AG. wrote:
I'm sort of stunned that people are so paranoid. I cannot comprehend.
johnscott10 wrote:
Its because GW are the "almighty evil" that plagues us. Similar to EA. Pretty much I just see them as a business just like any other. They recieve alot of hate purely because they are the "big boys". Paranoia usually comes with hate.
I would definitely hesitate to say they are the all mighty evil. After all, i do still play their games
Look, whether or not you want to admit it, the sad reality is that companies do things that are sometimes underhanded, or can be construed as such, to sell more product. Ever wonder why movies make blatant product advertisement during the movie? every wonder why the coca-cola sign is just a little brighter red than the red background or jacket its sitting next to....its so it triggers you to go into the movie house and buy a ridiculous over sized coke, and spend 5.00 for it, where it costs the movie house about .36 cents to produce.
Someone said it earlier, if you want to sell more toothpaste, make the nozzle wider. Same with soda pop cans. does anyone remember when a can of soda didn't have a wide "mouth" on the can? I do. By opening the can, users would drink more than they realized because you could physically displace more soda with a single drink. A result, is that you sell more soda.
Lets understand something very clearly about sales and companies. companies don't change products unless they have a reason to. Changing over from one bottle to another is
EXPENSIVE for a company to do. There are all kinds of non-mitigated and translucent costs that are placed into the conversion cost. When you buy a bottle of
GW paint, you
AREN'T just buying the paint: you are paying for the development of a new bottle, the machinery to adapt their existing infrastructure to the new pots, the cost of the physical new pots, the cost of the person working in the factory, the lights and maintenance in the factory, the cost of shipping, labeling, and "finishing" the product (this process is normally called
market distribution) the cost of the warehouse to store it, the cost of the people to manage the infrastructure, and lastly, if you buy from a
GW store, you are paying the cost of their sales person to stand behind the counter and ring up your brand new pot of 4.00 (circa) paint.
All of these costs are extrapolated over the expected
TMS% of the product. (
TMS% is broken down as this:
Targeted Market Saturation: how many people will buy your product at the current price point. So if your product has a target market of say 100 people, target market saturation is the percentage of people who posess what is known as
"propensity" which is those people that have the means and WANT to buy your product. once you take away the
propensity from the target market, and compare that to the total amount you did sell, you will end up with your
TMS%, the total number of people who did to buy your product, vs the number who didn't.)
Now, why is this all important?
BECAUSE GW DOESN'T SELL PAINT TO EVERY PLAYER.
Knowing that, ask yourself this question: did
GW change their pots to benefit us so we would buy less with their new super awesome pot? Why would they voluntarily reduce their customer base with
propensity to buy? Are you going to buy more blood red knowing you already have a more than half full bottle at home? how about two bottles? If companies create products that are too good, they experience a loss in customers that shift from
"target audience" or
"target market" to
"propensity" base to come back and buy more from them. instead, what those companies end up doing is creating something called "
diminishing marginal utility" which is a process where two is not as useful as one.
let me explain this.
Using the blood red analogy from earlier, lets take a look at a few principals. One bottle of blood red is very useful. If you don't already have a red color, or if you want that specific color, then buying one immediately satisfies that need. What about two? if you posses no blood red, and you instead bought two bottles of it, is the second bottle really as useful to you right now as the first? the answer is no, as you can really only use, or there is really only a need to use one at a time. so the second bottle is pretty much pointless, until you run out, in which case, you become a customer with
propensity who will probably go buy the product, but until that happens, the second bottle just isn't that important to you.
now, its worth arguing that you are purchasing consumable products - that is products with a finite life span- however, even then, you can still experience
diminishing marginal utility based on the product selection and your use of it and how long it takes to go through a bottle of blood red. if it takes you 11 months to finally need to break out that extra bottle of blood red, than for the
lst 11 months, you have had
diminishing marginal utility in your consumable good.
SO,
GW is a company, like any other, and have an obligation to their shareholders: to remain profitable. now let me introduce another concept to any who are
STILL actually reading this:
Sales is an honorable position, and profit is not a curse word. Moreover, customers vote with their wallets. If
GW sells less paint because of their new designs, and feedback and
cr tanks and
CA% goes through the roof (
CR is
customer reception - what people think of your product,
CA is
customer availability percentage, the number of product you have vs the number of people who buy it) they know they need to change their product line, because people aren't buying their product. If
CR goes up and
CA goes down, then
GW knows they got it right.
How all of this ties together is this:
when you have a set amount of consumables, and companies like
GW don't really have much of an opportunity to expand their paint sales without drastically expanding other product line sales, they have to do SOMETHING to remain profitable. Companies have a few choices:
you can sell more of it by reducing the price, but really, were just getting back into
diminishing marginal utility here: why would i buy three bottles of blood red when all i need is one for the next few months -
-or-
you can reduce benefits and features in your product, thus creating a greater need to replace, and increasing demand.
now, this is where people normally try to argue the laws of
supply and demand. This is also where i laugh at you and tell you that the laws of
supply and demand have very little to do with sales, until supply reaches critical low, and even then, normally doesn't impact the selling price much.
point is, if anyone is still awake, is that
GW doesn't make a change in their product line, like ANY OTHER COMPANY in the world, if there is nothing to gain from it. They change their product line because there is an increased potential for earnings in doing so.
look at the standard pair of needle nose self locking pliers.
you call them vice grips.
the basic design of an actual pair of "Vice Grips" (vice grips is actually a sad tale, they have lost all brand recognition, meaning people dont recognize the name any more, like kleenex for "bathroom tissue") hasn't changed much in 70+ years. It hasn't had to. other than being bigger or smaller. Vice Grips haven't changed because to change them would be unnecessarily wasteful. it would require re-design and development from the ground up to accommodating a new product range, and there is no guarantee it would sell as well as the old one, so
WHY CHANGE? they a making a great profit now as a company, and changing would just cost them money, and there aren't enough customers with "
propensity" in their "
Target Market" to make changing their product useful or profitable.
they wont change.
GW on the other hand, saw a great way to contribute to their bottom line by making some minor product adjustments. It has obviously worked, and they will, continually over their product life span continue to make changes until their product is no longer held at the same value as other similar products and sales drop off.
Customers vote with their wallets.
my last note is this: i love
GW games and play them. I give credit where credit is due and that is seen throughout all my posts, specifically speaking about their price hikes, but when they need to be called out, i am not scared nor would i hesitate to do so. I am not a "Fan boy" nor am i a "Hater"