<![CDATA[Latest posts for the thread "Complaints and Economics"]]> http://www.dakkadakka.com/dakkaforum/posts/list/7.page JForum - http://www.jforum.net Complaints and Economics
1. Every company raise prices to cover increasing operating costs, and every time they do so, they do it by a higher percentage then their costs have gone up.

2. Many companies have imposed limitations on distributer on where they may sell product. For example, chemical manufacturering companies have mandated that certain distributers of their product may only sell within a certain geograpic area. Coca-Cola does the same. For those of you old enough to remember physical newspapers, they followed a similer method, paper-routes were assigned, and if you didn't like your paperboy(girl), too bad, thats who was going to deliver your newspaper. You couldn't get someone else, you had to get it delivered from him, or go to the store and buy it yourself.

Do I like the price increase?
NO!
Would I be happy if I lived in Australia and could no longer order my product from a cheaper supplier? No

But when it comes down to it, everything GW is doing is a tried and true business model that has existed for many many years. You may say "But look at my Xbox, it's cheaper now then it was 6 years ago" While that is true, it is also because the supply is higher, while the demand is lower.

I don't want to seem like a prick, but before you complain about the cost of things, please learn something about economics.

/rant]]> http://www.dakkadakka.com/dakkaforum/posts/preList/371596/2853521.page http://www.dakkadakka.com/dakkaforum/posts/preList/371596/2853521.page GMT Complaints and Economics http://www.dakkadakka.com/dakkaforum/posts/preList/371596/2853539.page http://www.dakkadakka.com/dakkaforum/posts/preList/371596/2853539.page GMT Complaints and Economics
The Dreadnote wrote:You've explained that there is precedent for companies imposing distribution limits. You haven't explained what economics have to do with it.


By imposing a monopoly on wholesalers / distributers, it actually leads to a competive market on the retail / reseller level. Due to supply chain's, it is not always possible to sell product at a competitive price to those who would ship from an other nation. If you were to purchase everything you own from a different nation / continent, that would damage the local economy. This would be especially true if you told people you know "Oh why do you buy local? It's much cheaper if you get it shipped from X" This could potentially lead to weaker economy. So while yes, by limiting distribution rights, it is possible to strengthen local demand, and increase your profits, and the economy as a whole. Unfortunatly this can lead to higher prices then what people would like, and while it will denture some customers, it will increase demand by having a larger impact on the local economy(well as much as an impact that a niche hobby can have.....)

Some of you may think it's stupid, but yes the whole "Out of a job yet? Keep buying foreign" bumper sticker has some strong wisdom to it.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/371596/2853657.page http://www.dakkadakka.com/dakkaforum/posts/preList/371596/2853657.page GMT Complaints and Economics
You could use the same argument for not buying hybrid cars as Canadians dont produce those, make them buy local, that way no one will lose their job..

You are right in that its about economics however not at the macro level. Rather Australians could buy it from Maelstrom at less than half the price of the local GW stores. If they want viable stores, which is an important part of recruiting and teaching the next generation of gamers, then prices need to be commercial.

So whats the answer? Simple, ensure supply can only come through at full prices, which is what GW have done.

Its a listed company who has to answer to shareholders. The only economics GW cares about really is how many will stop buying, or not take up the hobby because its past some adoption cost threshold, vs the increased margin earned from those who remain. If the increased margin is more than hobbiests who leave (probably bought their supply already anyway), and those who may otherwise take up the hobby (it was always expensive), then its a no brainer.

For me it will be sad to see the end of cheap supply although I believe the swap shop will start to work overtime from here. At least there my strong Au dollar works in my favour, even if postage and EBay spreads dont.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/371596/2853756.page http://www.dakkadakka.com/dakkaforum/posts/preList/371596/2853756.page GMT Complaints and Economics GW is not adopting good business practices. Short of petrol, hardly anything has gone up 30% in the last 6 months.

Knowing about economic's means feth all in the grand scheme of things. GW are treating thier customers like s**t, this is nothing to do with economics, this is a greedy company who think they have cornered the Market and want more, more, more.

I can't think of another miniatures and war-games company that has made a loss for 6 years in a row and who STILL increase prices.

Football clubs in England have gone bust by adopting the same sort of attitude that GW have. As have banks and many more high street stores......

If GW continue like this, they will go under as well.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/371596/2853802.page http://www.dakkadakka.com/dakkaforum/posts/preList/371596/2853802.page GMT Complaints and Economics This does not need to be a separate thread.

We already have enough discussion topics open on this matter. Feel free to post your opinion (hopefully more politely) in any of those other threads.

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