PDFs vs. Physical Miniatures--It's the 21st century, folks
Jan 31, 2017 23:06:33 GMT -9
whiteknight06604, gilius, and 4 more like this
Post by jeffgeorge on Jan 31, 2017 23:06:33 GMT -9
Preface/TL;DR
This conversation started in a thread about very nice miniatures offered by a particular publisher, who sells them only as physical goods, and not as PDFs. Not surprisingly, the members of this forum complimented the quality of the artwork, and assured the publisher that as soon as printable PDFs were available for purchase and download, they'd be customers. When my "brief" response to the thread grew into a long essay on a broader topic, I felt it was unfair to hijack the publisher's thread by posting it there, so I'm starting a new conversation here. My intent is not to insult or offend publishers of physical paper minis, but to try to explain why I believe they are missing out on a lot of sales by refusing to offer PDFs of their products.
Why not sell minis as PDFs?
I think concerns about piracy is the whole reason they don't offer pdf's. Understandable, really.
I get that, but refusing to offer PDFs is 20th century thinking. Everyone selling printable miniatures through DriveThru/RPGNow (OBS) has moved their thinking about product fulfillment into the 21st century. The piracy thing is a very minor concern, really, so let's consider some real issues before we get distracted by piracy.
Physical products cost a lot to produce, and more over time, and aren't always available
When you sell a set of minis thru OBS as a PDF, you're not selling a physical object, you're selling the right to reprint copyrighted material for personal use. Selling rights is much, much cheaper for the publisher than selling things, because rights can be conveyed digitally, while things have to be manufactured, stored, and shipped to the consumer. These requirements massively increase the publisher's cost to deliver product, which in turn massively increases the price he must charge the consumer.
When the consumer price goes up, sales volume goes down, which just increases the margin the publisher must demand per sale in order to keep his doors open--which starts a feedback loop that just keeps driving the price up until the demand for the product approaches zero. Eventually, the publisher has to cut prices in order to clear physical stock, because physical inventory not only costs money to manufacture, it also costs money to store. Thus, inventory has to be moved out, or it continues to get more expensive over time even after it is manufactured. Eventually, the publisher ends up selling remaining inventory at a loss, just to cut off the continuing cost of storage.
The cost to produce, store and ship a single pack of half a dozen physical miniatures is probably several dollars, and it's a cost that only increases over time. In order to realize a profit, the publisher has to charge even more than several dollars. Even when he does that, he's only netting a small percentage of the cost to the consumer. In the end, he's probably making $1-2 per pack, assuming he can sell them at something approaching his full retail price. And in order to get at that narrow profit, he's first got to sell enough product to cover the original production cost for the entire run--several hundred or a few thousand dollars he almost certainly had to pay to a printer in full, up front. If he's had 1,000 packs manufactured at a cost of $3 per pack, and he's selling them at $6 per pack, he's got to sell 500 units just to cover his manufacturing costs, before he's even starting to cover his overhead and in-house labor (which mostly goes into packing for shipping, and even at minimum wage, probably adds $1-2 to the cost to deliver a single unit).
So the costs to a publisher of physical game products are always being pushed up, while competition and consumer expectations are constantly pushing sales, and therefore prices, down. He's caught in the middle, waiting longer and longer for ever-diminishing income from the sale and delivery of physical products. The longer this goes on, the less money he makes, and the longer it takes him to make it. And there's a cap on how much he can possibly make before having to make an additional up-front investment, because he has a finite number of units to sell before he runs out and has to print more. If he runs out of inventory and can't afford or justify the investment in a reprint--which would require being confident of at least several hundred unit sales within a short period--the product goes out of print at least temporarily, and sales go to zero.
PDFs cost little to produce, and nothing over time
On the other hand, if he's selling rights to a print a PDF for personal use, his only cost is that of producing the original PDF. No matter how many units he sells, it never costs him any more. He doesn't have to pay for print production, storage, or packing and shipping, with either time or money. His products are never out of print, and they are instantly available 24/7, on demand, even when he's on vacation or in the hospital. His cost per unit, which was minimal to begin with, is constantly going down, not up. For all these reasons, he can make more money per unit, even though his price to the consumer is less than half of what the publisher of physical goods must charge just to break even. And because his price per unit is lower, his sales will be higher--and that's ignoring the fact that most consumers feel there's more value in the right to print an infinite number of miniatures themselves than in receiving 5 or 6 physical paper minis, even if they come with reusable plastic stands.
Just as important, PDFs never go out of print. They are infinitely and instantly available. Even if your sales on some items drop to a few units per year, it costs nothing to keep those items available, and keep picking up those few bucks a year, forever, as long as OBS remains active.
You make more money selling PDFs than physical products
Speaking strictly for myself, I will cheerfully pay about $3 for a set of minis as a PDF, and feel like I got a great value, while I won't spend $9, $6, or even $3 for a half-dozen physical paper miniatures. And of the $3 I paid for the right to print those minis for my own use, the publisher will receive close to $2 from OBS. (I believe the split at OBS is about 1/3 to OBS, 2/3 to the publisher. Although this is only a ballpark figure, it's close enough for the purposes of this conversation.)
For example, in recent weeks, I've bought about 9 sets of Trash Mob Minis, cheerfully paying an average of about $3 per set, because I feel that those products are an excellent value to me. (I've bought a lot of other vendors' minis as well, but Trash Mob is what I bought most recently.) I've bought exactly zero sets of physical, pre-printed miniatures, from any publisher at all, ever, and I simply never will, because at $1 to $2 per miniature, they are a terrible value, no matter how good the artwork. You'd have to get them down to $0.20 per figure or less before I'd even consider buying them, which means less than $1.50 per set--a price at which they cannot be profitably manufactured and shipped (See note, below). So Trash Mob Minis has made at least $15 off of me in the past few months, and I'm very happy with my purchases and will continue to buy more, while publishers of physical minis have made $0 from me, and never will, until they offer PDF versions of their products. And even if I were willing to pay $9 or even $6 per set for physical minis, I would buy half as many physical sets or less than I would buy PDFs, but--and this point is key--the publisher's profit of about $2 per unit is roughly the same on both physical and PDF products. So even if I spent the same $25-$30 on physical minis as I have on Trash Mob minis, that would only pay for three units. The publisher's total profit on those three sets would be about $5, because his margins are unavoidably much narrower than Trash Mob's, who pocketed $15 out of the $25 I spent.
Piracy doesn't matter
The piracy concern is a fallacy, despite the fact that lots of publishers make major decisions based upon it. Pirated copies are annoying, but they only represent a financial loss if they cost the publisher actual sales. The overwhelming majority of people who obtain pirated copies of game products were never going to pay money for them, so their possession of these pirated copies costs the publisher nothing. The software industry has learned over and over again that measures to prevent piracy only inconvenience legal purchasers, because their freedom to use the product they legally purchased is compromised, while pirates will always manage to circumvent any protection the publisher can come up with. Thus, copy-protection--even the brute-force copy-protection afforded by not making PDFs available--hurts sales without reducing piracy. Any pirate with a $60 scanner and a copy of Photoshop Elements can pirate a physical set of printed miniatures--charging $9 for the set does nothing to stop him, but it does cost the publisher a lot of honest sales, and massively increases his cost--in both time and money--of publishing. Piracy is completely unpreventable, yet it represents virtually zero lost sales. Therefore, it should be ignored.
Another thing that some publishers worry about is sales lost when legal purchasers "loan" their PDFs to people they know personally--either by handing them a digital copy of the PDF, or by printing out a copy of the product for them for them. The theory is that this "loaned" copy represents a lost sale. In practice, I think publishers should look at this sort of sharing as marketing, rather than piracy. If I someone in my gaming group admired my paper minis, and asked me if he could have some, I'd print him a sheet and bring them to our next game session. (Personally, I wouldn't share the PDF, but even if I did, the net effect is not that much different.) If he assembles them, uses them, and likes them, he's likely to go to OBS, see how inexpensive they are, and buy more of them. Sure, he got the first set for free, but he's now a paying customer. In fact, this is actually not much different than people loaning books to their friends. A new player may borrow his GM's copy of the Players' Handbook for a week or two, but he ends up liking the game and buying his own copy--and probably several more books--so the loan represents a no-cost marketing investment for the publisher, not a lost sale. Show me a form of advertising where you can gain a real, paying customer for less than $2--the "cost" to the publisher of a shared PDF--and I'll show you a very, very happy marketing department.
I know this works, because it's how I got into paper minis. Now, I'm not currently involved with an active gaming group (I play occasionally with strangers at my local game shop, as my schedule allows), but I did start out by downloading the free sample sets many miniature publishers make available for free at OBS. I started by downloading and printing everything okumarts offered for free...then I bought Darkfast Dungeons, and a couple of paid Okumarts sets. And then a couple more. And then they were on sale, and I bought most of the ones I hadn't already...as well as some by other artists. And then more. I'm now a Patreon patron for printableheroes as well, because that's a great value, too. All because I got the first couple of sets for free. (Thanks, David!) If no one had offered a free entry into the printable miniature niche, it might have been months before I laid down money for my first set, or I might have gotten distracted before I got to that point, and never bought any at all.
In fact, the only way to fight wide distribution of your product by willful pirates, and to minimize the cost of the limited sort of sharing that will almost certainly occur among face-to-face friends, is to find a way to price your products so low that there is no compelling reason to violate copyright. Similarly, Adobe had massive problems with pirated copies of Photoshop when the only version available was the $500 pro version; that's why the $60 version, Photoshop Elements, exists...to eliminate the motivation to steal the pro version. Since Adobe has continued to offer Photoshop Elements, and added Premiere Elements as well, my guess is that the sale of those much-cheaper products cut into the distribution of pirated copies of Photoshop much more than it reduced the sale of the full, $500 version. In general, people want to be honest, and if you make it practical for them to be so, they will be. If you make it expensive to be honest, a few will steal from you (and those weren't going to buy from you at any price, anyway), but most will simply spend their money on someone else's products...of which there are many.
The power of impulse
Now, if the cost per set for printable mini PDFs averaged between $5 and $10, I'd still buy a few sets, but only a few. And in all honesty, at that price point, I probably would look for personal friends and gaming associates to share costs with, either by partnering on purchases, or trading printed sheets. I find when shopping that $3 is a really psychologically-significant price point. If I see a set I like on OBS, and it costs less than $3, I don't hesitate...I just click "Add to Cart," and keep on shopping. Once it passes $3, though, it rounds to $5, and it starts to feel like real money. It becomes a purchase I have to consider, weigh, and compare, because at $5, I start to feel like if I buy this, I can't afford or justify also buying that. At $2.50 each, I'll probably buy both, and maybe more, but at $3-$5, I'll only buy one, and I'll think hard about it before I do it. I may end up buying nothing at all.
Add to the price-point advantage that PDFs have over physical miniatures the convenience of shopping through OBS. I have an existing account with OBS. They already have my payment information, I've made many (many, many) purchases through them, and I know them to be extremely reliable and always available. Many or most of their products have ratings and reviews that are at least somewhat useful in evaluating purchases. And they have literally thousands of products available for free to draw me to the site and start me browsing, making it more likely that I'll find something to pay money for as well. And when I buy a PDF, I have it instantly, even if it's 2 am on New Year's Day. (Shut up. I'm a dad. I don't go out for New Year's anymore.)
To purchase a physical set of miniatures, I probably have find a website I've never visited or even heard of before, give my credit card information to strangers, pay for shipping, and then wait for several days to see if I even like what I bought, all the while trusting people I've never done business with before to fulfill their promise to deliver a product to me. That's a series of big hurdles I have to clear before buying a physical product online, and any one of them is likely to cost the publisher a sale. If you want me to buy your product, make it easy for me to buy it, and let me have it now. Don't make me work for it, or wait for it, because I won't.
Then why does WOTC sell books instead of PDFs?
Major publishers sell books instead of PDFs for several reasons. First, in order to move the amount of product they must, the have to be in retail stores all the time. No one shopping in a retail store will settle for a PDF. Second, major publishers are selling books that are hundreds of pages long, and people are much less likely to print out (and bind, somehow) a 200-page book than one page of cardstock miniatures. Third, volume--the big players are selling thousands of units a month. With numbers like that, they can cost-effectively print overseas, cutting their cost per unit to a fraction of what it would cost to print a few hundred units in the US. Fourth, they have consumer awareness the indie publisher lacks--everyone with a television has heard of Dungeons and Dragons (thanks, Big Bang Theory), and everyone in the hobby has heard of Pathfinder. This allows them to reach the mass market--Wizards of the Coast makes their money selling a few large, expensive books to lots of tens or hundreds of thousands of people, many of whom are playing tabletop RPGs for the first time. Independent publishers make their money selling lots of different products to the same small group of people--those already in the hobby--usually at a lower price point. An independent publisher not only can't compete with WOTC at selling game books, he even can't get into brick-and-mortar stores to try.
Bottom Line: If you're not WOTC or Paizo, you should be selling PDFs, not physical products
Although the retail price-point of printable miniature PDFs is lower than that of physical pre-printed minis, the near-zero cost of goods for PDFs means the absolute profit per unit is the roughly the same, with far fewer barriers to sales. I don't have any figures to prove it, but I would bet money that any of the "major" PDF-based mini publishers--several of whom are active in this forum--probably sell far more units of each of their sets through OBS than publishers selling only physical paper miniatures, with far less hassle fulfilling orders (again, zero hassle, or close to it). Unless you can realistically expect to have your line stocked not just in a few specialty game and comic shops, but also in chain book stores, hobby stores, and discount stores nationwide, there is no compelling reason to manufacture and distribute physical products. And the piracy thing is simply not a worry at all.
Note: There is one place to get printed minis for a price I'd pay: the Pathfinder Pawns sets. The NPC Codex set, for example, costs about $30, for which you get 300(!) printed miniatures AND 25 plastic bases (5 large bases, 20 "regular" ones). At that price, they're charging about 10 cents per mini, and throwing in about $10 worth of bases (roughly compared to the cost of Litko bases) for free. So, $0.10 is the going rate for physical, pre-printed minis, AND I can walk into my local game store--whom I know, like, and want to support--and have them in hand in less than an hour. Compared to that, the $1.50-$2 that independent publishers are charging for similar products are getting killed, and they're making me wait several days to get them shipped to me.
This conversation started in a thread about very nice miniatures offered by a particular publisher, who sells them only as physical goods, and not as PDFs. Not surprisingly, the members of this forum complimented the quality of the artwork, and assured the publisher that as soon as printable PDFs were available for purchase and download, they'd be customers. When my "brief" response to the thread grew into a long essay on a broader topic, I felt it was unfair to hijack the publisher's thread by posting it there, so I'm starting a new conversation here. My intent is not to insult or offend publishers of physical paper minis, but to try to explain why I believe they are missing out on a lot of sales by refusing to offer PDFs of their products.
Why not sell minis as PDFs?

I get that, but refusing to offer PDFs is 20th century thinking. Everyone selling printable miniatures through DriveThru/RPGNow (OBS) has moved their thinking about product fulfillment into the 21st century. The piracy thing is a very minor concern, really, so let's consider some real issues before we get distracted by piracy.
Physical products cost a lot to produce, and more over time, and aren't always available
When you sell a set of minis thru OBS as a PDF, you're not selling a physical object, you're selling the right to reprint copyrighted material for personal use. Selling rights is much, much cheaper for the publisher than selling things, because rights can be conveyed digitally, while things have to be manufactured, stored, and shipped to the consumer. These requirements massively increase the publisher's cost to deliver product, which in turn massively increases the price he must charge the consumer.
When the consumer price goes up, sales volume goes down, which just increases the margin the publisher must demand per sale in order to keep his doors open--which starts a feedback loop that just keeps driving the price up until the demand for the product approaches zero. Eventually, the publisher has to cut prices in order to clear physical stock, because physical inventory not only costs money to manufacture, it also costs money to store. Thus, inventory has to be moved out, or it continues to get more expensive over time even after it is manufactured. Eventually, the publisher ends up selling remaining inventory at a loss, just to cut off the continuing cost of storage.
The cost to produce, store and ship a single pack of half a dozen physical miniatures is probably several dollars, and it's a cost that only increases over time. In order to realize a profit, the publisher has to charge even more than several dollars. Even when he does that, he's only netting a small percentage of the cost to the consumer. In the end, he's probably making $1-2 per pack, assuming he can sell them at something approaching his full retail price. And in order to get at that narrow profit, he's first got to sell enough product to cover the original production cost for the entire run--several hundred or a few thousand dollars he almost certainly had to pay to a printer in full, up front. If he's had 1,000 packs manufactured at a cost of $3 per pack, and he's selling them at $6 per pack, he's got to sell 500 units just to cover his manufacturing costs, before he's even starting to cover his overhead and in-house labor (which mostly goes into packing for shipping, and even at minimum wage, probably adds $1-2 to the cost to deliver a single unit).
So the costs to a publisher of physical game products are always being pushed up, while competition and consumer expectations are constantly pushing sales, and therefore prices, down. He's caught in the middle, waiting longer and longer for ever-diminishing income from the sale and delivery of physical products. The longer this goes on, the less money he makes, and the longer it takes him to make it. And there's a cap on how much he can possibly make before having to make an additional up-front investment, because he has a finite number of units to sell before he runs out and has to print more. If he runs out of inventory and can't afford or justify the investment in a reprint--which would require being confident of at least several hundred unit sales within a short period--the product goes out of print at least temporarily, and sales go to zero.
PDFs cost little to produce, and nothing over time
On the other hand, if he's selling rights to a print a PDF for personal use, his only cost is that of producing the original PDF. No matter how many units he sells, it never costs him any more. He doesn't have to pay for print production, storage, or packing and shipping, with either time or money. His products are never out of print, and they are instantly available 24/7, on demand, even when he's on vacation or in the hospital. His cost per unit, which was minimal to begin with, is constantly going down, not up. For all these reasons, he can make more money per unit, even though his price to the consumer is less than half of what the publisher of physical goods must charge just to break even. And because his price per unit is lower, his sales will be higher--and that's ignoring the fact that most consumers feel there's more value in the right to print an infinite number of miniatures themselves than in receiving 5 or 6 physical paper minis, even if they come with reusable plastic stands.
Just as important, PDFs never go out of print. They are infinitely and instantly available. Even if your sales on some items drop to a few units per year, it costs nothing to keep those items available, and keep picking up those few bucks a year, forever, as long as OBS remains active.
You make more money selling PDFs than physical products
Speaking strictly for myself, I will cheerfully pay about $3 for a set of minis as a PDF, and feel like I got a great value, while I won't spend $9, $6, or even $3 for a half-dozen physical paper miniatures. And of the $3 I paid for the right to print those minis for my own use, the publisher will receive close to $2 from OBS. (I believe the split at OBS is about 1/3 to OBS, 2/3 to the publisher. Although this is only a ballpark figure, it's close enough for the purposes of this conversation.)
For example, in recent weeks, I've bought about 9 sets of Trash Mob Minis, cheerfully paying an average of about $3 per set, because I feel that those products are an excellent value to me. (I've bought a lot of other vendors' minis as well, but Trash Mob is what I bought most recently.) I've bought exactly zero sets of physical, pre-printed miniatures, from any publisher at all, ever, and I simply never will, because at $1 to $2 per miniature, they are a terrible value, no matter how good the artwork. You'd have to get them down to $0.20 per figure or less before I'd even consider buying them, which means less than $1.50 per set--a price at which they cannot be profitably manufactured and shipped (See note, below). So Trash Mob Minis has made at least $15 off of me in the past few months, and I'm very happy with my purchases and will continue to buy more, while publishers of physical minis have made $0 from me, and never will, until they offer PDF versions of their products. And even if I were willing to pay $9 or even $6 per set for physical minis, I would buy half as many physical sets or less than I would buy PDFs, but--and this point is key--the publisher's profit of about $2 per unit is roughly the same on both physical and PDF products. So even if I spent the same $25-$30 on physical minis as I have on Trash Mob minis, that would only pay for three units. The publisher's total profit on those three sets would be about $5, because his margins are unavoidably much narrower than Trash Mob's, who pocketed $15 out of the $25 I spent.
Piracy doesn't matter
The piracy concern is a fallacy, despite the fact that lots of publishers make major decisions based upon it. Pirated copies are annoying, but they only represent a financial loss if they cost the publisher actual sales. The overwhelming majority of people who obtain pirated copies of game products were never going to pay money for them, so their possession of these pirated copies costs the publisher nothing. The software industry has learned over and over again that measures to prevent piracy only inconvenience legal purchasers, because their freedom to use the product they legally purchased is compromised, while pirates will always manage to circumvent any protection the publisher can come up with. Thus, copy-protection--even the brute-force copy-protection afforded by not making PDFs available--hurts sales without reducing piracy. Any pirate with a $60 scanner and a copy of Photoshop Elements can pirate a physical set of printed miniatures--charging $9 for the set does nothing to stop him, but it does cost the publisher a lot of honest sales, and massively increases his cost--in both time and money--of publishing. Piracy is completely unpreventable, yet it represents virtually zero lost sales. Therefore, it should be ignored.
Another thing that some publishers worry about is sales lost when legal purchasers "loan" their PDFs to people they know personally--either by handing them a digital copy of the PDF, or by printing out a copy of the product for them for them. The theory is that this "loaned" copy represents a lost sale. In practice, I think publishers should look at this sort of sharing as marketing, rather than piracy. If I someone in my gaming group admired my paper minis, and asked me if he could have some, I'd print him a sheet and bring them to our next game session. (Personally, I wouldn't share the PDF, but even if I did, the net effect is not that much different.) If he assembles them, uses them, and likes them, he's likely to go to OBS, see how inexpensive they are, and buy more of them. Sure, he got the first set for free, but he's now a paying customer. In fact, this is actually not much different than people loaning books to their friends. A new player may borrow his GM's copy of the Players' Handbook for a week or two, but he ends up liking the game and buying his own copy--and probably several more books--so the loan represents a no-cost marketing investment for the publisher, not a lost sale. Show me a form of advertising where you can gain a real, paying customer for less than $2--the "cost" to the publisher of a shared PDF--and I'll show you a very, very happy marketing department.
I know this works, because it's how I got into paper minis. Now, I'm not currently involved with an active gaming group (I play occasionally with strangers at my local game shop, as my schedule allows), but I did start out by downloading the free sample sets many miniature publishers make available for free at OBS. I started by downloading and printing everything okumarts offered for free...then I bought Darkfast Dungeons, and a couple of paid Okumarts sets. And then a couple more. And then they were on sale, and I bought most of the ones I hadn't already...as well as some by other artists. And then more. I'm now a Patreon patron for printableheroes as well, because that's a great value, too. All because I got the first couple of sets for free. (Thanks, David!) If no one had offered a free entry into the printable miniature niche, it might have been months before I laid down money for my first set, or I might have gotten distracted before I got to that point, and never bought any at all.
In fact, the only way to fight wide distribution of your product by willful pirates, and to minimize the cost of the limited sort of sharing that will almost certainly occur among face-to-face friends, is to find a way to price your products so low that there is no compelling reason to violate copyright. Similarly, Adobe had massive problems with pirated copies of Photoshop when the only version available was the $500 pro version; that's why the $60 version, Photoshop Elements, exists...to eliminate the motivation to steal the pro version. Since Adobe has continued to offer Photoshop Elements, and added Premiere Elements as well, my guess is that the sale of those much-cheaper products cut into the distribution of pirated copies of Photoshop much more than it reduced the sale of the full, $500 version. In general, people want to be honest, and if you make it practical for them to be so, they will be. If you make it expensive to be honest, a few will steal from you (and those weren't going to buy from you at any price, anyway), but most will simply spend their money on someone else's products...of which there are many.
The power of impulse
Now, if the cost per set for printable mini PDFs averaged between $5 and $10, I'd still buy a few sets, but only a few. And in all honesty, at that price point, I probably would look for personal friends and gaming associates to share costs with, either by partnering on purchases, or trading printed sheets. I find when shopping that $3 is a really psychologically-significant price point. If I see a set I like on OBS, and it costs less than $3, I don't hesitate...I just click "Add to Cart," and keep on shopping. Once it passes $3, though, it rounds to $5, and it starts to feel like real money. It becomes a purchase I have to consider, weigh, and compare, because at $5, I start to feel like if I buy this, I can't afford or justify also buying that. At $2.50 each, I'll probably buy both, and maybe more, but at $3-$5, I'll only buy one, and I'll think hard about it before I do it. I may end up buying nothing at all.
Add to the price-point advantage that PDFs have over physical miniatures the convenience of shopping through OBS. I have an existing account with OBS. They already have my payment information, I've made many (many, many) purchases through them, and I know them to be extremely reliable and always available. Many or most of their products have ratings and reviews that are at least somewhat useful in evaluating purchases. And they have literally thousands of products available for free to draw me to the site and start me browsing, making it more likely that I'll find something to pay money for as well. And when I buy a PDF, I have it instantly, even if it's 2 am on New Year's Day. (Shut up. I'm a dad. I don't go out for New Year's anymore.)
To purchase a physical set of miniatures, I probably have find a website I've never visited or even heard of before, give my credit card information to strangers, pay for shipping, and then wait for several days to see if I even like what I bought, all the while trusting people I've never done business with before to fulfill their promise to deliver a product to me. That's a series of big hurdles I have to clear before buying a physical product online, and any one of them is likely to cost the publisher a sale. If you want me to buy your product, make it easy for me to buy it, and let me have it now. Don't make me work for it, or wait for it, because I won't.
Then why does WOTC sell books instead of PDFs?
Major publishers sell books instead of PDFs for several reasons. First, in order to move the amount of product they must, the have to be in retail stores all the time. No one shopping in a retail store will settle for a PDF. Second, major publishers are selling books that are hundreds of pages long, and people are much less likely to print out (and bind, somehow) a 200-page book than one page of cardstock miniatures. Third, volume--the big players are selling thousands of units a month. With numbers like that, they can cost-effectively print overseas, cutting their cost per unit to a fraction of what it would cost to print a few hundred units in the US. Fourth, they have consumer awareness the indie publisher lacks--everyone with a television has heard of Dungeons and Dragons (thanks, Big Bang Theory), and everyone in the hobby has heard of Pathfinder. This allows them to reach the mass market--Wizards of the Coast makes their money selling a few large, expensive books to lots of tens or hundreds of thousands of people, many of whom are playing tabletop RPGs for the first time. Independent publishers make their money selling lots of different products to the same small group of people--those already in the hobby--usually at a lower price point. An independent publisher not only can't compete with WOTC at selling game books, he even can't get into brick-and-mortar stores to try.
Bottom Line: If you're not WOTC or Paizo, you should be selling PDFs, not physical products
Although the retail price-point of printable miniature PDFs is lower than that of physical pre-printed minis, the near-zero cost of goods for PDFs means the absolute profit per unit is the roughly the same, with far fewer barriers to sales. I don't have any figures to prove it, but I would bet money that any of the "major" PDF-based mini publishers--several of whom are active in this forum--probably sell far more units of each of their sets through OBS than publishers selling only physical paper miniatures, with far less hassle fulfilling orders (again, zero hassle, or close to it). Unless you can realistically expect to have your line stocked not just in a few specialty game and comic shops, but also in chain book stores, hobby stores, and discount stores nationwide, there is no compelling reason to manufacture and distribute physical products. And the piracy thing is simply not a worry at all.
Note: There is one place to get printed minis for a price I'd pay: the Pathfinder Pawns sets. The NPC Codex set, for example, costs about $30, for which you get 300(!) printed miniatures AND 25 plastic bases (5 large bases, 20 "regular" ones). At that price, they're charging about 10 cents per mini, and throwing in about $10 worth of bases (roughly compared to the cost of Litko bases) for free. So, $0.10 is the going rate for physical, pre-printed minis, AND I can walk into my local game store--whom I know, like, and want to support--and have them in hand in less than an hour. Compared to that, the $1.50-$2 that independent publishers are charging for similar products are getting killed, and they're making me wait several days to get them shipped to me.