NEWS: GW repackages infantry boxes and increases prices

Necromancer7 · **Posted:** Mon Jan 16, 2012 12:04 am

You guys also need to compensate for the monopoly GW has on the LOTR line due to their license, and the elasticity of demand.

Whilst, being a luxury good, the elasticity of demand should be fairly high; the monopoly that GW enjoys allows them to push prices above a natural equilibrium level. This increases their marginal revenue, but also results in a higher than market price for their products. The only way prices will ever come down to what we, as consumers, are actually willing to pay is if other suppliers encroached into the market.

The licensing agreements preclude that, however. The closest there is are the other miniature suppliers, but these aren't perfect substitutes.

ForgottenLore · **Joined:** Sun Mar 27, 2011 10:47 pm **Posts:** 491

Draugluin wrote:

But you ONLY maximize profits at the points of equilibrium, where the sales price meets the price limits of most people buying.

Exactly. If you are under that point you raise prices, if you are over that point you lower them.

Unfortunately corporate culture produces attitudes that fail to comprehend the second half of that sentence, and GW falls into that trap in a big way.

GothmogtheWerewolf · **Posted:** Mon Jan 16, 2012 12:22 am

Farmer Maggot wrote:

Hopefully the packaging of warriors will help to see a return to a more scenario based game. I think the way for GW to make most profit is to encourage us to have a little of everything for skirmish games rather than a single army for mass battles. That approach keeps people always buying instead of only when their army gets new models.

I would much rather have one, two or three massive armies for mass battles, because I find it makes the controlling players (especiallly myself) feel more powerful with more troops to command. This makes GW's ludicrous price rise a huge burden.

However, as someone mentioned before: the following troops are much more likely to end up in plastic at some point in the (distant) future, so I hope some of them do (especially Mordor Uruks and Khandish Warriors:

Citadel Guards
Foot Knights of Dol Amroth
Numenorean Warriors
Arnor Warriors
Axemen of Lossonarch
Clansmen of Lamedon
Rohan Royal Knights on foot
Khazad Guard
Hobbit Militia & Archers
Mordor Uruk-hai
Orc Trackers
Black Numenoreans
Wildmen of Dunalnd
Dunleding Warriors
Sharkey's Ruffians
Moria Goblin Prowlers
Khandish Warriors
Mahud Warriors
Serpent Guard

And possibly others. I very much doubt all the above would be released, especially with new Hobbot-related items, but...

Necromancer7 · **Posted:** Mon Jan 16, 2012 12:32 am

I does make you wonder; if they're so keen to make more money then why not release those highly demanded figures?
No matter what the price, I'm sure some of those sets (especially Mordor Uruks and Dol Amroth on foot) in plastic would guarantee GW a ton of sales.

Draugluin · **Posted:** Mon Jan 16, 2012 1:45 am

ForgottenLore wrote:

Draugluin wrote:

But you ONLY maximize profits at the points of equilibrium, where the sales price meets the price limits of most people buying.

Exactly. If you are under that point you raise prices, if you are over that point you lower them.

Unfortunately corporate culture produces attitudes that fail to comprehend the second half of that sentence, and GW falls into that trap in a big way.

OK, I was just saying that the equilibrium HAS to have been hit long before now, which is why GW shouldn't raise prices anymore, unless to stay RIGHTY with inflation.

ForgottenLore · **Joined:** Sun Mar 27, 2011 10:47 pm **Posts:** 491

GothmogtheWerewolf wrote:

However, as someone mentioned before: the following troops are much more likely to end up in plastic at some point in the (distant) future

Why? I have seen a couple people mention this and I don't see any reason at all why this particular repackaging and price rise would have ANY effect on whether or not some of the rarer troops get converted to plastic. They simply aren't related at all.

Sacrilege83 · **Posted:** Mon Jan 16, 2012 4:06 am

I hate to say it, but if I wasn't hating on GW before, I'm certainly hating on them now after this stunt. I'm a "Player Hater". After all they've done:

-Increase prices by 35%
-Eliminating purchasing through online independent retailers
-Changing models from metals to a cheaper material with poor quality control and have the nerve to call it Finecast
-Now this, reducing the number of models in a plastic box set and charge us what used to be the price for a box of 24 three years ago

If GW were to fall flat on its face all of a sudden and went bankrupt, I wouldn't feel a bit sympathetic or sad for them. I actually would be quite happy as in, "Good, it serves them right!" Even if I'm not able to get the latest Hobbit miniatures anymore. What's wrong with this company? Do they actually think of their customer base as being stupid or addicted junkies that we'll just bend over and take in all their price increases? Or is the client base actually that way that we allow it to happen?

I'm never buying a plastic box set at full retail price. I'm interested in seeing how this company will fair 5-10 years down the line.

Flameofthewest · **Joined:** Tue Dec 27, 2011 6:28 am **Posts:** 17

Thank goodness for Ebay! I won 60 plastic Mordor Orcs last night for 55.00 US! Great deal now with the new price increases.

IsleStaggerholm · **Posted:** Mon Jan 16, 2012 5:27 am

Sacrilege83 wrote:

Do they actually think of their customer base as being stupid or addicted junkies that we'll just bend over and take in all their price increases? Or is the client base actually that way that we allow it to happen?

Sticky Fingersss · **Joined:** Sat Oct 09, 2010 11:20 am **Posts:** 1776

Quote:

GW doesn't seem to understand economics. If you decrease price, sales tend to increase. If you increase price, sales tend to decrease. At a certain point, you reach an equilibrium, where price meets sales to give the highest possible profit. So, if something isn't selling well, decrease the price to the point where you can get rid of it without losing any money. GW is doing the opposite. I understand that LotR isn't their most popular brand, but the more you increase the price of them, the less you will sell, decreasing profits. If they understood economics, they would sell them MUCH cheaper than this. I don't know the production costs of producing a box of minis, but it can't be any higher than $15-$20, otherwise they wouldn't have sold them (early) last year for only $27. There can't possibly be such a drastic change in costs to call for a price hike up to almost $45.

That is an incredibly simplified economic point of view. GW definetly understands economics more than you do. They are still a huge business and have survived for ages. Any price rise is going to be unpopular bu. That's the way all large companies think.

Beowulf03809 · **Posted:** Mon Jan 16, 2012 4:03 pm

GothmogtheWerewolf wrote:

Draugluin wrote:

GothmogtheWerewolf wrote:

You're right the Goblin paint set is now very good value. And you can still by MoM now, but DezartFox works at GW so if he says it will be cancelled, then I believe him.

AHH, so his word should be trusted. I can see a "Trapped in the Misty Mountains" starter set that includes the 13 dwarves, Bilbo and Gandalf versus whatever new molds of goblins and the great goblin. There really won't be any other part of the movie that would translate into a starter set imo.

Quite possibly, as I don't think the warg encounter or the stone trolls are big enough in terms of bringin in. Also, that is the closest Hobbit scene to MoM.

Nah...it will be Bilbo's Kitchen Starter Set.

RyuAzai · **Joined:** Sun Apr 25, 2010 9:36 pm **Posts:** 51

Quote:

Thank goodness for Ebay! I won 60 plastic Mordor Orcs last night for 55.00 US! Great deal now with the new price increases.

Ah! I was competing with you! I gave up on the orcs early though. I won the Armored Glorfindel, and the Cave troll

Draugluin · **Posted:** Mon Jan 16, 2012 6:05 pm

Sticky Fingersss wrote:

Quote:

GW doesn't seem to understand economics. If you decrease price, sales tend to increase. If you increase price, sales tend to decrease. At a certain point, you reach an equilibrium, where price meets sales to give the highest possible profit. So, if something isn't selling well, decrease the price to the point where you can get rid of it without losing any money. GW is doing the opposite. I understand that LotR isn't their most popular brand, but the more you increase the price of them, the less you will sell, decreasing profits. If they understood economics, they would sell them MUCH cheaper than this. I don't know the production costs of producing a box of minis, but it can't be any higher than $15-$20, otherwise they wouldn't have sold them (early) last year for only $27. There can't possibly be such a drastic change in costs to call for a price hike up to almost $45.

That is an incredibly simplified economic point of view. GW definetly understands economics more than you do. They are still a huge business and have survived for ages. Any price rise is going to be unpopular bu. That's the way all large companies think.

Of course it's a simplified view, but it's still true. If they understood economics more than me, then they wouldn't increase the prices to ludicrous levels. I understand that taxes are higher in the UK than in the US, but that should mean it's cheaper here snce they make them here in the US too.

Draugluin · **Posted:** Mon Jan 16, 2012 6:08 pm

Beowulf03809 wrote:

Nah...it will be Bilbo's Kitchen Starter Set.

So, basically the Hobbit version of the Fellowship set. lol

Chris · **Posted:** Mon Jan 16, 2012 6:43 pm

RyuAzai wrote:

Quote:

Thank goodness for Ebay! I won 60 plastic Mordor Orcs last night for 55.00 US! Great deal now with the new price increases.

Ah! I was competing with you! I gave up on the orcs early though. I won the Armored Glorfindel, and the Cave troll

No lol, if im right u won armored glorfindel from me

[edit] at least last time i check i had the highest bid :roll:

Natarn · **Posted:** Mon Jan 16, 2012 6:45 pm

I guess all those who bought the GW 'How to roll dice'* book will also be buying 12 plastic minis at this ridiculous price.

Thank goodness I have stacks of minis already and if I'm mental enough to buy more (I am, actually) they are mostly available second hand. Only two types of people would buy these highly priced plastic toys: rich people or numpties!
Oh, sorry... for those who've bought some. I guess you must be rich! :-D

I have noticed over the past year that sellers of GW lotr minis are doing much better than they used to in bringing in the money! I've had to pay more than I used to for second hand minis.

* Yes, I know that was a GW 'joke'. It was about as funny as their pricing policy. Were they being ironic?

Pindergorn · **Posted:** Mon Jan 16, 2012 7:05 pm

Natarn wrote:

* Yes, I know that was a GW 'joke'. It was about as funny as their pricing policy. Were they being ironic?

More like an awkward attempt at self deprecation. The problem is, a book like "How to Roll Citadel Dice" isn't particularly out of character for them. After all, they did come out with Citadel water pots ( i use recyclyed plastic food pots), Citadel paint palettes (I use clear plastic blister packs for a palette), Citadel static grass "tufts" (a basing product which already existed in the wider market, but appropriated and branded with "Citadel" and put on retail at a large markup). They even sell/used to sell spare mixing pots - empty paint pots, something easily obtainable for "free" if people would take the trouble to wash out old pots.

Jobu · **Posted:** Mon Jan 16, 2012 8:33 pm

King Ondoher wrote:

Natarn wrote:

* Yes, I know that was a GW 'joke'. It was about as funny as their pricing policy. Were they being ironic?

More like an awkward attempt at self deprecation. The problem is, a book like "How to Roll Citadel Dice" isn't particularly out of character for them. After all, they did come out with Citadel water pots ( i use recyclyed plastic food pots), Citadel paint palettes (I use clear plastic blister packs for a palette), Citadel static grass "tufts" (a basing product which already existed in the wider market, but appropriated and branded with "Citadel" and put on retail at a large markup). They even sell/used to sell spare mixing pots - empty paint pots, something easily obtainable for "free" if people would take the trouble to wash out old pots.

First off, don't get me wrong I do not disagree that GW does make some expensive hobby accessories, however, they are a decent quality. Who buys them? People who do not want to make a separate stop at another store for something, or who feel that the quality is good at that price point.

I agree with others that it may be more expensive to start a legolas and 60 wood elf army now ( let alone goblins.....wow) but GW is in the business of making money for it's investors, and there are no non-profit miniature companies(that I am aware of). This will probably lead me to finish off the armies I have now through ebay and spread out the purchase of new plastics and hobbit characters for which I get to pay full price.

CaptainOfTheWhiteTower · **Posted:** Mon Jan 16, 2012 8:55 pm

Draugluin wrote:

GW doesn't seem to understand economics. If you decrease price, sales tend to increase. If you increase price, sales tend to decrease. At a certain point, you reach an equilibrium, where price meets sales to give the highest possible profit. So, if something isn't selling well, decrease the price to the point where you can get rid of it without losing any money. GW is doing the opposite. I understand that LotR isn't their most popular brand, but the more you increase the price of them, the less you will sell, decreasing profits. If they understood economics, they would sell them MUCH cheaper than this. I don't know the production costs of producing a box of minis, but it can't be any higher than $15-$20, otherwise they wouldn't have sold them (early) last year for only $27. There can't possibly be such a drastic change in costs to call for a price hike up to almost $45.

As Necromancer said demand is pretty inelastic as far as GW is concerned. Demand is not very sensitive to price in other words. They understand economics all too well unfortunately, thats why we're in this situation.

Sacrilege83 · **Posted:** Tue Jan 17, 2012 12:35 am

Jobu wrote:

GW is in the business of making money for it's investors, and there are no non-profit miniature companies(that I am aware of).

Yeah we're pretty much all aware of that all too well, but there comes a point when a company becomes too greedy. GW has definitely reached that point. They must think that they're an oil company where people depend on their product to continue on with their daily lives. People are not expecting GW to give away products for free, they've always been expensive to begin with, now it's just plain ludicrous.

NEWS: GW repackages infantry boxes and increases prices

Who is online