8th Ed. Games Workshop increased prices again?

[Lingbei]

GW hasn't understood this. Start-up costs for resin were high, so they bumped up prices which reduced sales. This is especially bad because once a model is designed, they can keep making it very cheaply for years and years while the PS3 will only get about 5 years before it is rendered obsolete by the next gen stuff. They should have kept prices the same or reduced them because long term their costs will be much lower, this would have enabled more sales and maybe a bit longer before the line was profitable, but it would have definitely got there.

I completely agree. I would go out and buy more of the finecast stuff and the SoM monsters if they were cheaper. I feel if they did this they would have more sales and will probably make more profit in the long run.

 

[BEEGfrog]

GW hasn't understood this. Start-up costs for resin were high, so they bumped up prices which reduced sales. This is especially bad because once a model is designed, they can keep making it very cheaply for years and years while the PS3 will only get about 5 years before it is rendered obsolete by the next gen stuff. They should have kept prices the same or reduced them because long term their costs will be much lower, this would have enabled more sales and maybe a bit longer before the line was profitable, but it would have definitely got there.

I completely agree. I would go out and buy more of the finecast stuff and the SoM monsters if they were cheaper. I feel if they did this they would have more sales and will probably make more profit in the long run.

They missed another trick with this. If they had amortized the cost of the switch to finecast over a longer period, then they could have capitalised the investment and made it appear in their accounts that they were more profitable this year while increasing volume to boost other market indicators as well.(amortized=spreading the cost over time/multiple items)

Our problem is that GW view is that little Johnny has only a fixed number of birthdays and Christmasses per year and they get to sell one big item per pressie giving day and little Johnny's pester-power can easily cope with a 10% price hike two or three times a year.

GW's problem is if Mantic et al ever get cool and Johnny's pester-power switches away from GW.

 

[Arli]

Our problem is that GW view is that little Johnny has only a fixed number of birthdays and Christmasses per year and they get to sell one big item per pressie giving day and little Johnny's pester-power can easily cope with a 10% price hike two or three times a year.

GW's problem is if Mantic et al ever get cool and Johnny's pester-power switches away from GW.

That sums it up quite nicely!