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![[Post New]](/s/i/i.gif) 2022/12/12 01:21:44
Subject: Re:Update on independent stores following GW terms change
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Fresh-Faced New User
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Soo will this apply to UK companies only as I heard or are EU, US and AUS shops affected as well ?
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![[Post New]](/s/i/i.gif) 2022/12/12 05:58:18
Subject: Re:Update on independent stores following GW terms change
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Speed Drybrushing
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pleasestopit wrote:Soo will this apply to UK companies only as I heard or are EU, US and AUS shops affected as well ?
Not sure but the three places I buy from in Australia haven't said anything
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Not a GW apologist |
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![[Post New]](/s/i/i.gif) 2022/12/12 06:57:12
Subject: Update on independent stores following GW terms change
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Gore-Drenched Khorne Chaos Lord
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JWBS wrote:So +6% trade translates to around 3.5% rrp (though since most buyers try to pay below retail, real cost will be slightly more than this), and cost to any retailer choosing to absorb it, as a percentage of their profit will depend on operating costs as a whole. Regardless, no one needs worry about being gouged by third party sellers, the market will presumably adjust and result will at worst be a 3% price increase (?)
The two examples so far are a 5% and 6%, it's not enough to call it gouging I don't think, but it's the lack of honesty about why or how they got to those numbers. It's the sort of slightly shady, crappy practice people would blame GW for doing.
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![[Post New]](/s/i/i.gif) 2022/12/12 10:57:57
Subject: Update on independent stores following GW terms change
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Longtime Dakkanaut
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Where's the lack of honesty?
We know (because everyone is reporting it) that GW are charging them 5-6% more (on average - it will vary from item to item) but not increasing the RRP.
Therefore they need to reduce the discount they offer to the RRP.
Maybe this will result in them making a few percent more (i.e. costs from GW rise 4.2% in RRP terms, but their discount is down 5-6%) - but then these shops have to eat too. Their staff presumably want some sort of rise in a world of 10%+ inflation.
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![[Post New]](/s/i/i.gif) 2022/12/12 11:16:15
Subject: Update on independent stores following GW terms change
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Foxy Wildborne
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Agreed.
And thanks to Azreal13 for adding VAT into the calculations for even more accuracy.
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The old meta is dead and the new meta struggles to be born. Now is the time of munchkins. |
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![[Post New]](/s/i/i.gif) 2022/12/12 11:25:51
Subject: Re:Update on independent stores following GW terms change
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Owns Whole Set of Skullz Techpriests
Versteckt in den Schatten deines Geistes.
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Rolsheen wrote:Not sure but the three places I buy from in Australia haven't said anything
One of the things said very early on with this news that it was, in-part, due to the dismal performance of the Australian market *, so I hardly think that (further) fething over retailers in Oz would be in their best interests.
*Whoda thunk that charging us** 40% more than most other countries would backfire...
**This likely includes the Kiwis as well.
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![[Post New]](/s/i/i.gif) 2022/12/12 11:40:46
Subject: Update on independent stores following GW terms change
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Grizzled Space Wolves Great Wolf
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Tyel wrote:<snip> ...but then these shops have to eat too. Their staff presumably want some sort of rise in a world of 10%+ inflation.
Yeah, I think this is a crap move from GW. Maybe an increase in RRP would have made more customers cry, but instead they're trying to keep customers buying the same amount and/or shift sales from independents to their own sales channels by taking their increase in cost and palming it off to independents. Instead of just raising the RRP by a couple of percent, they're cutting quite a lot more into the margins of independents, who supposedly also have increased costs currently.
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![[Post New]](/s/i/i.gif) 2022/12/12 11:41:36
Subject: Update on independent stores following GW terms change
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Not as Good as a Minion
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but if you don't sell enough you need to increase the profit from the sales that remain
also this is just adapting the inflation, GW is not more expensive, but everything got more expensive
and if you would have bought more GW would not have needed to increase the prices to maintain their profit
it is all on you not GW, they have done everything they could
/s
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Harry, bring this ring to Narnia or the Sith will take the Enterprise |
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![[Post New]](/s/i/i.gif) 2022/12/12 11:45:15
Subject: Update on independent stores following GW terms change
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Inspiring SDF-1 Bridge Officer
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kodos wrote:but if you don't sell enough you need to increase the profit from the sales that remain
also this is just adapting the inflation, GW is not more expensive, but everything got more expensive
and if you would have bought more GW would not have needed to increase the prices to maintain their profit
it is all on you not GW, they have done everything they could
/s
GW is more expensive, though, because they are continually raising prices with each new release ^^.
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This message was edited 1 time. Last update was at 2022/12/12 11:45:47
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![[Post New]](/s/i/i.gif) 2022/12/12 11:47:28
Subject: Update on independent stores following GW terms change
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Foxy Wildborne
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If you keep only buying stuff that still has Warhammer Fantasy packaging it's actually quite affordable
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The old meta is dead and the new meta struggles to be born. Now is the time of munchkins. |
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![[Post New]](/s/i/i.gif) 2022/12/12 11:49:16
Subject: Update on independent stores following GW terms change
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Thermo-Optical Hac Tao
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lord_blackfang wrote:If you keep only buying stuff that still has Warhammer Fantasy packaging it's actually quite affordable
Unless it’s Tomb Kings.
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![[Post New]](/s/i/i.gif) 2022/12/12 12:11:49
Subject: Re:Update on independent stores following GW terms change
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Neophyte Undergoing Surgeries
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pleasestopit wrote:Soo will this apply to UK companies only as I heard or are EU, US and AUS shops affected as well ?
This is only for Uk companies, according to my GW account manager.
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![[Post New]](/s/i/i.gif) 2022/12/12 12:59:26
Subject: Update on independent stores following GW terms change
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Gore-Drenched Khorne Chaos Lord
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Tyel wrote:Where's the lack of honesty?
We know (because everyone is reporting it) that GW are charging them 5-6% more (on average - it will vary from item to item) but not increasing the RRP.
Therefore they need to reduce the discount they offer to the RRP.
Maybe this will result in them making a few percent more (i.e. costs from GW rise 4.2% in RRP terms, but their discount is down 5-6%) - but then these shops have to eat too. Their staff presumably want some sort of rise in a world of 10%+ inflation.
Which is all good and well but tell people that's what you're doing and why. If you're getting more profit per sale than before to cover additional operating costs, most customers with any sense of loyalty will respect that and continue to shop there. Instead throwing it at the feet of "nasty GW making us earn more off your sales", which honestly is a dangerous move anyway, just outline it, give examples so dumbasses like me aren't running numbers on forums.
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![[Post New]](/s/i/i.gif) 2022/12/12 13:00:50
Subject: Update on independent stores following GW terms change
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Longtime Dakkanaut
London
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It is an interesting move. Hopefully GW will be able to track if this reduces the number independent sellers and if that decreases the customer base and gives a window of opportunity to other ranges.
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![[Post New]](/s/i/i.gif) 2022/12/12 13:54:28
Subject: Re:Update on independent stores following GW terms change
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Not as Good as a Minion
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H.B.M.C. wrote: Rolsheen wrote:Not sure but the three places I buy from in Australia haven't said anything
One of the things said very early on with this news that it was, in-part, due to the dismal performance of the Australian market *, so I hardly think that (further) fething over retailers in Oz would be in their best interests.
*Whoda thunk that charging us** 40% more than most other countries would backfire...
**This likely includes the Kiwis as well.
PS: I read the source for the low performance of Australia some time ago, it was within the GW report and stating that Australia because of Covid restriction and Lockdowns there, being the only region with decline in sales in the last year
so no, it has nothing to do with the different prices, but may I ask why your lockdowns were so different to the rest of the world that sales declined while others increased?
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Harry, bring this ring to Narnia or the Sith will take the Enterprise |
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![[Post New]](/s/i/i.gif) 2022/12/12 14:06:19
Subject: Update on independent stores following GW terms change
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Dakka Veteran
South East London
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I mentioned this earlier in the thread but probably the reason for this being UK only is to cover some of the increased warehouse costs imposed by the incompetent Tory Government....
https://www.theguardian.com/business/2022/nov/17/uk-warehouse-operators-criticise-business-rates-tax-rise
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"Dig in and wait for Winter" |
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![[Post New]](/s/i/i.gif) 2022/12/12 14:19:21
Subject: Update on independent stores following GW terms change
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Fresh-Faced New User
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kodos wrote:but if you don't sell enough you need to increase the profit from the sales that remain
also this is just adapting the inflation, GW is not more expensive, but everything got more expensive
and if you would have bought more GW would not have needed to increase the prices to maintain their profit
it is all on you not GW, they have done everything they could
/s
I kinda of laughed, since i've seen people straight up excuse GW's price increase exactly like this without the sarcasm. I mean their profit margin is insane and the only reasons we saw increases is because they want to keep those margins. Just look at the Hachette releases, some of them are giving away models for "free" almost. It's their choice of course to keep going with the trickle price increases since there are people who will excuse this type of behavior. I wouldn't really be bothered if all of the price increases from GW resulted in salary increases for employs (at least to a small degree).
But each price increase has an excuse, covid, supply chain problems, brexit, my shoelace untied yesterday while walking... it's kinda funny but sad at the same time. Not to mention during those times, it would of been a golden opportunity to sell codex/rules/campaign expansions as digital copies citing both those problems and being more environmentally friendly. Still sell the physical stuff but offer the option for digital purchases, 5-10 euros and they would sell like hotcakes and encourage even more plastic crack spending since you bought that "Imperium pack which includes codex for all imperium factions" and you should buy some sisters, some admec etc etc. , this would result in keeping their profit margin and maybe increasing it... I mean people are scanning and posting those things online anyway but for 5-10 euros from the main source would entice people into purchase... I would be one of their clients in this regard.
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![[Post New]](/s/i/i.gif) 2022/12/12 14:21:03
Subject: Update on independent stores following GW terms change
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Foxy Wildborne
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It's the world we live in, corporations be raising prices, telling workers they can't afford to raise wages and in the same breath bragging about literally all time record profits in all of history.
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This message was edited 1 time. Last update was at 2022/12/12 14:21:37
The old meta is dead and the new meta struggles to be born. Now is the time of munchkins. |
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![[Post New]](/s/i/i.gif) 2022/12/12 14:42:23
Subject: Update on independent stores following GW terms change
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Decrepit Dakkanaut
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Dudeface wrote:Tyel wrote:Where's the lack of honesty?
We know (because everyone is reporting it) that GW are charging them 5-6% more (on average - it will vary from item to item) but not increasing the RRP.
Therefore they need to reduce the discount they offer to the RRP.
Maybe this will result in them making a few percent more (i.e. costs from GW rise 4.2% in RRP terms, but their discount is down 5-6%) - but then these shops have to eat too. Their staff presumably want some sort of rise in a world of 10%+ inflation.
Which is all good and well but tell people that's what you're doing and why. If you're getting more profit per sale than before to cover additional operating costs, most customers with any sense of loyalty will respect that and continue to shop there. Instead throwing it at the feet of "nasty GW making us earn more off your sales", which honestly is a dangerous move anyway, just outline it, give examples so dumbasses like me aren't running numbers on forums.
... people like you should probably stop using terms they don't understand in an inaccurate way so as to make small businesses look bad.
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2021-4 Plog - Here we go again... - my fifth attempt at a Dakka PLOG
My Pile of Potential - updates ongoing...
Gamgee on Tau Players wrote:we all kill cats and sell our own families to the devil and eat live puppies.
Kanluwen wrote:This is, emphatically, why I will continue suggesting nuking Guard and starting over again. It's a legacy army that needs to be rebooted with a new focal point.
Confirmation of why no-one should listen to Kanluwen when it comes to the IG - he doesn't want the IG, he want's Kan's New Model Army...
tneva82 wrote:You aren't even trying ty pretend for honest arqument. Open bad faith trolling. - No reason to keep this here, unless people want to use it for something... |
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![[Post New]](/s/i/i.gif) 2022/12/12 14:58:56
Subject: Update on independent stores following GW terms change
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Gore-Drenched Khorne Chaos Lord
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Dysartes wrote:Dudeface wrote:Tyel wrote:Where's the lack of honesty?
We know (because everyone is reporting it) that GW are charging them 5-6% more (on average - it will vary from item to item) but not increasing the RRP.
Therefore they need to reduce the discount they offer to the RRP.
Maybe this will result in them making a few percent more (i.e. costs from GW rise 4.2% in RRP terms, but their discount is down 5-6%) - but then these shops have to eat too. Their staff presumably want some sort of rise in a world of 10%+ inflation.
Which is all good and well but tell people that's what you're doing and why. If you're getting more profit per sale than before to cover additional operating costs, most customers with any sense of loyalty will respect that and continue to shop there. Instead throwing it at the feet of "nasty GW making us earn more off your sales", which honestly is a dangerous move anyway, just outline it, give examples so dumbasses like me aren't running numbers on forums.
... people like you should probably stop using terms they don't understand in an inaccurate way so as to make small businesses look bad.
Well educate in that case please. Automatically Appended Next Post: Some UK retailers have put up prices over the weekend seemingly, possibly without any external messaging (not somewhere I order from with any frequency so might have been a newsletter to customers).
Please note as a clarification I'm not a businessman, I aren't 100% on the process or pricing structure, I'm not trying to make anyone look bad outside the context of my current understanding. If my understanding is wrong or incomplete then I only wish to better understand.
Contrary to the last thread, there's a lot of people who utilise these discounts and the reductions to afford some projects the otherwise can't, likewise we all want to support the little guy. All I ask is if they need to earn more off the top, please be honest about that and don't misdirect due to a trade increase and instead explain things clearly. If they're not then maybe a little clarification might be needed.
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This message was edited 1 time. Last update was at 2022/12/12 16:02:50
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![[Post New]](/s/i/i.gif) 2022/12/12 17:56:36
Subject: Update on independent stores following GW terms change
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Not as Good as a Minion
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to put it simple, as long as the retailer prices are lower than MSRP, it is all on GW
you cannot blame people who still be cheaper than the source
hence we are (rightfully) mad at scalpers because they sell above MSRP
that GW already priced people out of the hobby is nothing new, it happens with each price increase
some people justified GWs prices as "not that bad" because they would get 25" off at retailers and therefore hated those that said the prices are too much are now in trouble because they need to pay MSRP
my sympathy is limited
the only thing now left is the free rules because if those are gone (either because the Russian Archive will disappear, or GW finding a way with the next Edition for everyone to pay) there will be a massive hit in costs for those that just play too
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Harry, bring this ring to Narnia or the Sith will take the Enterprise |
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![[Post New]](/s/i/i.gif) 2022/12/13 09:59:46
Subject: Update on independent stores following GW terms change
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Decrepit Dakkanaut
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Well, you keep talking about "profit" to refer to the difference between the wholesale price and the seller's retail price (in this case, discounted from GW's RRP).
For that reference, you really need to be talking about "gross profit" - I'd generally prefer to use "margin" here, so as to avoid the potential confusion between gross and net profit, as I find different terms to be cleaner in that regard. The thing about "gross profit" is that it doesn't reflect what people will intuitively think of as "profit", which would actually be the " net profit", or the profits after costs are taken into account.
When you start going on about a small retailer making "more profit" by reducing the discount, a casual reader is just going to think that the owners are making more bank, full stop. Given the general economic situation over the last year, having a margin that may be £1-2 higher on a £100 RRP item is almost certainly not sufficient to offset the overall increased costs (see next paragraph).
Your statements have generally not acknowledged that there have been ridiculous hikes on utility prices, than commercial rents are up (or they were last I checked), that internet retailers may fall afoul of the increased warehouse tax that StraightSilver brought up - not sure on my opinion on that yet, though I can see it as a way to try to level the Amazon playing field for actual shops; not sure how it'll play out yet - and that general inflation means that staff are going to need higher wages/salary to end up with similar take home pay in real terms. Instead, you come across as demonising these small businesses for not taking the hit from GW squarely on the chin.
You keep going on about wanting "honesty" from these companies, and yet at no point have I seen you demanding that GW clarify why trade prices need to go up, but general RRP doesn't. You've taken a very weird position on all this.
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2021-4 Plog - Here we go again... - my fifth attempt at a Dakka PLOG
My Pile of Potential - updates ongoing...
Gamgee on Tau Players wrote:we all kill cats and sell our own families to the devil and eat live puppies.
Kanluwen wrote:This is, emphatically, why I will continue suggesting nuking Guard and starting over again. It's a legacy army that needs to be rebooted with a new focal point.
Confirmation of why no-one should listen to Kanluwen when it comes to the IG - he doesn't want the IG, he want's Kan's New Model Army...
tneva82 wrote:You aren't even trying ty pretend for honest arqument. Open bad faith trolling. - No reason to keep this here, unless people want to use it for something... |
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![[Post New]](/s/i/i.gif) 2022/12/13 10:20:09
Subject: Update on independent stores following GW terms change
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Stealthy Warhound Titan Princeps
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We struggled to reach a consensus about what a simple calculation with essentially one variable might mean so we can't hope to solve a calculation with many unknown variables that probably wasn't even communicated precisely. Need to just wait and then make our best choice with all info available, as always.
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![[Post New]](/s/i/i.gif) 2022/12/13 10:53:11
Subject: Re:Update on independent stores following GW terms change
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Grizzled Space Wolves Great Wolf
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kodos wrote: H.B.M.C. wrote: Rolsheen wrote:Not sure but the three places I buy from in Australia haven't said anything
One of the things said very early on with this news that it was, in-part, due to the dismal performance of the Australian market *, so I hardly think that (further) fething over retailers in Oz would be in their best interests.
*Whoda thunk that charging us** 40% more than most other countries would backfire...
**This likely includes the Kiwis as well.
PS: I read the source for the low performance of Australia some time ago, it was within the GW report and stating that Australia because of Covid restriction and Lockdowns there, being the only region with decline in sales in the last year
so no, it has nothing to do with the different prices, but may I ask why your lockdowns were so different to the rest of the world that sales declined while others increased?
We had bad and extremely long lockdowns but I'm not sure why it'd negatively affect sales here when I believe everywhere else it improved sales.
Sounds like a weak excuse to me. Maybe people were more worried about their incomes not covering essentials so they went into saving mode... but I don't think that was true in other industries or elsewhere in the world (I seem to recall electronics shops that sell TV's, computers, audio equipment, video games, etc saw really good sales over the period).
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![[Post New]](/s/i/i.gif) 2022/12/13 11:36:35
Subject: Update on independent stores following GW terms change
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Gore-Drenched Khorne Chaos Lord
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Dysartes wrote:
Well, you keep talking about "profit" to refer to the difference between the wholesale price and the seller's retail price (in this case, discounted from GW's RRP).
For that reference, you really need to be talking about "gross profit" - I'd generally prefer to use "margin" here, so as to avoid the potential confusion between gross and net profit, as I find different terms to be cleaner in that regard. The thing about "gross profit" is that it doesn't reflect what people will intuitively think of as "profit", which would actually be the " net profit", or the profits after costs are taken into account.
When you start going on about a small retailer making "more profit" by reducing the discount, a casual reader is just going to think that the owners are making more bank, full stop. Given the general economic situation over the last year, having a margin that may be £1-2 higher on a £100 RRP item is almost certainly not sufficient to offset the overall increased costs (see next paragraph).
Your statements have generally not acknowledged that there have been ridiculous hikes on utility prices, than commercial rents are up (or they were last I checked), that internet retailers may fall afoul of the increased warehouse tax that StraightSilver brought up - not sure on my opinion on that yet, though I can see it as a way to try to level the Amazon playing field for actual shops; not sure how it'll play out yet - and that general inflation means that staff are going to need higher wages/salary to end up with similar take home pay in real terms. Instead, you come across as demonising these small businesses for not taking the hit from GW squarely on the chin.
You keep going on about wanting "honesty" from these companies, and yet at no point have I seen you demanding that GW clarify why trade prices need to go up, but general RRP doesn't. You've taken a very weird position on all this.
I'm willing to hope/assume the move by GW is to avoid a generic price hike on the RRP to cover their own increased operating costs. They've chosen to take an action to limit impact to the end customers as a whole by squeezing the middle men, frankly I don't see why they would need to explain it to you or I at this stage as an end product consumer as the change is in their trade network and from their perspective shouldn't impact us at all directly, whereas an RRP increase would. The consumers are being impacted because the trade retailers are increasing their prices, so the onus is on them to explain why if they feel the need to at all.
Regards the rest of the post I don't disagree, but again why is it so hard for a shop to say "We've had the trade terms adjusted and as we're all finding life hard at this point we need to reduce discounts a little further to cover this and our increased operating costs", which is all I asked for regards the honesty point.
Honestly at this point it's in the eyes of the customers to do as they please, I will continue to seek a bargain where possible but my preferred online retailer might change when it otherwise wouldn't have done if the message had been relayed clearer.
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This message was edited 1 time. Last update was at 2022/12/13 11:43:34
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![[Post New]](/s/i/i.gif) 2022/12/13 11:46:10
Subject: Update on independent stores following GW terms change
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Shas'la with Pulse Carbine
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Dudeface wrote:I'm willing to hope/assume the move by GW is to avoid a generic price hike on the RRP to cover their own increased operating costs.
For now, maybe. But I would bet that retail prices (RRP) are going to increase in 6 months time.
GW price changes always happen at the end of their fiscal year (end of May). In some years fewer products go up in price, some years more.
I think that in 2023 we'll see one of the largest increases in retail prices.
By announcing it a few weeks before the end of the month (May 2023) they can capitalise on FOMO and boost yearly revenue figures.
Only for the financial performance of the following fiscal year to be carried by the launch of 10th ed.
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![[Post New]](/s/i/i.gif) 2022/12/13 12:15:28
Subject: Re:Update on independent stores following GW terms change
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Longtime Dakkanaut
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AllSeeingSkink wrote: kodos wrote: H.B.M.C. wrote: Rolsheen wrote:Not sure but the three places I buy from in Australia haven't said anything
One of the things said very early on with this news that it was, in-part, due to the dismal performance of the Australian market *, so I hardly think that (further) fething over retailers in Oz would be in their best interests.
*Whoda thunk that charging us** 40% more than most other countries would backfire...
**This likely includes the Kiwis as well.
PS: I read the source for the low performance of Australia some time ago, it was within the GW report and stating that Australia because of Covid restriction and Lockdowns there, being the only region with decline in sales in the last year
so no, it has nothing to do with the different prices, but may I ask why your lockdowns were so different to the rest of the world that sales declined while others increased?
We had bad and extremely long lockdowns but I'm not sure why it'd negatively affect sales here when I believe everywhere else it improved sales.
Sounds like a weak excuse to me. Maybe people were more worried about their incomes not covering essentials so they went into saving mode... but I don't think that was true in other industries or elsewhere in the world (I seem to recall electronics shops that sell TV's, computers, audio equipment, video games, etc saw really good sales over the period).
Every wargamer I know started a new Infinity army, definitely COVID!
But really, all gaming was up for us. But 40k is such a small part now, and we haven’t had big restrictions at all.
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![[Post New]](/s/i/i.gif) 2022/12/13 13:11:09
Subject: Update on independent stores following GW terms change
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Not as Good as a Minion
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good to know that this is just corporate speak for "we messed up"
for a moment I thought your really had China like restrictions down there (not that I would have believed it, but wired things happened around the world last year)
but this was also means 40k sales in the south won't recover post covid like GW told their shareholders
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Harry, bring this ring to Narnia or the Sith will take the Enterprise |
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![[Post New]](/s/i/i.gif) 2022/12/13 13:15:54
Subject: Update on independent stores following GW terms change
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Fireknife Shas'el
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Dudeface wrote: Dysartes wrote:
Well, you keep talking about "profit" to refer to the difference between the wholesale price and the seller's retail price (in this case, discounted from GW's RRP).
For that reference, you really need to be talking about "gross profit" - I'd generally prefer to use "margin" here, so as to avoid the potential confusion between gross and net profit, as I find different terms to be cleaner in that regard. The thing about "gross profit" is that it doesn't reflect what people will intuitively think of as "profit", which would actually be the " net profit", or the profits after costs are taken into account.
When you start going on about a small retailer making "more profit" by reducing the discount, a casual reader is just going to think that the owners are making more bank, full stop. Given the general economic situation over the last year, having a margin that may be £1-2 higher on a £100 RRP item is almost certainly not sufficient to offset the overall increased costs (see next paragraph).
Your statements have generally not acknowledged that there have been ridiculous hikes on utility prices, than commercial rents are up (or they were last I checked), that internet retailers may fall afoul of the increased warehouse tax that StraightSilver brought up - not sure on my opinion on that yet, though I can see it as a way to try to level the Amazon playing field for actual shops; not sure how it'll play out yet - and that general inflation means that staff are going to need higher wages/salary to end up with similar take home pay in real terms. Instead, you come across as demonising these small businesses for not taking the hit from GW squarely on the chin.
You keep going on about wanting "honesty" from these companies, and yet at no point have I seen you demanding that GW clarify why trade prices need to go up, but general RRP doesn't. You've taken a very weird position on all this.
I'm willing to hope/assume the move by GW is to avoid a generic price hike on the RRP to cover their own increased operating costs. They've chosen to take an action to limit impact to the end customers as a whole by squeezing the middle men, frankly I don't see why they would need to explain it to you or I at this stage as an end product consumer as the change is in their trade network and from their perspective shouldn't impact us at all directly, whereas an RRP increase would. The consumers are being impacted because the trade retailers are increasing their prices, so the onus is on them to explain why if they feel the need to at all.
Regards the rest of the post I don't disagree, but again why is it so hard for a shop to say "We've had the trade terms adjusted and as we're all finding life hard at this point we need to reduce discounts a little further to cover this and our increased operating costs", which is all I asked for regards the honesty point.
Honestly at this point it's in the eyes of the customers to do as they please, I will continue to seek a bargain where possible but my preferred online retailer might change when it otherwise wouldn't have done if the message had been relayed clearer.
I don’t think they’re just/specifically targeting the middleman; a 5-6% price increase is only about half of current UK inflation rate, most of which is coming from high energy prices and a weak £, both of which will directly impact GW production. So even with the trade price increase, I think GW are probably taking about a 50% hit on margin per sale, whether trade or direct (because direct has to cover their own retail operation costs). Automatically Appended Next Post: GW appear to have decided their best way through this is to eat as much of the increasing costs as they can afford to and try to keep sales as high as possible by fixing RRP (for the time being).
Note that this just my interpretation of the facts and not an endorsement, agreement or defence of that choice.
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This message was edited 1 time. Last update was at 2022/12/13 13:19:02
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![[Post New]](/s/i/i.gif) 2022/12/13 15:23:49
Subject: Update on independent stores following GW terms change
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Dakka Veteran
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Dysartes wrote:
Well, you keep talking about "profit" to refer to the difference between the wholesale price and the seller's retail price (in this case, discounted from GW's RRP).
For that reference, you really need to be talking about "gross profit" - I'd generally prefer to use "margin" here, so as to avoid the potential confusion between gross and net profit, as I find different terms to be cleaner in that regard. The thing about "gross profit" is that it doesn't reflect what people will intuitively think of as "profit", which would actually be the " net profit", or the profits after costs are taken into account.
When you start going on about a small retailer making "more profit" by reducing the discount, a casual reader is just going to think that the owners are making more bank, full stop. Given the general economic situation over the last year, having a margin that may be £1-2 higher on a £100 RRP item is almost certainly not sufficient to offset the overall increased costs (see next paragraph).
Your statements have generally not acknowledged that there have been ridiculous hikes on utility prices, than commercial rents are up (or they were last I checked), that internet retailers may fall afoul of the increased warehouse tax that StraightSilver brought up - not sure on my opinion on that yet, though I can see it as a way to try to level the Amazon playing field for actual shops; not sure how it'll play out yet - and that general inflation means that staff are going to need higher wages/salary to end up with similar take home pay in real terms. Instead, you come across as demonising these small businesses for not taking the hit from GW squarely on the chin.
You keep going on about wanting "honesty" from these companies, and yet at no point have I seen you demanding that GW clarify why trade prices need to go up, but general RRP doesn't. You've taken a very weird position on all this.
This is totally true but is also the point being made: the price hikes aren't entirely due to GW, there are many other factors acting on small businesses at the moment. So for a retailer to claim that any price hike is solely due to GW increasing prices is probably disingenuous.
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