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yes and no.
there are examples of pricing that doesnt make any sense, and then again there are prices that seem reasonable. concidering what it costs GW to make plastics for instance, and the wide range of prices by compexity and weight, there is indications of 'hey this is cool bet we can get an extra 10€ out of it' but then again ther are examoles of standardized prices.

dogma wrote:

Grot 6 wrote:
They are marketing THE HOBBY and they are saying that there is nothing wrong with the pricing.

That's not premium pricing. Premium pricing would involve a deliberately high price vis a vis other, similar items manufactured by the same, or alternative corporation.

GW does not use a premium price strategy insofar as most of its miniatures are concerned. It does use premium pricing in its Forge World brand, and all of its 'official' hobby products.

I suppose you could argue that GW's models can be compared to other scale kits, but it seems to me that GW kits are sufficiently distinct as to represent a separate product.

That is premeum pricing, just not in the context that you wrote it and took one sentence out of my post and misconstrued it.

If you are going to do that, at least have the courtesy to post the whole thing and not twist what I wrote into something else entirely.

Put that sentence back where I wrote it and read it ALL the next time.

For premium pricing you have to be more expensive than your competition. They are not. They sell their models at or less than the cost of the vast majority of their competition. Get a scale model kit the size of a baneblade for 99$, you can get better and larger kits, but they are going to run you a pretty penny. Other direct competitors like privateer are equally as expensive, with almost no differentiation in pewter or plastic prices.

I think this was a vague question designed to elicit specific responses

It's, as they say, fungible. The problem is that their range is vast, and the answer varies from item to item. If you want to look at anything new that's been released in plastic, I'd say they both charge for and deliver a premium product - and clearly, the market can bear it.

I'm going with 'yes', based on the idea that Premimum Pricing is essentially the same as Willingness to Pay, an area that GW is increasingly exploring.

Nobody believes that it costs anywhere close to £150 to produce the Realm of Battle gameboard, but a lot of people (not me) have demonstrated a willingness to pay that much anyway.

Cue Goldswords and Costigors...

I dunno.

Theres a good argument (from the statements in the annual report) for the pricing to be considered premium but at the same time its standard fare, including how GW market their product (Try selling budget toilet paper and unbranded household chemicals and branded jewellery, same techniques and tricks are used).

I do not think that it is premium priced, more that GW are pricing at what they think they can realistically achieve/get away with.

If GW Is premium price what is fair price in the minatures market? Rhetorical, this cannot be answered.

Mr. Burning wrote:(snip)
If GW Is premium price what is fair price in the minatures market? Rhetorical, this cannot be answered.

On the contrary, the market answers this question every day.

Here is premium pricing in action.

http://www.amazon.co.uk/Sony-DVPNS718HB-1080p-Upscaling-Player/dp/B0027ED5Z4/ref=sr_1_9?ie=UTF8&s=electronics&qid=1263828024&sr=1-9

Sony DVD player costing £55.

http://www.amazon.co.uk/Sumvision-Phoenix-Premium-Upscaling-Player/dp/B0013EDUFE/ref=sr_1_12?ie=UTF8&s=electronics&qid=1263828024&sr=1-12

Sumvision DVD player with exactly the same specs but it costs £35.

Why is the Sony unit 57% more expensive? Because it is a Sony.

Will it give a better quality picture, lower power consumption or other benefits? Maybe.

Ouze wrote:

Mr. Burning wrote:(snip)
If GW Is premium price what is fair price in the minatures market? Rhetorical, this cannot be answered.

On the contrary, the market answers this question every day.

I was trying to get at that, but failed.

HI all.
Well I voted yes.
Simply becuse of the attitudes instilled in some GW customers.
I have had people refuse to play me because I had OOP minatures /other companies minatures.(They said they were NOT going to play someone without 'proper GW minatures'!

In my LFGS they HAD to stock GW brand scenery along side Railway Scenics range.
And some customers payed far more for GW branded stuff, simply because of the lable!

GW plc imply /infer thier products are superior,( and some store staff lie about the suitablilty of cheaper products.)And price them at 2 to 12 times the RRP of similar product.

Thats premium pricing in my book.

insaniak wrote:

fellblade wrote:All I have to do is look at the 118 ml squeeze-bottle of Games Workshop PVA glue, and know that I can buy a quart of the exact same PVA glue from a hardware store for a lower price, to realize that Games Workshop is employing the premium pricing strategy.

I don't think GW's hobby supplies are targeting the premium market so much as the convenience market.

People (by and large) don't buy GW glue because they think it's any better than other glues on the market. They buy GW glue because they're buying GW models, and buy the glue while they're there rather than going somewhere else.


Whilst it's true that there are some people who think that GW's hobby stuff is superior, or 'better' for use with GW models (particularly amongst younger customers, who are more likely to swallow it when a staff member tells them that GW glue is 'specially formulated' to be better with their models) I would put that down more to the perception that GW, as a hobby company that makes great miniatures, would know what they are doing when it comes to tools, glues and paints... but that perception would still be there is GW hobby supplies were reasonably priced. It's not a result of them being expensive, which is what the premium pricing mould is about.

I don't buy the 'convenience' argument. GW could easily sell their GW-branded PVA glue for a much lower price, and it would be just as much of a convenience to the customer.

GW premium prices against themselves. From the Space Wolf release, I can get 4 sprues worth of plastic to assemble a 10 man pack with plenty of left over bits for $35. For $50, I can get 3 sprues of plastics to form a 5 man pack of terminators with a smaller amount of bits left over.

Both kits were released at the same time, so the Space Wolf Pack set is not benefiting from some new manufacture technique. The plastic is the same, as far as I can tell from casual inspection.

The difference lies in a value that loses meaning without the gaming experience. Similar could be said of luxury items and their premium price.

Fellblade, what I think Insaniak means is that it is "convenience pricing" in that GW is trying to be a one stop shop. While you're buying sand and static grass, you could buy the PVA glue right in front of you or you could drive to home depot and buy it for cheaper there.

Just like buying candy on a whim at the gas station/convenience store, you could buy it in bulk for way cheaper elsewhere or you could pick it up right now.

Gas stations/convenience stores/GW feel that customers are willing to pay a higher rate for the "convenience" of buying that after-thought item on site rather than traveling elsewhere for it.

Zoned

Grot 6 wrote:
That is premeum pricing, just not in the context that you wrote it and took one sentence out of my post and misconstrued it.

If you are going to do that, at least have the courtesy to post the whole thing and not twist what I wrote into something else entirely.

Put that sentence back where I wrote it and read it ALL the next time.

No it isn't. The rest of your post was nothing more than you repeatedly misapplying the term 'premium pricing' to a series of examples; none of which made much sense.

I didn't twist your words, you used them incorrectly.

dogma wrote:

Grot 6 wrote:
That is premeum pricing, just not in the context that you wrote it and took one sentence out of my post and misconstrued it.

If you are going to do that, at least have the courtesy to post the whole thing and not twist what I wrote into something else entirely.

Put that sentence back where I wrote it and read it ALL the next time.

No it isn't. The rest of your post was nothing more than you repeatedly misapplying the term 'premium pricing' to a series of examples; none of which made much sense.

I didn't twist your words, you used them incorrectly.

Pfft. I can see how this is going to go...

Nice try, what did that take you to think of as a retort, maybe a whole two seconds?


I am using the Wikki term. Maybe you have another? My examples are Real, maybe you can show me where they ARE NOT? Go on then...

Show me how GW is not pricing thier products by, "keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price.[1] The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction."


And for a second time, don't cut and paste a post to make yourself look clever when your not even discussing the topic at hand.

I don't think GW is using their price to impress people about it's quality. So I voted no, they are not using Premium Pricing.

Hey grot, maybe in the real world your opinion isnt always right?

Let's all stick to the topic not the other users.

TheFirstBorn wrote:Hey grot, maybe in the real world your opinion isnt always right?

Maybe, maybe not.

But the real question is how are those 50.00 terminators doing for you? Plastic? Only 5 for 50.00? But they are some heavy hitters, so they must be worth it!!!

My line in the sand comes when people take my post and change it around to try to make it into something else entirely.

Kinda like-


" Hey grot, maybe on the internet your opinion is always right! " (You see what I mean?)



On that note, I take my leave from this one.

I'm not too proud to say Sorry if it got heated. Sorry if you got offended, and Sorry if my point was misconstrued.

I'll step back off of this one and try to see it from another way, because maybe I'm the one missing something about Wikki's definition.

^ But people are not buying the Terminators "because they are $50, so that must mean they are good" (= premium pricing).

They are buying the Terminators because they are good in the opinion of the buyer, and they happen to cost $50, which might be rediculous but they are still willing to spend it (= not premium pricing).

There is a subtle difference.

As far as the miniatures go I do not think GW is using premium pricing, but for some of the tools and other items it can at least be argued.

For example take the GW plastic cutters, priced 12,50 (euro). I bought similar cutters at a hardware store for 4,95 and they work great.

So does GW put that price tag on their Citadel cutters with the intention to make customers think "these are 12,50 and named Citadel, so they must be better than the 4,95 ones" ?

Or do they just put that price tag on and think "let us put these in our stores and see if these fools are too lazy to go to another store to buy a cheaper alternative" ?

I agree with you point TBD if not your precise logic. People are not buying Terminators because they alone are a good product. People are buying them because they want to use them in their SM army. They're doing this because they think 40k is a good line of products generally (i.e., they have or are building an SM army). There has still been no convincing example of GW using premium pricing. The closest we've seen is the talk about their PVC glue but that could be explained by the fact that they are selling small quantities and so forfeiting bulk discounts.

But the real question is how are those 50.00 terminators doing for you? Plastic? Only 5 for 50.00? But they are some heavy hitters, so they must be worth it!!!

Diamonds have no inherent worth and are actually relatively common. Yet they are some of the most expensive things you can find in the ground. Cost and worth are not natural concepts, they are constructs.

Show me how GW is not pricing thier products by, "keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price.[1]

Sure, I'll do it.


49.50$


49.99$

One is three times the size of the other and comes with enough parts spare to practically make another model. The other comes with a trading card. Prices are entirely relative to the field of competition. Cost and worth is inherent to that which people are willing to spend. To be premium GW has to be MORE expensive than it's competition. It is not.

End of the damn story.

@The people claiming PP and Infinity is just as expensive as GW , one has to take into consideration who set the pricing standard that way first.

LunaHound wrote:@The people claiming PP and Infinity is just as expensive as GW , one has to take into consideration who set the pricing standard that way first.

No, they really don't as it has absolutely no bearing on the conversation.

ShumaGorath wrote:

LunaHound wrote:@The people claiming PP and Infinity is just as expensive as GW , one has to take into consideration who set the pricing standard that way first.

No, they really don't as it has absolutely no bearing on the conversation.

Well for someone that tells me i need lessons on economics , i'll let you read this
and figure out why it exactly has everything to do with the conversation.
Im sure you'll find this interesting as its in english this time.

Companies that are able to use price setting techniques to align pricing with customers’ willingness to pay are naturally in a better position to compete for business. Unfortunately, most companies don’t have the means to predict how customers or segments will respond to certain prices or policies. By default, business managers resort to using general pricing methodologies such as cost-plus or competitive matching. While these approaches can be effective in certain situations, applying them across the entire portfolio will result in sub-optimal returns.

And a few side questions to go along.
When PP first started out , pricing their products , do you think they are so confident in their game that they'll price them that high?
Of course they arnt that confident , yet the price is still set that high. What do you think gave them the confidence to do so?

Where exactly in that paragraph is a price increase for maximum profitability while maintaining an alignment with a customers upper willingness to pay also an indicator of premium pricing? Even then, even if it were, games workshop would not be premium because they have several low end entry products which heavily undercut the competition and themselves while they are simultaneously only the middle ground for model pricing within the field. They are not premium pricing by any definition.

You formed an opinion now you're looking for facts to back it up. It's backwards.

ShumaGorath wrote:Where exactly in that paragraph is a price increase for maximum profitability while maintaining an alignment with a customers upper willingness to pay also an indicator of premium pricing? Even then, even if it were, games workshop would not be premium because they have several low end entry products which heavily undercut the competition and themselves while they are simultaneously only the middle ground for model pricing within the field. They are not premium pricing by any definition.

You formed an opinion now you're looking for facts to back it up. It's backwards.

Actually its not backwards as you are the one that tried to validate GW's pricing by comparing it with PP's warjack.
Im simply showing you that it is infact important to determine , whether PP was merely setting a price after GW's pricing standard.

Well Luna, aside from the position that shama has so agressively tried to defend , look at the vote count for your answer. 80 out of 106 vote yes they 'think' GW is. there is your answer.

Hawkins wrote:Well Luna, aside from the position that shama has so agressively tried to defend , look at the vote count for your answer. 80 out of 106 vote yes they 'think' GW is. there is your answer.

TBH Hawkins , im really not interested in debunking what people defend , nor do i ever find myself to be right all the time.
Im just curious to why is shuma so aggressive towards me in discussions. I dont know if its the nature on how discussion goes , or there is something about me that...

Contrary to what many people believe , this thread is not an attempt to flame / troll GW as some have already msged me.
I simply want to see how the different types of GW customer ( including myself ) view GW.

All that tells is us 80 of 106 people have no clue what the heck "premium pricing" is and voted just thinking "Hurr, GW's too expensives!"