Phayse wrote:If you have, say £40 a month to spend, you're probably only going to spend that amount. If you want more for that money, it isn't going to happen. It's too big a risk for any company to drop prices when they'd be giving you more, but only recieveing the same amount of money in return.
You are ignoring an important point here:
1. It is possible for
GW to have increased price beyond the spending limit of its customer.
2. It is possible for
GW to have increased price beyond the psychological spending limit of its customer - this can be a funny thing... as something as low as a $5 difference can make or break that self-justification for purchasing.
Example:
Recently, I was looking at the Storm Raven model. It is
IMHO very ugly, and the discussions on Dakka made me want to convert it into something better looking.
Disclaimer: It is incompatible with my non-space-vampire-space-men...
Disclaimer part 2: I have around 5000 points of non-special-space-men. Non-special-space-men that need flying BAWKSES they can't ride in.
Not knowing the price - in my mind, I was really hoping that it was priced around $35-45 CDN, as I wanted 2 or 3, just for "cool points" in
Apoc. Knowing
GW, I figured it'd be closer to $60 - but I would probably still break down and buy one to kit-bash for a display. $60 was the absolute limit I would pay for it.
GW exceeded all my expectations by making it $80. I puttered around the store heeing and hawing to myself, as I really wanted to kit-bash the model - but I couldn't break that $60 value that I had set for this particular kit. $65, in my mind was a bit overpriced, $70 was definitely overpriced, and $80 was in my mind, completely out of line!
If I could use it in a game, and it was a proven to enhance gameplay, with substantial gnashing of teeth I think
might be able to bring myself to spend $70, but at $60+, buying multiples on a whim would be out of the question.
So, using the 76% profit formula:
At $45, they'd make $25/model, and they would have sold me, 2 - possibly 3, netting $50-$75 profit.
At $60, they'd make $40/model and they would have sold me 1, netting $40 profit.
At $80, they'd make $60/model, but didn't sell any to me, thereby netting $0 profit, (actually, NEGATIVE profit in a brick and mortar store, as the product sits on the shelf tying up capital and taking up valuable display space.)