GW profits

[Emperor Ming]

4 hours ago, Scribe said:

 

We are already there. They cannot keep everything in stock.

Absolutely 

 

and 3rd party retailers, it sometimes takes months now for them to get stock in when you place an order 

[gideon stargreave]

8 hours ago, Emperor Ming said:

Absolutely 

 

and 3rd party retailers, it sometimes takes months now for them to get stock in when you place an order 

Cries in MTO rogue trader 

[Dark Shepherd]

Just wait til its officially announced (if) the amazon deal is dead, the share price will go down so hard itd make Fulgrim blush

 

And also be well worth purchasing as it will rebound

[Waaagh?]

2 hours ago, Dark Shepherd said:

Just wait til its officially announced (if) the amazon deal is dead, the share price will go down so hard itd make Fulgrim blush

 

And also be well worth purchasing as it will rebound

 

There's zero reason to believe it is 

[Emperor Ming]

Hell would freeze over before gw reduced prices

[Dark Shepherd]

1 hour ago, Waaagh? said:

 

There's zero reason to believe it is 

I wouldnt say zero, wouldnt say 100% reason either, but theres rumours from good sources and a strange & ongoing lack of news about the deal

[Matcap86]

On 12/16/2023 at 8:39 AM, Dark Shepherd said:

Just wait til its officially announced (if) the amazon deal is dead, the share price will go down so hard itd make Fulgrim blush

 

And also be well worth purchasing as it will rebound

 

https://www.warhammer-community.com/2023/12/18/warhammer-amazon-contracts-signed-the-news-every-warhammer-fan-has-been-waiting-for/

 

That didn't age too great.

[Helias_Tancred]

On 12/7/2023 at 5:22 PM, Emperor Ming said:

Crazy prices will catch up with them eventually

 

How much is a 2k army now

 

£600ish? then paints, basing etc is easily another 100

 

Crazy

 

GW must assume Warhammer gamers are minted

 

I was playing a 1k game with a friend today and this was a topic of discussion. We are both single guys, not married, no kids (disposable income for our hobbies) and even we were talking about being tired of paying the high prices and both agreed they're getting close to hitting that price point of negative returns. I mean $60 USD for 5 marines with jump packs? C'mon. Or how fast prices rose over the previous few years?!?!

 

Getting into the hobby these days and having a collection where you can play 2k games with variety in your lists is *very* expensive these days, and increasingly cost-prohibitive for an ever increasing number of people to get into the hobby. 

 

Edited December 19, 2023 by Eilio Tiberius

[crimsondave]

I think their inability to meet demand mitigates any negative impact of lowered demand based on price.

[MegaVolt87]

3 hours ago, crimsondave said:

I think their inability to meet demand mitigates any negative impact of lowered demand based on price.

 

I very much agree with this. While it is expensive, as long as they make what I like to buy, they will still ultimately see at least some of my money vs none of it. If it wasn't for HH, I would have been almost out the door as it is, AoS only tangibly has my interest. It's smart the product range is diverse, I think they are in the right direction at least retaining existing customers at the moment. If the price won't really go down, the range needs to be kept in stock at a minimum definitely. 

[Stitch5000]

People talking about the prices being "significantly higher" makes me think said person is completely blinkered or ignoring any outside perspective available to them. 

I cannot think of a single hobby activity that isn't significantly more expensive today than it was 10 years ago. 

That said, I also get paid significantly more than I did. 

[Scribe]

2 hours ago, Stitch5000 said:

That said, I also get paid significantly more than I did. 

 

1. This may colour your perception.

2. When everything else has gone up as well, something gets cut, because not everyone is getting paid more than they did.

3. There is a point where a hunk of plastic is overpriced.

[Helias_Tancred]

12 hours ago, crimsondave said:

I think their inability to meet demand mitigates any negative impact of lowered demand based on price.

 

Thats a good point. Valid consideration. 

[Helias_Tancred]

3 hours ago, Stitch5000 said:

People talking about the prices being "significantly higher" makes me think said person is completely blinkered or ignoring any outside perspective available to them. 

I cannot think of a single hobby activity that isn't significantly more expensive today than it was 10 years ago. 

That said, I also get paid significantly more than I did. 

 

Prices do go up you're right,  but in the case of Warhammer 40k the issue is they've gone up so much + so quickly. Not 10 years, but 3, 4, and 6 years by 50% in some cases. What was $40 five years ago are now $60, etc.  And then starting price points today, for example the jump pack intercessors, 5 models are $60 USD. Where will it be in 3 years? $65 USD? 5 years? $70 USD?

 

Prices always go up but with GW it's the amount in many cases and how quickly they raised.  I'm not a professional economist but that usually makes me skeptical. 

[N1SB]

3 hours ago, EnsignJoker said:

I bought SIGNIFICANTLY more stuff from more of their game systems when the prices were lower. That fact also probably coincides with there being more stock available, but I doubt being able to buy it impacted how much I bought more than my desire to do so and ability to justify the cost. 

The question for me on that point becomes whether they really need these constant inflated prices to cover for their expenses, global politics, and overhead, or if they just simply want more money and are able to get it. 

 

A great question, a fundamental question, and there is something of a concrete answer.  I think you saw me say this long ago, but worth reminding.

 

Gross Profit Margin is the self-implemented benchmark that GW sets: 70%.  So like, say, a Combat Patrol costs $100, it cost $30 to make, $70 profit.

 

That represents what it costs just to make THAT box of minis, like fuel, plastic, labour...but not the designers nor the machine to make them.

 

So that arbitrary figure keeps GW, if not honest, at least consistent.  It's systematic.  You may consider it high (I do), but GW keeps it around there.

 

(I nearly waxed poetic into philosophical issues here, but the bottom line is, GW has this consistent, systematic standard it measures itself with.)

 

 

+++++

 

 

But the question also presumes there's something you don't know.  There IS something you don't know, I don't know, GW doesn't know.

 

It's what the prices of that plastic, that fuel, that labour will cost in the future.  GW kinda sets prices to stay ahead of that a little bit.

 

There's this scene in The Matrix trilogy where a French man (I think his name is The Frenchman) says, "Where others see chance, I see cost."

 

When you consider how many MEQ a weapon can kill, you don't just look at the weapon profile, you look at the Ballistic Skill of its wielder.

 

Chance IS a cost.  That's what is causing flux.  In the UK, energy costs are the biggest x factor.  They recently reopened their coal power plants.

 

(This isn't a political point, just that the UK doesn't have the same energy resources as, say, the US with oil or France with nuclear.)

 

 

+++++

 

 

Your point also reminded me of this economics professor.  Aside from having a good paying job, the nature of it means he's a pretty good investor, he's a multi-millionaire.  Yet every Sunday, he did those newspaper clippings for coupons to buy his groceries.  The little money he saved could Not have possibly justified the time he spent if you calculated his wages per hour, and he must calculated this out just subconsciously, but every Sabbath day...snip snip snip "what a savings!"

 

But later on, I started thinking, if this economics professor wasn't the type of personality to do this, he probably wouldn't have that mindset that made him so analytical with money that made him a great teacher.  It's just part of the package that makes him him.  But yeah, price sensitivity is a thing, for anyone.

[Karhedron]

On 12/7/2023 at 10:22 PM, Emperor Ming said:

Crazy prices will catch up with them eventually

 

You would think so but people have been making the same argument for the last 20 years and it hasn't happened yet. 

[Scribe]

18 minutes ago, N1SB said:

There's this scene in The Matrix trilogy where a French man (I think his name is The Frenchman) says, "Where others see chance, I see cost."

 

Merovingian.

[Noserenda]

Prices are weird over time, like, some things are still cheaper than when they were metal blisters i lusted after as a teen whilst other stuff has shot up wildly to the extent i cant imagine ever paying RRP for it. That said i saw a video a little while ago that went over a bunch of old catalogues and calculated the inflation on those things only to find out most stuff was pretty close in price effectively.

There is a very real problem in the world that wages arent rising at fast as costs but thats very much politics lol.

Some of it is very pertinent to GW though, energy prices in the UK went through the roof last year as well as a few "interesting" decisions by government that caused all kinds of mayhem that GW has to take account of, and as a public company they have a duty to keep increasing profits at any cost regardless of mitigating circumstances. 

Joy ;)