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In 2022/23 we
invested £17.3 million in the studio (including software costs) with a further £6.7 million spent on tooling, the majority of which was for
new plastic miniatures.
so anybody want to check what sprues are copyright 2003 ? we can work out GW's cost per sprue.....
but all jokes aside it's actually an interesting figure with tooling being significanly less expensive than the investments in the studio (wonder if that includes staff salaries etc or just 'stuff' for them to work with/in)
only 136,000 WH+ subscribers is a bit surprising given the amount of pushing they've been doing. Then again they haven't been pumping out content very consistently
In 2022/23 we
invested £17.3 million in the studio (including software costs) with a further £6.7 million spent on tooling, the majority of which was for
new plastic miniatures.
so anybody want to check what sprues are copyright 2003 ? we can work out GW's cost per sprue.....
but all jokes aside it's actually an interesting figure with tooling being significanly less expensive than the investments in the studio (wonder if that includes staff salaries etc or just 'stuff' for them to work with/in)
It very likely includes salaries. But it might also include such things as toilet seats without reading any of the report.
To continue to be fair to our 6,500 trade partners and to ensure our stock allocation is appropriate, we don’t carry high quantities of new release products on our own online store - so it will nearly always sell out.
To continue to be fair to our 6,500 trade partners and to ensure our stock allocation is appropriate, we don’t carry high quantities of new release products on our own online store - so it will nearly always sell out.
!!!
Bit of a double edged sword.
Doesn’t help with irritating scarcity overall, but at least FLGS aren’t getting the poopy end of the stick.
I'm surprised licensing income has dropped, I thought if anything that would have increased but maybe that's because we've had hype for stuff that hasn't released yet (Space Marine 2)?
StraightSilver wrote: I'm surprised licensing income has dropped, I thought if anything that would have increased but maybe that's because we've had hype for stuff that hasn't released yet (Space Marine 2)?
Guess it depends on the contract. If there’s an initial upfront licensing fee, and then residuals, it will fluctuate a fair amount if a Big Ticket Game is still in development.
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Growth
We are planning to add a further 30 new stores: 16 in North America, 11 in Europe and 3 in Japan.
So it looks like they still think their own stores are the way forward.
Honestly looks like they are about to sink a lot of money in to profitless stores. They are opening a store in Galway, which tbh sounds ridiculous considering whenever I've passed by the Dublin store its been totally empty. Personally I think they are about to over extend their reach again, but then they are a billion pound company and I'm just a hobbyist so I don't know about these things
Growth
We are planning to add a further 30 new stores: 16 in North America, 11 in Europe and 3 in Japan.
So it looks like they still think their own stores are the way forward.
The best way to keep having new customers is to have a stable and faithful entry point. That's why GW is the strongest on miniature market : they are the only ones investing in their own stores on long term, and that's why they keep being on the top while their "competitors" are fated to be second at best.
That's certainly their most smartest move so far. It's good they don't have a CEO dumb enough to stop investing in that field (or "reducing the costs" like Privateer Press stupidly did with their own entry point).
Growth
We are planning to add a further 30 new stores: 16 in North America, 11 in Europe and 3 in Japan.
So it looks like they still think their own stores are the way forward.
Honestly looks like they are about to sink a lot of money in to profitless stores. They are opening a store in Galway, which tbh sounds ridiculous considering whenever I've passed by the Dublin store its been totally empty. Personally I think they are about to over extend their reach again, but then they are a billion pound company and I'm just a hobbyist so I don't know about these things
They’re quite ruthless about closing non-profitable stores though. And they’ve been so for probably around a decade or more at this stage.
Growth
We are planning to add a further 30 new stores: 16 in North America, 11 in Europe and 3 in Japan.
So it looks like they still think their own stores are the way forward.
Honestly looks like they are about to sink a lot of money in to profitless stores. They are opening a store in Galway, which tbh sounds ridiculous considering whenever I've passed by the Dublin store its been totally empty. Personally I think they are about to over extend their reach again, but then they are a billion pound company and I'm just a hobbyist so I don't know about these things
I know nothing about running a big, profitable business.
I could make some good guesses about how to crash one though.
Besides, it's not because there's no one when you go in a store that it's automatically non profitable or has no effect on recruiting new blood. People often underestimate the value of having a dedicated store for the promotion of games in an area. That's why you have good games from other companies get forgotten in the previous years : they didn't have that. Independant retailers follow their own interests that can be in conflit with a game company's (not counting they won't advertise something they don't like), while clubs can often have a "closed group" mentality (meaning they're not especially focused on recruiting new customers at all costs) - so there's the limitation of only supporting them (even if it's "the cheapest").
This message was edited 1 time. Last update was at 2023/07/25 13:53:07
Yeah, I have no insight into GW's retail, but I remember my friend working in an Apple store that seemed perpetually empty even to him, and yet it stayed in the black with four employees, a manager, and a high profile location in the most expensive shopping center in the city.
No one knew how that worked, but they didn't complain either.
Isn't Amazon video having major issues after failures like Ring of Power?
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From my super limited understanding, a License can in itself create Licenses to related to its own product.
Example being the LOTR films. The movies were made under a License from Tolkien Estates. And as products and tie-ins would be based on the look of that film and its actors, that created separate product sub-licenses.
Given the ongoing important of merchandising to any film or show’s financial success, that could be a major sticking point, especially with who gets what percentage, whether GW or Amazon has the final say on a given product, different rights for different areas of the globe and so on and so forth. Add in that GW has a strong, established look for its products and setting, and there’d be a need for further negotiations as to how far, if it all, a show or film can divert from that.
Consider the Judge Dredd movies. Neither of those had entirely faithful Judge uniforms, and all three takes (comic, Stallone, Urban) have or had their own tie-in merch.
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With how protective GW is of their IP and what Amazon's track record is, those negotiations might take a while.
And even after negotiations close, the project may be stuck in development hell for years and years. No one should be holding their breath waiting for it.
Growth
We are planning to add a further 30 new stores: 16 in North America, 11 in Europe and 3 in Japan.
So it looks like they still think their own stores are the way forward.
Honestly looks like they are about to sink a lot of money in to profitless stores. They are opening a store in Galway, which tbh sounds ridiculous considering whenever I've passed by the Dublin store its been totally empty. Personally I think they are about to over extend their reach again, but then they are a billion pound company and I'm just a hobbyist so I don't know about these things
I've never quite understood their strategy for store locations in the UK, the rest of the territories are far less saturated and obvious where to place them. For years, even post online sales, they had stores in places like Scarborough and Torquay, which had crap economies and not exactly massive catchment areas. It'd be a really interesting case study to see where they decide to place these stores and just how many actually make profit. I guess 1 man stores does make it substantially easier, so long as the rent isn't prohibitive.
Mad Doc Grotsnik wrote: From my super limited understanding, a License can in itself create Licenses to related to its own product.
Example being the LOTR films. The movies were made under a License from Tolkien Estates. And as products and tie-ins would be based on the look of that film and its actors, that created separate product sub-licenses.
Given the ongoing important of merchandising to any film or show’s financial success, that could be a major sticking point, especially with who gets what percentage, whether GW or Amazon has the final say on a given product, different rights for different areas of the globe and so on and so forth. Add in that GW has a strong, established look for its products and setting, and there’d be a need for further negotiations as to how far, if it all, a show or film can divert from that.
Consider the Judge Dredd movies. Neither of those had entirely faithful Judge uniforms, and all three takes (comic, Stallone, Urban) have or had their own tie-in merch.
Is an interesting video explaining just how messed up the LOTR licence got and how complicated these things can get. I can't honestly see GW allowing Amazon a sub-licence for anything other than things heavily restricted, otherwise there's the potential of cannibalising their own licencing income and given their control freak tendencies, I doubt they'd just accept a lump sum to let Amazon have more control.
This message was edited 1 time. Last update was at 2023/07/25 15:49:57
With how protective GW is of their IP and what Amazon's track record is, those negotiations might take a while.
And even after negotiations close, the project may be stuck in development hell for years and years. No one should be holding their breath waiting for it.
I'd have to go back and look, but I believe Amazon is being used as a distributor. GW already has a studio on board.
This message was edited 1 time. Last update was at 2023/07/25 15:35:21
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GW (as other chains) may well open something if they get a good deal on the rent (or other support from a local council or development agency) so a Galway store (or similar) may make sense under those circumstances
and as Doc Grotsnik said they're quite happy to close (or move) stores that don't do what they think they should in terms of sales/footfall
Also depends exactly how they calculate running costs.
Compared to a FLGS, a GW store isn’t exactly buying its own stock. Indeed since 2008/2009ish at least, stock levels are set centrally and automatically replenished as stuff is sold.
The stores are usually just off the main shopping street. Not completely central, but not squirrelled away up a side street. This means typically lower lease costs, whilst still be fairly well positioned for foot traffic.
They also act as hubs. If one kid gets into it, their friends will have a nice, central, clean, knowledgable hub to go learn more. With their parents. And their parent’s wallet(s).
And, provided the manager and/or staff took their training onboard, you get a very standardised experience of support, lessons and yes sales pitch, with the former two usually leading to the latter being successful.
Super simple example? I helped a kid paint their Legion of the Damned in the Epsom store. As we finished using one colour, it was put to one side, with subsequent pots joining the line. End of the session, his Mum picked him up, and I made a sale of the paints used and a couple of brushes. Was only £30 or so, so not megabucks. But you do that enough times during the week and it soon adds up. Indeed doing so saw the various stores I worked at hit target week in week out.
Not all such hobby lessons had the pay off. Sometimes they just weren’t buying. Other times there was nothing to buy. Example there? The last metal iteration of the Hive Tyrant. Being a dab hand at pinning I’d help the young’uns out with the legs. Yeah I might sell a pin drill, but that’s about it. But….it did mean the kid had a strongly assembled model ready for painting, which should lead to another model or unit being sold in the future.
And…that’s how you do it. Big sales are easy, because that customer was pretty much set on making it. But creeping the Average Transaction Value? That takes skill, subtlety and practice. Spesh as you need to know when someone just won’t be upsold and so to back off, lest you lose the whole transaction.
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OrlandotheTechnicoloured wrote: GW (as other chains) may well open something if they get a good deal on the rent (or other support from a local council or development agency) so a Galway store (or similar) may make sense under those circumstances
and as Doc Grotsnik said they're quite happy to close (or move) stores that don't do what they think they should in terms of sales/footfall
From a quick look on the store finder it looks like they've only got 2 GW stores in Ireland - Dublin and Cork. Galway covers the west coast for them. There's also a couple of third-party stores there, maybe they've been seeing them moving plenty of stock and want to get more closely involved?
OrlandotheTechnicoloured wrote: GW (as other chains) may well open something if they get a good deal on the rent (or other support from a local council or development agency) so a Galway store (or similar) may make sense under those circumstances
and as Doc Grotsnik said they're quite happy to close (or move) stores that don't do what they think they should in terms of sales/footfall
From a quick look on the store finder it looks like they've only got 2 GW stores in Ireland - Dublin and Cork. Galway covers the west coast for them. There's also a couple of third-party stores there, maybe they've been seeing them moving plenty of stock and want to get more closely involved?
Or a dip in those sales, an uptick in direct sales, or them just taking a bit of a gamble for the sake of better coverage.
If it’s the two former? If your FLGS sales are down, but regional Online sales are up? That’s could be a sign of opportunity available. Lots of different things there.
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Growth
We are planning to add a further 30 new stores: 16 in North America, 11 in Europe and 3 in Japan.
So it looks like they still think their own stores are the way forward.
They showed a 22% increase in retail sales. So definitely working,
Plus marketing it gives. Amount of visibility it gives over being just minor part of game store has it's own value. Generally for game stores miniature games aren't bread and stock so marketing isn't that important regarding 1 miniature game. Gw store obviously different.
Especially in todays climate where a lot of 3rd party game stores are MUCH more keen to push customers into cardgames which generate them far more profit and far more regular steady profit than wargames. It's much easier to sell a MTG player "oh another pack of cards" than it is a wargamer more paint or anything else
Plus even if a 3rd party is pushing wargames, its got a lot of choice out there. GW pushing only their product in their stores is a big boon for them and, agreed, one of the big reasons that not only are they maintaining their biggest position in the market; but that they are very often the gateway to the whole wargame hobby for many younger people.
Heck if I mention "Warhammer" to almost anyone they've at least heard of it; or heard of space marines or "those expensive models" or such. Even those who are totally not into geek stuff in the least know of GW.
They do not know of any other firm in the market. Even at their best Privateer Press wasn't even close to that kind of market exposure.
GW has made highstreet stores work in an environment that is hostile to them existing. Heck one big thing that likely helped is that GW doesn't open them with a loan so when things get tight GW can just close them down and reduce that expense. There's no huge loan sitting on top of the investment.
I do agree, in some regions a GW store might not work, but we know they use 3rd party sales data and such to estimate where best to open a store based on rate of sales.
Licencing being down isn't a shock, it might be that the money from things like Total War is going to dry up unless they can secure a new deal with CA for more games (CA could risk going into WW1 with 40K or do Age of Sigmar or even a "specialist" game of Old World based on the new game GW is going to push out). Considering how well the Warhammer games have worked for both GW and CA, I'd be shocked if they don't find some way to continue working together.
Also there’s no franchising, so whilst it may seem bizarre on the High Street, they have complete control over where their brand is seen.
I’m sure there’ll be other companies doing more or less the same, but I can’t think of any off the top of my idiot head.
Certainly GW seem to be able to have their stores survive where FLGS might not. Of course there is the vital thing that GW clearly know how to setup and get a store on solid ground. FLGS….without being rude, negative or derogatory, it varies.
As I’ve said before, my local FLGS is clearly making its money. But with just a few lessons from GW’s approach I reckon they could do better business. Despite being the local gaming hub? They don’t even have a Notice Board. Which means whilst I’d love to run a Necromunda or Vampire campaign, there’s nowhere in their store for me to seek players.
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