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The gaming community is'nt huge, that I understand, but if their prices were lower, im positive more people would get into the hobby, therefore increasing sales to about the same profit as before. Sure molds cost a crapload of money, but they last in some cases years, im sure in that time they were paid for and then some. So why keep prices so high? Many of my friends had to give up on the hobby and sell their prized armies because they couldn't go anywhere with them. Sure gw will always have sales, but only beacuse they are one of the only companies that offer their kind of products. If a new better company opened up and had a great game with low prices, I would be super inticed to give up on gw. So what do you think??

Because there are enough people who will pay their prices. They whine and complain then open up the wallet every time.

Ive given up on GW for anything but the occasional purchase. Its not just the prices, I really dont care for the current 40k rules either, and Im not into WHFB.

The thing is, there is no proof that lowering prices would get enough people into the game.

Think about it, if GW has a profit margin of 50% on a $40 box, and they lower it, they are losing $5 from their $20 profit, or 25%. Now it will take them 33% more people buying the product to stay even.

Do you think a price drop of 12.5% will make 33% more people get into the game?

I didn't think so.


Keep in mind these numbers are not official, but they show a point. Even if you disregard profit margin, I don't think that lowering prices would gain enough new players to make up for it.

Ever heard of payroll? Games Workshop is not a molding company, there are literally thousands of people who make this game happen on a daily basis. Those molds don't create themselves, sculptors make models, then shrink them down. Then industrial designers figure out how to carve these things into pieces that can be reliably molded. Then there' customer service, etc...

I was in my FLGS today and found some old posters, dating from around 3rd edition. You know what the list price on a Predator was back then? $32.50. And it was expensive back then, too. And made half of metal. And people still bought it.

Long story short: if you want a cheaper game, play solitaire, cards are pretty inexpensive. Otherwise, save up your extra cash and buy the stuff. If no one was buying the minis/books/whatever, there would be no Games Workshop.

GW's margin on a box is 76%.

Most of their revenue is spent on running the retail chain.

Well then lower the starter kit (black reach, iob) people walk into my local gw and ask how to get into the hobby, the manager then says, "buy this awsome starter kit for 99.00$!" then the people say, I'll think on it with a frown and walk out. Im sure if you did that it would help intice more people into the hobby.

Because they can?

Dudes, I mean this topic, again? It's covered a bizillion times before and unfortunately no one seems to be giving any real info. Ask any business major. Or better yet, search the web, you will find decent explanations. It's your wallet, say no lol.

Because this has been asked and answered in 50 other threads. Read those.

Midnightdeathblade wrote:Well then lower the starter kit (black reach, iob) people walk into my local gw and ask how to get into the hobby, the manager then says, "buy this awsome starter kit for 99.00$!" then the people say, I'll think on it with a frown and walk out. Im sure if you did that it would help intice more people into the hobby.

I think that if people are balking at the $99.00 for the Black Reach box,then they are not people that are going to put any appreciable amount of money into an army,to be honest. The Black Reach box is still an insanely good deal for the mini's you get. A Dreadnaught and a 5-man Terminator squad alone are $95 bucks,although the Black Reach versions don't come with any options. Black Reach is an insanely good deal and a great start for any new player looking at building Orks or Space Marines.

The price of entertainment options accross the board has gone up in recent years,be it video games[recent console game hike from $50 to $60 accross the board],movies,tickets to sporting events,etc. I just really don't see GW as being any different.

ph34r wrote:The thing is, there is no proof that lowering prices would get enough people into the game.

Think about it, if GW has a profit margin of 50% on a $40 box, and they lower it, they are losing $5 from their $20 profit, or 25%. Now it will take them 33% more people buying the product to stay even.

Do you think a price drop of 12.5% will make 33% more people get into the game?

I didn't think so.


Keep in mind these numbers are not official, but they show a point. Even if you disregard profit margin, I don't think that lowering prices would gain enough new players to make up for it.

You don't have to get more people into it to make up for the difference. Dropping the price by 12.5% may simply get their current players to buy more.

Hell, I've walked by some of the new kits like the Sanguinary Guard wanting to buy it, but can't justify the cost... and I don't even play Blood Angels. If they lowered it by $5-10, I may pick one up.
The plastic Gargoyles box released a year ago were amazing. I got two if only because it was acceptable value. I didn't need them. I already had 24 converted Gargoyles. The opposite happened with the Raveners Boxed set. You can't justify the price of the Raveners set.

get a better job so you can afford them. easy.

I dunno what to tell ya OP. It is what it is. I enjoy the game, and the friends i have made. In the end, I have gotten more out of it, than the $$ I spent.

My own bitchery to add to this - I just started Tau. Figured I'd better check on Kroot Hounds, see how expensive they were.

$7/model (pre-discounts)

Chaos Warhounds:
$2.48/model (pre-discounts)

There is no f'ing way being in metal adds $4.52 to a model's cost. That's just stupid, charging that much. Which is why I don't spend 'new' money on models - I sell old ones to buy new ones. There is no way GW's stuff is worth what they charge. Just because some half-wit out there is willing to buy Kroothounds @ $7 a pop, does not mean I have to. Ebay for Chaos Warhounds, here I come!

Short answer: Because the market will bear it.

Long answer: beeeeeecaaaauuuuseeee ttthhheeee maaaarrkkketttt wiiiilll beeeaaarrrr iiiiitttt.


Automatically Appended Next Post:

Manticore2009 wrote:Dudes, I mean this topic, again? It's covered a bizillion times before

The last time this was discussed here was Jan 27th. By Dakka's rules, there is nothing prohibiting this discussion as often as 10 to 11 times per year, depending on how frequently it is responded to. If you find this topic odious, you should probably just avoid reading and responding to such threads.

Mad4Minis wrote:Because there are enough people who will pay their prices. They whine and complain then open up the wallet every time.

Judging by the repeated trends we see in GW's financial statements, I'm not sure that's true.

Ouze wrote:Short answer: Because the market will bear it.

Long answer: beeeeeecaaaauuuuseeee ttthhheeee maaaarrkkketttt wiiiilll beeeaaarrrr iiiiitttt.

I lol'd.


King Ghidorah

I've been watching the stocks of other companies GW Should know that the economy is getting a whole lot better. Though I don't know why they raised prices in australia,

Midnightdeathblade wrote:The gaming community is'nt huge, that I understand,

Membership numbers to various sites gives comparable amounts to other hobby sites, so I'd say that it's as big as many/most hobbies in the world.

We just had a discussion on this a few weeks ago, and as stated there, compared to many other hobbies(toy collecting, paintball, airsoft, scrapbooking), it's no more, and often times LESS, expensive.

Hobbies are expensive, get over it.

JOHIRA wrote:

Mad4Minis wrote:Because there are enough people who will pay their prices. They whine and complain then open up the wallet every time.

Judging by the repeated trends we see in GW's financial statements, I'm not sure that's true.

True, Ive noticed a bunch of people getting away from GW stuff.

Me, I love a lot of their minis. I wont get into WHFB simply because I dont have the time needed for an army that large. As far as 40k goes...I dont like the current rules, at all. So for the time being Ill just be picking up a mini here and there for the fun of building it.

Overall I do think GW prices are a bit steep, but its pretty low on the list of things keeping me out of their games.


Right now Im getting back into battletech, necromunda, and some board games like Mantics Dwarf Kings Hold.

1) Because people will pay it, and to whoever is setting the prices, these prices optimize their profit.

2) I hate to rehash this argument, but think about a new video game. It cost you about 60 bucks, and you'll play it for what? A month or so? Then you'll be bored with it and go buy the new awesoem game coming out. On the other hand, I spend 50 bucks on a Leman Russ, and assume 10 bucks for the glue and paint, then I can use that model for years. GW has a high cost to get intot he hobby, but once you're in it doesn't cost nearly as much to stay in. (Yes, it costs a lot to get in and stay competitive, but it doesn't cost a lot to stay in the hobby.)

look at older posts, this post is always the same, hate seeing the same post over and over again. use the search option if you want to see peoples opinions of gw prices. hope not to see this post again, it's so negative. if you dont like the prices then dont buy the porduct simple, start playing badminton or something!!!

Midnightdeathblade wrote:The gaming community is'nt huge, that I understand, but if their prices were lower, im positive more people would get into the hobby, therefore increasing sales to about the same profit as before. Sure molds cost a crapload of money, but they last in some cases years, im sure in that time they were paid for and then some. So why keep prices so high? Many of my friends had to give up on the hobby and sell their prized armies because they couldn't go anywhere with them. Sure gw will always have sales, but only beacuse they are one of the only companies that offer their kind of products. If a new better company opened up and had a great game with low prices, I would be super inticed to give up on gw. So what do you think??

Im assuming you are younger then 18 and dont have any major financial commitments?

Try working, paying rent, running a vehicle, etc and stilll paying for the hobby-and no I'm not complaining.

As others have said its not that expensive compared to other hobbies (you might spent £50-£100 on a night on the beer, or £50 just going to the cinema)

Buy your models from ebay, car boot sales, trade for things. Your idea that a tiny drop in price would bring that many people into the hobby sounds a touch strange to me.

Thats just my thoughts anyway

Try remember that not only does GW sell what seems to be overpriced minis, but they alow you to, regardless of whether you bought a GW model in store or elsewhere, to freely come in and use their tables for gaming/painting. While yes the over pricing doesnt cover it but its just something to think about.

I havent been aboard Dak very long, but I see these topics come up all the time. Its a free Market and a capitalists economy they are operating in. In my opinion (and I will assume theirs too) GW makes the best miniatures and has created one of the most successful tabletop games. When your stock is high, why would you decrease your prices? I would love to see them drop prices on their merch....$50 for 5 tiny little terminators is borderline robbery, then again, as reluctant as I am...I buy them and so do the rest of you. There is no reason why a White Dwarf should be pennies shy of $10 per copy, but it is and people pay those prices too. As long as their margins are profitable they are going to continue pricing things the way they do. the price of plastic has increased by almost 50% in the past 2 years, but still that is no reason to inflate the prices like they have.

Midnightdeathblade wrote:The gaming community is'nt huge, that I understand, but if their prices were lower, im positive more people would get into the hobby, therefore increasing sales to about the same profit as before. Sure molds cost a crapload of money, but they last in some cases years, im sure in that time they were paid for and then some. So why keep prices so high? Many of my friends had to give up on the hobby and sell their prized armies because they couldn't go anywhere with them. Sure gw will always have sales, but only beacuse they are one of the only companies that offer their kind of products. If a new better company opened up and had a great game with low prices, I would be super inticed to give up on gw. So what do you think??

Quite simple really. The oligarchs who run the Games Workshop have an appetite for pr0n stars and cheap blow that make Charlie Sheen look like a sour-faced prude. They are the Illuminati, and when not feeding their carnal desires with huge piles of cash, they are working to destablize the world economy. Over the last few years they've come close to succeeding in their mission, and by buying their plastic crack at wildly inflated prices you are in turn destabalizing both the US greenback and the euro simultaneously.

Well, that, and the fact that as a niche hobby that requires a love of fantasy/sci-fi, modeling, painting, rolling dice, math and leaving the house to interact with likeminded individuals of the same species, they have a limited market to sell to. The last requirement almost did me in, but I soldier on, and work hard to feed my addiction.

ph34r wrote:The thing is, there is no proof that lowering prices would get enough people into the game.

Think about it, if GW has a profit margin of 50% on a $40 box, and they lower it, they are losing $5 from their $20 profit, or 25%. Now it will take them 33% more people buying the product to stay even.

Do you think a price drop of 12.5% will make 33% more people get into the game?

I didn't think so.


Keep in mind these numbers are not official, but they show a point. Even if you disregard profit margin, I don't think that lowering prices would gain enough new players to make up for it.

The profit margin is closer to 500%. At least off the website, they probably get 3 or 400% on retail.

The problem comes is that GW is a publicly traded company, and the market reacts poorly to companies that don't show more profit (note, making a profit isn't enough, you have to make more profit than last year).

So GW ups the prices in order to get more profits in the short term, long term it means sales go down because new people are scared away by the high cost of entry (GW sales are down now in fact, and if I understand the reports right, they've actually been falling for a while on a per game basis but this was hidden by the introduction of the Lord of the Rings game).

Eventually it'll destroy the long term profitability of the company, but the people that own the company (IE, the stockholders) don't make any money (or possibly even lose money) if profits don't go up in the short term.

The above applies pretty much whenever a company makes short sighted decisions, the growth based economic model the world runs on has serious issues (especially in light of the stagnant wages for the last 30 years).

There is a lovely essay floating around somewhere on the internet where someone dissected Games Workshops profit margins on an individual kit...I'll see if I can find it.

Found it!

http://www.fightingtigersofveda.com/roarseconomics.html

ChrisWWII wrote:There is a lovely essay floating around somewhere on the internet where someone dissected Games Workshops profit margins on an individual kit...I'll see if I can find it.

Thats pretty insightful and spot on for those of you out there majoring in economics. The only thing I dont like is that 98% of his figures are speculation based off of internet searches. I dont recall once hearing him quote or use a legitimate statistic or price directly from GW other than the retail cost of the LR. I suppose it can give you a very rigid idea of the marginal profits for GW.

There is a lovely essay floating around somewhere on the internet where someone dissected Games Workshops profit margins on an individual kit...I'll see if I can find it.

I actually know what you're talking about: the kit in question was a Land Raider. GW collects less than $10.00 profit from a 62 dollar sale.