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mercer wrote:A indies best prices are 80% - 90% profit margin from retail. Got the cost prices here for the different price levels for indies.

Please tell me what products in this market have those margin?

rich1231 wrote:

mercer wrote:A indies best prices are 80% - 90% profit margin from retail. Got the cost prices here for the different price levels for indies.

Please tell me what products in this market have those margin?

Nothing that I purchase as new product has anywhere near that sort of numbers. Overall COG, (Cost of Goods, where {Sales - COG = Gross profit})for most hobby/comic/game stores is somewhere between 50% and 85%, depending on product mix, sell through, discounting, and the scale of the business. Gross profit of 50% to 15%.


No idea what your talking about with A indies best prices are 80% - 90% profit margin from retail

The Plastic Surgeon wrote:

Kilkrazy wrote:
GW don't do any marketing.

The great bulk of the money goes in management and retail overheads.

The retail store IS their marketing.

What other company has 60% of their annual expenses on marketing?
It seems that the Store=Advertising model works in the UK. Not so much in the US. Shut down all except the most profitable US stores, keep the UK ones open, make more money.
I'm actually disappointed that GW got the Hobbit license; it will create another 'LOTR bubble' which hides the declining state of GW overall :(, keeping management ignorant and raising prices for longer.

When I say no marketing, I mean no marketing outside their own venues. My local Chinese takeaway does more marketing than that.

GW of course, try to maintain the idea that they are wargaming, so naturally they cannot be seen in wargaming magazines, at wargaming events, and so on.

I should think the store=advertising model is more important in the USA than UK. GW games spread by demonstration and participation. The UK seems to have more clubs and players at home, while the US players seem to rely on local shops for a venue. Therefore new players are more likely to be exposed to GW games outside shops in the UK.

That ought to make the shop an important tool for GW in the USA.

rich1231 wrote:

mercer wrote:A indies best prices are 80% - 90% profit margin from retail. Got the cost prices here for the different price levels for indies.

Please tell me what products in this market have those margin?

G.W products or model market? If you mean G.W then all models, not the books.

mikhaila wrote:
Nothing that I purchase as new product has anywhere near that sort of numbers. Overall COG, (Cost of Goods, where {Sales - COG = Gross profit})for most hobby/comic/game stores is somewhere between 50% and 85%, depending on product mix, sell through, discounting, and the scale of the business. Gross profit of 50% to 15%.


No idea what your talking about with A indies best prices are 80% - 90% profit margin from retail

You continue to be one of the best posters in DD. Great insight.

Privateer Press doesn't have retail stores, do they? Certainly not a chain if they do. And they are constantly growing! Their Press Ganger program basically trains up an individual to act as a Retail Store on the go in terms of introducing new people to the product. All you need is a local gaming store. LGS would have a much better chance of surviving if companies didn't mark up their retail so high and leave such a huge margin so that online disputers can undercut brick and mortar.

If memory serves GW used to have a program similar to "Press Gangers" called "Outriders" that worked wonders in the few cities close to where I grew up. Two guys organized events and tourneys, set stores up with demo armies and new terrain and kept the hype constantly mounting! Two guys- and GW paid them in the occasional kit.

Whatever the two sides of this age old argument is- there is one inevitable conclusion.

Somethings got to change.

mercer wrote:

rich1231 wrote:

mercer wrote:A indies best prices are 80% - 90% profit margin from retail. Got the cost prices here for the different price levels for indies.

Please tell me what products in this market have those margin?

G.W products or model market? If you mean G.W then all models, not the books.

Are you confusing margin with discount?

NobleSeven wrote: LGS would have a much better chance of surviving if companies didn't mark up their retail so high and leave such a huge margin so that online disputers can undercut brick and mortar.

Somethings got to change.

??? Wow, I so disagree with this statement. You are actually encouraging GW to cut retail prices, and take the difference away from stores in the form of less margin? And stores will be better off somehow? I'm sure someone will trot out the old "make it up in volume what you lose in profit per item" gem. That simply does not apply to local game stores, with local clientels, for a niche market. Works great for groceries, clothing, or for online sellers with no overhead.

Please, don't be so helpful. Someone from GW UK might be listening and decide to do to the US retailers what they have done to UK retailers. They have less discount, no access to Direct Only product, and don't get the support US retailers get. We get what we have because of the volume of sales done by LGS in the US. Cut the profit margin to the north american stores, stores will dump GW and you'll end up with a system like the UK.

If GW were to knock a big chunk off my profit margin, I'd respond by knocking a big chunk of stock off my walls, dumping the gaming tables, and putting in more racks of boardgames and graphic novels, so I'd be able to pay my rent. Currently GW sells to US brick and mortar stores at 45% off retail. At 35% off retail, most retailers dump product lines as not worth the capital investment, space in the store, and employee time. There are several discussions going on right now on retailer forums about why certain products are not being ordered at all, because of lower discount.


Automatically Appended Next Post:

mercer wrote:

rich1231 wrote:

mercer wrote:A indies best prices are 80% - 90% profit margin from retail. Got the cost prices here for the different price levels for indies.

Please tell me what products in this market have those margin?

G.W products or model market? If you mean G.W then all models, not the books.

You have bad information. Not even close to reality.

Corrode wrote:

mercer wrote:

rich1231 wrote:

mercer wrote:A indies best prices are 80% - 90% profit margin from retail. Got the cost prices here for the different price levels for indies.

Please tell me what products in this market have those margin?

G.W products or model market? If you mean G.W then all models, not the books.

Are you confusing margin with discount?

What you on about discount? G.W stuff to indies have 90% ish profit margin ex VAT on the best price band. Lowest is about 20% ex vat.


Automatically Appended Next Post:

mikhaila wrote:

rich1231 wrote:

mercer wrote:A indies best prices are 80% - 90% profit margin from retail. Got the cost prices here for the different price levels for indies.

Please tell me what products in this market have those margin?

Nothing that I purchase as new product has anywhere near that sort of numbers. Overall COG, (Cost of Goods, where {Sales - COG = Gross profit})for most hobby/comic/game stores is somewhere between 50% and 85%, depending on product mix, sell through, discounting, and the scale of the business. Gross profit of 50% to 15%.


No idea what your talking about with A indies best prices are 80% - 90% profit margin from retail

* Sigh, it's not that hard is it. Land Raider costs £20 ish for independent that's about 80% maybe 90% ex vat profit margin to G.W's retail prices.

Hmmm who to believe - the two respected and successful FLGS owners and retailers or some random internet guy? Hmm decisions, decisions....

mikhaila wrote:

mercer wrote:

rich1231 wrote:

mercer wrote:A indies best prices are 80% - 90% profit margin from retail. Got the cost prices here for the different price levels for indies.

Please tell me what products in this market have those margin?

G.W products or model market? If you mean G.W then all models, not the books.

You have bad information. Not even close to reality.

Really? Is that why the cost price matrix is sitting on my PC with price bands C-A laid out for the entire G.W range. I've got the pricing structure from G.W direct for independents right here. So is G.W suppyling bad information about their own cost prices? I don't think so. I'll show you reality as I've got the file here.


Automatically Appended Next Post:

filbert wrote:Hmmm who to believe - the two respected and successful FLGS owners and retailers or some random internet guy? Hmm decisions, decisions....

Do you want the spreadsheet from G.W I have to prove myself to some no body over the internet? Also factor in at least one of these guys appears to be from the U.S costs maybe different.

you are talking about markup, not gross margin.