Petition to Topps Company, Inc.

Regarding Wholesale Pricing and Business Model Impact on Small Local Card Shops

To: Topps Company, Inc.

We, the undersigned members of the sports and trading card collecting community are writing to express our deep concern regarding the recent increase in wholesale prices for Topps products and the new business model that requires card shop owners to pay for products 60 days in advance. This change is having a detrimental impact on small local card shops, which are vital to our community.

Small card shops are the backbone, foundation, and pillars of The Hobby. They provide spaces for collectors to gather, trade, and share their passion for sports and trading cards. These shops are more than businesses; they are community hubs that foster relationships and enhance the overall experience of collecting. Their significance to The Hobby cannot be overstated.

The new pricing model places an undue burden on smaller shops that often lack the capital to tie up their funds for such an extended period. As a result, many of these shops, which have been integral parts of our community for years, are struggling to stay afloat. This approach appears to favor larger retailers with the financial resources to accommodate these terms, creating an uneven playing field and threatening to drive many beloved small shops out of business.

At the end of the day, card shops are businesses, and businesses are not in business to lose money or go out of business. It is already challenging for these shops to get by, often having to explore other avenues of potential revenue, such as live streaming and breaking. Those shops that do not partake in live breaks or live streaming are finding it increasingly difficult to keep the lights on and the business running, relying solely on the small profits made from reselling products.

Moreover, these new expectations set by card manufacturers are not only unreasonable but also leave a bad taste in the end users' mouths—the customers buying the cards. When customers walk into their local card shops and are unable to purchase the latest releases because the shop owner could not afford to front the capital so far in advance due to the new business model, it damages the customer experience and undermines the entire ecosystem of The Hobby.

We urge Topps to reconsider this business model and explore alternatives that support small local card shops. Possible solutions could include:

Flexible Payment Terms

• Implement a tiered payment system that offers extended payment terms for smaller retailers. For example, allowing smaller shops to pay 10 days in advance instead of 60 days, or offering installment plans to spread out the financial burden.

Reduced Advance Payment Periods

• Shorten the advance payment period to more manageable timeframes, such as 15 or 30 days. This would help small businesses manage their cash flow more effectively and reduce the financial strain.

Volume-Based Discounts

• Provide discounts or incentives for smaller orders, recognizing that small shops cannot purchase in the same bulk quantities as larger retailers. This could help level the playing field and make it more feasible for small shops to remain competitive.

Consignment Options

• Offer consignment arrangements where shops can pay for products after they have been sold. This would significantly reduce the upfront financial burden on small shops and allow them to invest more in promoting and selling Topps products.

Loyalty Programs

• Introduce loyalty programs that reward small shops for their long-term partnership with Topps. Benefits could include priority access to new releases, marketing support, and exclusive product offerings.

Community Support Initiatives

• Establish a fund or grant program to provide financial assistance to small shops facing hardship due to the new pricing model. This could help sustain these businesses through challenging periods and maintain the diversity of The Hobby.

Our shared love for The Hobby and the role that Topps has played in its growth and success over the years motivates us to seek a solution that benefits all parties involved. We believe that with thoughtful consideration and collaboration, we can find a way to ensure that small local card shops can continue to thrive and contribute to the rich tapestry of The Hobby.

Thank you for your attention to this matter. We look forward to your response and to working together to support the entire card collecting community.