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We were discussing production costs, not retail price.

*Knock,knock*McFly!!

From GW plc own fiscal reports.
Gross profit, 76%.
This means the ALL costs except RETAIL and DISTRIBUTION are less than 25% of the retail price.

And for plastic minatures the raw material makes up 4% of the manufacturing cost...(From my friend who works in GW Nottingham.)

SO a £20 box of minatures cost less £5 to design develop process and manufacture .(Including ALL associated costs for ground rates, wages,equipment /building depriciation etc.)

And 20 pence of this covers the cost of the plastic.

Normal distribution costs appx 10% of the turn over.

GW plc spend over 50% of their gross profits on running B&M stores...

Draw you own conclusions...

No, I wasn't discussing product costs at any point.


Automatically Appended Next Post:

Lanrak wrote:
From GW plc own fiscal reports.
Gross profit, 76%.
This means the ALL costs except RETAIL and DISTRIBUTION are less than 25% of the retail price.

And for plastic minatures the raw material makes up 4% of the manufacturing cost...(From my friend who works in GW Nottingham.)

SO a £20 box of minatures cost less £5 to design develop process and manufacture .(Including ALL associated costs for ground rates, wages,equipment /building depriciation etc.)

And 20 pence of this covers the cost of the plastic.

Normal distribution costs appx 10% of the turn over.

GW plc spend over 50% of their gross profits on running B&M stores...

Draw you own conclusions...

I agree that the bunkers are probably pointless and contribute minimally to attracting new customers.

Amaya wrote:Good post. Really sick of people assuming that material costs are the only expensive of a product.

Amaya wrote:No, I wasn't discussing product costs at any point.

Really?

You can understand my confusion.

 azreal13 wrote:

 Amaya wrote:
Strong assumption. Do you have any evidence for that?

No, but what I do have is a sound knowledge of how businesses work and a reasonable working knowledge of the likely logistical costs etc..

Note we are talking actual costs per unit, with all relevant costs to get a product from design to manufacture to the shelf. If you factor in other business costs not directly related to that, such as retail staff wages or other utilities not related to manufacture then the waters get muddier.

But the actual cost to get a model from the brain of a designer to the shelf in a shop is very small when averaged per unit.

A box of approximately 30 models (or 4 sprues), for companies without the GW buying power, generally costs (for manufacture/distribution/box art/printing/overhead and mold amortization) around $0.30-$0.60/sprue fully burdened. The type of model DOES NOT MATTER (a box of SM terminators cost just as much as a box of regular Space Marines). GW is selling a typical troop box with 10 models for almost $30, and some other (like the new WoC Forsaken) at a ridiculous $50 for what is around $3-$4 in fully burdened cost.

Take a look at Wargames Factory: 30 28mm models (American Infantry on four sprues) for $19.95, or Warlord Games 20 28mm Roman Legionnaires for $32, or Perry Miniatures (the same Perry's from GW) 44 28mm Confederate Infantry (10 sprues) for $28. How can a smaller company, that has higher direct mold amortization per spruce than GW, be able to for substantially less than GW? Warlord Games is the most expensive of this bunch, yet they are still almost half the price of GW (at least compared to the troops). How can GW even begin to justify some of the recent absurd pricing such as $50 for 10 Forsaken models (a normal troops choice) or $58 for a SINGLE troll?

Right, material costs are the only direct cost of a product. Keep telling yourself that you understand accounting.

Direct costs and indirect costs all affect product pricing.

 Amaya wrote:
Right, material costs are the only direct cost of a product. Keep telling yourself that you understand accounting.

Direct costs and indirect costs all affect product pricing.

Pricing yes. Production costs (which my responses were predicated on, down to some less than clear posting by yourself) not so much.

Here is another one to add fuel to the GW is insane with their pricing fire.

Tell me how you would explain a rationalization for this.

Let's start with GW many times confirming that Chaos is one of the most popular armies for Warhammer and Ogre Kingdoms is one of the least popular. We can establish a ground that Chaos models will outsell Ogre Kingdoms ones, so by definition of GW smacking a price premium because a model will sell less should apply more to the Ogre Kingdoms models than the Chaos ones.

So, let's do some comparisons:

Army Books (both 96-pg. full color hardbound) - Chaos $49.50 and Ogre Kingdoms $44.50
40mm Named Character Foot Model - Chaos: Throgg $58 and Ogre Kingdoms: Golgfag Maneater $40
Large Monster Model: Chaos Slaughterbeast $85 and Ogre Kingdoms Giant $53.75
Chariot: Chaos Chariot $40 and Ogre Kingdoms Ironblaster $33.

Folks, plain and simple this pricing practice, when you sell the more popular at much higher prices than other products of similar make up in your own product line, is called PRICE GOUGING. People can see it a million miles away and GW is getting worse with it almost every new release cycle now. Picture the above items sitting on a shelf in your FLGS right next to each other. How would you explain to a new player why the Chaos stuff, of similar size and quality is so much more than the Ogre Kingdoms stuff?

 Amaya wrote:
It's really cute that you think employee wages/salary won't effect the price of the product and claim to have any understanding of real world business.

The main cost is Machines for production.. What is bad about employing people is that they are a constant cost that goes up, Salary encreases hiring more people etc. What many buisnesses fail to understand though is that a good sale force can compensate for its cost by making people buy more from the company.

I personaly think its a good move to move down to 1 employee per store for GW. The next step after that is starting to shut down stores. With any luck this will happen in mass in the next few years. GW really needs to die, They show no signs of wanting to change their ways. And me and my friends cant play broken rules. The gaming experince is what is fun for like 90% of them. They care nothing about painting, modeling or reading lore. As a fun note we have been playing Warmachine a few years now and nobody has read any fluff/lore. Nobody cares... So speaking from personal experince, GW has nothing to offer us, Last GW model I bought was at 50% discount at a local hobby store that were selling of their stock back in 2010..

More people should just move on and vote with their Wallets. I saw someone in this thread say he would not buy warmachine because his local club dident play it. You need to change that my friend.. Everyone here needs to start advocating other games instead.. I really dont understand this love for GW, I never have.. I have never really liked their games, not even in the 90s... The only game they have made that I really thought was fun to play was Warhammer Fantasy Roleplay. That was a superb game. Many of the boardgames they made throught the years have also been alot of fun to play. But their miniature Hobby with 40k and Fantasy has just been gak.. And I'm only talking about rules here and playing the game. PPs Warmachine/hordes is far superior product, Flames of War is better, malifaux is far better. Most historical games have more solid rules.

If GW wants to sell toys to kidds let them. But Sir's you are men so go out and convince your delusional friends that its time to QUIT on the GW hobby and start playing Grown up games instead. GW is not COOL it's for childrean and smelly Nerds, dident some person at GW say that????

 Amaya wrote:
It's really cute that you think employee wages/salary won't effect the price of the product and claim to have any understanding of real world business.

They don't. Not in the way you're trying to phrase it. Walmart, Safeway, Target and your FLGS all function by selling a product they don't manufacture. A GW store is following their economic principle of being a middle man. It does not matter who is running the store, as long as the cash flow is positive based on the store's margins.


Automatically Appended Next Post:

 Nucflash wrote:

 Amaya wrote:
It's really cute that you think employee wages/salary won't effect the price of the product and claim to have any understanding of real world business.

The main cost is Machines for production.. What is bad about employing people is that they are a constant cost that goes up, Salary encreases hiring more people etc. What many buisnesses fail to understand though is that a good sale force can compensate for its cost by making people buy more from the company.

I personaly think its a good move to move down to 1 employee per store for GW. The next step after that is starting to shut down stores. With any luck this will happen in mass in the next few years. GW really needs to die, They show no signs of wanting to change their ways. And me and my friends cant play broken rules. The gaming experince is what is fun for like 90% of them. They care nothing about painting, modeling or reading lore. As a fun note we have been playing Warmachine a few years now and nobody has read any fluff/lore. Nobody cares... So speaking from personal experince, GW has nothing to offer us, Last GW model I bought was at 50% discount at a local hobby store that were selling of their stock back in 2010..

More people should just move on and vote with their Wallets. I saw someone in this thread say he would not buy warmachine because his local club dident play it. You need to change that my friend.. Everyone here needs to start advocating other games instead.. I really dont understand this love for GW, I never have.. I have never really liked their games, not even in the 90s... The only game they have made that I really thought was fun to play was Warhammer Fantasy Roleplay. That was a superb game. Many of the boardgames they made throught the years have also been alot of fun to play. But their miniature Hobby with 40k and Fantasy has just been gak.. And I'm only talking about rules here and playing the game. PPs Warmachine/hordes is far superior product, Flames of War is better, malifaux is far better. Most historical games have more solid rules.

If GW wants to sell toys to kidds let them. But Sir's you are men so go out and convince your delusional friends that its time to QUIT on the GW hobby and start playing Grown up games instead. GW is not COOL it's for childrean and smelly Nerds, dident some person at GW say that????

For the love of God, insulting your target audience doesn't win an argument or make your argument better.

Edited by AgeOfEgos

Nucflash, not funny, not cool.

Just report it and move on.

edit: This thread is about to get gutted.

 Surtur wrote:

 Amaya wrote:
It's really cute that you think employee wages/salary won't effect the price of the product and claim to have any understanding of real world business.

They don't. Not in the way you're trying to phrase it. Walmart, Safeway, Target and your FLGS all function by selling a product they don't manufacture. A GW store is following their economic principle of being a middle man. It does not matter who is running the store, as long as the cash flow is positive based on the store's margins.


Automatically Appended Next Post:

 Nucflash wrote:

 Amaya wrote:
It's really cute that you think employee wages/salary won't effect the price of the product and claim to have any understanding of real world business.

The main cost is Machines for production.. What is bad about employing people is that they are a constant cost that goes up, Salary encreases hiring more people etc. What many buisnesses fail to understand though is that a good sale force can compensate for its cost by making people buy more from the company.

I personaly think its a good move to move down to 1 employee per store for GW. The next step after that is starting to shut down stores. With any luck this will happen in mass in the next few years. GW really needs to die, They show no signs of wanting to change their ways. And me and my friends cant play broken rules. The gaming experince is what is fun for like 90% of them. They care nothing about painting, modeling or reading lore. As a fun note we have been playing Warmachine a few years now and nobody has read any fluff/lore. Nobody cares... So speaking from personal experince, GW has nothing to offer us, Last GW model I bought was at 50% discount at a local hobby store that were selling of their stock back in 2010..

More people should just move on and vote with their Wallets. I saw someone in this thread say he would not buy warmachine because his local club dident play it. You need to change that my friend.. Everyone here needs to start advocating other games instead.. I really dont understand this love for GW, I never have.. I have never really liked their games, not even in the 90s... The only game they have made that I really thought was fun to play was Warhammer Fantasy Roleplay. That was a superb game. Many of the boardgames they made throught the years have also been alot of fun to play. But their miniature Hobby with 40k and Fantasy has just been gak.. And I'm only talking about rules here and playing the game. PPs Warmachine/hordes is far superior product, Flames of War is better, malifaux is far better. Most historical games have more solid rules.

If GW wants to sell toys to kidds let them. But Sir's you are men so go out and convince your delusional friends that its time to QUIT on the GW hobby and start playing Grown up games instead. GW is not COOL it's for childrean and smelly Nerds, dident some person at GW say that????

For the love of God, insulting your target audience doesn't win an argument or make your argument better.

Hoo sorry I thought Games Workshop players loved to get abused , and get called smelly Nereds and have their wallets robbed with constant price increases.. My Bad hahaha. I must have missed something reading through this thread... Because that is exacly how GW is treating them and they LOVE IT....

NucFlash, whilst I (broadly) agree with your position, your 'confrontational' language doesn't engender 2 way communication. I think there's the potential here for an interesting discussion about GW's place in the wider hobby, but it keeps getting sidetracked by people somehow feeling threatened and getting defensive, and posts like yours fan the flames.

Jesus nucflash. Again?

Please change your record, it seems every post you write is deliberately trying to insult people. Either start posting in a mature manner or just stop posting. You're like a bad smell yourself, not even having you you on ignore gets rid of you completely.

This thread has reached the end of its useful life.