a warehouse makes a lot of sense in many ways.  There are some major pros including:

  • well optimised polices and procedures
  • ability to take on more and larger Kickstarter projects
  • potentially branching into other non-related product lines in ways that don’t create confusion among our customers (e.g. selling sporting equipment on a new website)
  • lower cost (we can get warehouse spaces for cheaper than what we are paying right now, so we’d actually drop our cost!)

The Cons though are somewhat more nebulous

  • new location likely to be less central significantly
  • growth has to come from new categories as our gaming category has slowed
  • potentially being locked out further by publishers
  • it’s boring…

Retail Store

Going with the retail store, things get a bit more interesting for the future, with some of the pro’s including:

  • new revenue streams from snacks & drinks & events
  • ability to access and run events / games likes Magic the Gathering and miniature games
  • increase in sales to casual drop-in’s and potential increase in sales from impulse buying of our geek products
  • significantly more options for PR and social media outreach

However, there are some major cons:

  • significantly higher lease cost (we’re looking at least another $4,000 a month at a minimum, more likely $5-7k).
  • new staff and staffing hours would be required.  Approximately $3k more in terms of staffing cost per month
  • loss of revenue from Kickstarter projects.  We probably could handle the smaller projects still, but the larger projects would be difficult (i.e. we couldn’t quote on projects over a few hundred games just due to lack of storage areas for them)
  • new capital requirements for shelving, gondolas, POS systems, etc.  At least another 5 – 10k depending on how nice we want to go.
  • potentially sub-par location.  We need a minimum of 2,500 sq ft and are probably looking at 3,000 up to 5,000 sq ft.  There just aren’t that many locations of that size in Vancouver, especially in retail and for the prices we can afford which would raise the total rent even higher
  • too close locations are another major issue as there are so many game stores right now, finding a location that isn’t too close to an existing store is another problem.

There’s also a rather concerning trend in real estate pricing.  In general, commercial pricing seems to run 2 – 3 years behind retail pricing, so if there is a drop in sales in retail pricing, we might expect a price drop in a few years which means that any lease we sign right now might be on the high price.

Charities & Budgets

Charity QuoteWe get a request for a charitable & promotional contribution of some form about once every 2 weeks. Most of these charities or groups are people who we’ve never even heard from before and many don’t really offer much in terms of marketing opportunities.  Many are also only tangentially related to our industry, so many of these e-mails are just ‘mass’ mailings to see what they can get.

Over the years, we’ve varied how much and under what conditions we’ll provide charitable contributions.  One hard and fast rule we’ve made though is not to support any charity / event that isn’t Canadian.  After all, most of our customers are Canadian and sending product across the border increases our cost so much, there’s really no point.

Currently, we don’t have a hard budget for our charitable contributions.  Part of that is due to the fact that we generally provide products as our contribution, which allows us to be a bit more flexible in what we can offer.  Thankfully, being in this industry, we can generally provide decent games that aren’t complete turkeys that don’t sell well for us.  Still,  even without a budget we need a way to guesstimate how much to send to each charity (unless said charity already has sponsorship levels).

That’s where we start assessing potential return and relevance.  If you are a gaming related event / charity, it makes more sense to provide more products to you.  If it’s for an event where we expect the games to be used regularly, we’ll provide more (examples including schools and libraries looking to expand their programming).  On the other hand, if it’s a charity for pet therapy for example, there’s not a lot of relevance for us.

From there, we also look at the size of the event.  If it’s an event with only 50 people arriving, it’s no use sending 20 games.  If it’s an event where there’s a few thousand, then a larger contribution makes sense since it ‘spreads’ the contribution around further.

One thing we don’t do, or haven’t done, is chosen to support / advocate for any specific cause.  Of course, we ran the Lower Mainland Christmas  Bureau’s  donation drive last year, but it’s not a ’cause’ if you will.  There’s a few reasons for that, mostly due to my belief that my personal views / feelings shouldn’t impact the way the business is run. Still, now that Christmas is coming, I’m wondering if we should look at running another charity drive.

 

The Summer Free Shipping Promotion

Free Shipping Promo of $100 cancelled As many of you know, the Summer Free Shipping Promotion has ended. As with any promotion or marketing tactic, one of our main goals is to evaluate the promotion to understand whether it actually hit it’s goal – that is, drove more sales and traffic. Normally, all we’d have to do is compare the previous period (i.e. same months last year) to this period and; adjusting for regular sales increase, figure out the difference in both revenue and number of sales. Unfortunately, as many of you know, we had a huge problem in the middle of the month – the Canada Post strike/lockout threat. This created a huge amount of uncertainty and we even had to turn off the promotion at some point as we switched to shipping via UPS.

How much difference did the threat of a Canada Post strike make in our sales? Well, we saw a 31% drop in total shipments and about 35% in total in June where the strike affected us most. That’s a huge drop, especially when you realise that the next month (August) we saw a full 40% increase. Now, you could say that the 40% increase was from the free shipping but there’s also an argument to be made that the increase is in part due to orders that were ‘held-off’ during the strike period.

On top of all this of course is the calculation needed to figure out the difference in profitability. It’s not enough to know how much more we made (if anything); it’s also important to know how much more we paid in shipping. There’s 2 main ways to do this of course – a line by line review (matching each free shipping order to it’s associated cost in our invoices) or we could go with averages. In this case, we work out the average cost of shipping each order and compare it against our previous year to work out the increase / change and compare it to our average revenue generated from shipping. This lets us know the difference that each order ‘cost’ us to ship, which then lets us work out the increased cost of shipping. Unfortunately, again; not that easy since we also have a bunch of Kickstarter shipments in our invoices. Which means we have to individually take it all out to actually work out our actual cost of shipping.

Overall, here’s what we figured out:

  • The lower free shipping threshold probably generated an increase in orders
  • This increase mainly came from existing customers, not new customers
  • Surprisingly, the average sale value saw only a small change (6.82%)
  • Profit margins per order dropped by about 16.98%

However, because of the strike our total number of orders actually dropped in comparison to last year (about 16%)  during the period in question.  It’s hard to draw any real conclusions because of the strike, though there is enough data to suggest that if the strike hadn’t happened we would have seen an overall increase in number of orders.  The question which we can’t answer is whether that increase would make up for the drop in our profit margins (we need about a 34% increase overall to breakeven on the loss in profits) since the two months we just don’t have enough data / time to make it clear.  My guess is that it probably a wash if a slight decrease in our overall profit, which is why we’ve moved back to the $175 free shipping option for now.

The Warehouse Sale & the Game Library

The Warehouse Sale

We spent just over a week going through every item that’s come in in the last few years, adding everything that we don’t intend to carry on a regular basis from now on.  To help clearance everything, we’re providing an additional discount that is linked to how many clearance items you purchased.  The discount works this way:

  • Buy $50 of clearance items, get a 5% discount on non-clearance items
  • Buy $100 of clearance items, get a 10% discount on non-clearance items
  • Buy $250 of clearance items, get a 20% discount on non-clearance items

For this additional discount to show up, you’ll need to purchase all of these items at the same time.  The shopping cart should automatically add the appropriate discount level to all non-clearance products.

The Game Library

Game Library

 

We’ve launched our game library with membership open to those in GVRD.  We’re running this as a test program to see the level of interest for such a program.  While there are over a 100 games in the library, it’s quite clear that there are a lot of newer games that are missing.  The goal is to increase the game library inline with our membership numbers, with membership dues being used to add to the game library.

Of course, in the beginning we’re looking at purchasing game demo’s since it’ll keep our cost down, but depending on the level of interest, we might just add a few other games don’t have a demo program too. If there is very little or no interest, we’ll probably put the program on hold but we’ll likely try to run the program though to the end of the year at least.

Feel free to ask any questions you might have on the new program below.

Miniature Lines

Lastly, one thing we’ve decided on is to reduce the number of miniatures we have been stocking.  Instead, we’re switching over to special orders for the vast majority of miniatures other than our Bones line.  As these items are going to be on special order, we are also reducing our markup somewhat as the pricing on the new Guild Ball items will illustrate.  As usual, if there’s a miniature you’d like to purchase which isn’t on the site, e-mail us and we’ll add it to the site for your special order.

Kickstarter Fulfillment

IMG_0722
We have been getting some great press about the Kickstarter Fulfillment service that we offer out of the warehouse. Overall, it’s been quite fun to handle and we are glad to see some great games get out to Kickstarter backers. However, I do want to reassure our regular customers that it’s not something that is ever going to become a major part of the business (at least not in the sense of it taking over the retail side).

For one thing, most of our fulfillment happens during the warehouse ‘down-time’. As we hire part-time warehouse workers, for most fulfillment options we just increase the number of hours that our warehouse personnel work to full-time each day. Even working on our regular orders, we generally can complete about 200 additional games a day which is more than sufficient for most Kickstarter’s.

That’s another point worth mentioning or highlighting. For the vast majority of Kickstarter’s, we are told that Canada makes up 10% of all backers. In our experience, that generally works out to be between 100 – 200 backers at best for a very successful Kickstarter, around 40 – 50 for those that do well. Now, our rates are posted publicly (CAD$3.50 per order fulfilled) but those rates include boxes & packing materials which on average works out to be about CAD$1 in cost. That works out to be about CAD$2.50 before we have to pay staff for their time and of course, any mistakes we make comes out of the total as we pay for reshipments & returns. On top of that, for every Kickstarter quote that we do get, there are at least another 5 that we don’t get and end-up wasting time on. All that time has to be paid for somewhere.

As you can guess, the profitability of doing Kickstarter fulfillment really isn’t high. So why bother doing it?

  • Industry relations – doing the Kickstarter fulfillment, we’ve been in touch with a wide range of publishers and backers, many of whom we’d never have talked to if we weren’t doing this.  As such, it’s a good way of extending our network.
  • Marginal profit – every little bit helps.  If the warehouse isn’t being used at that time, it’s additional marginal use that we can make of it, so the marginal profitability is still worthwhile.  Of course, there’s a certain level before this marginal business start’s being a main business, but in Canada, it would have to be a significant increase.

IMG_0720