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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Fri Jan 27, 2012 6:40 pm 
Elven Warrior
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They can't possibly rise the prices anymore, not in a general price rise anyway... For the last few years customer count has dropped, but profits increased. It's a short term solution that they've been re-using to keep the shareholders happy.

Luckily they will probably learn their lesson easier than other companies, they'll not make as much money as expected in a quarter and then change the way things are.

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Fri Jan 27, 2012 6:42 pm 
Kinsman
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I just checked GW's site, and they've already changed the prices and packages.. So it's already been through..

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Fri Jan 27, 2012 6:51 pm 
Elven Warrior
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Gondors Finest wrote:
I just checked GW's site, and they've already changed the prices and packages.. So it's already been through..


Yeah the boxes started appearing in the stock last week. So best bet is to go to your local store and get what is left! I've been eyeing up the two Harad boxes..

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Fri Jan 27, 2012 7:35 pm 
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Honestly, I'm seeing these price raises due to materials themselves go up, rather than just GW wanting more money. I mean, the world still is on an economic down turn.
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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Fri Jan 27, 2012 8:06 pm 
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Dezartfox wrote:
They can't possibly rise the prices anymore, not in a general price rise anyway... For the last few years customer count has dropped, but profits increased. It's a short term solution that they've been re-using to keep the shareholders happy.

Luckily they will probably learn their lesson easier than other companies, they'll not make as much money as expected in a quarter and then change the way things are.


Wishful thinking, I fear. And even if they will stop price rising, they will have alienated so many customers, they will have a hell of a time anyway.

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Fri Jan 27, 2012 8:16 pm 
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So, how do we know GW IS alienating customers? Where do we find this data? I'm rather curious.
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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Fri Jan 27, 2012 8:27 pm 
Elven Elder
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Blackknight1239 wrote:
Honestly, I'm seeing these price raises due to materials themselves go up, rather than just GW wanting more money. I mean, the world still is on an economic down turn.

I would also blame the tax rates in the individual countries. I don't know about the taxes in the UK or Europe, but I know they're higher than in the US. Online sales aren't subject to sales tax, but the materials that the companies are selling are still taxed when the company buys it. To compensate, they would have to increase the rates, just because the taxes are higher on what they're selling. Least ways, that's just what I think.

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Fri Jan 27, 2012 8:31 pm 
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Blackknight1239 wrote:
So, how do we know GW IS alienating customers? Where do we find this data? I'm rather curious.

I don't have the information on hand myself. Most of what I know comes from reading analyses on other sites, but the general info is this. GW is a publicly traded company. This means that they have to issue regular reports on their earnings for the stockholders. Those reports have shown that they are making roughly the same amount of money every year for the past several years. However, they have been consistently raising prices every year as well. That means that they have actually been selling less and less product every year. Meaning that either some people are leaving altogether or most people are buying less and less stuff.

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They can't possibly rise the prices anymore, not in a general price rise anyway... For the last few years customer count has dropped, but profits increased. It's a short term solution that they've been re-using to keep the shareholders happy.

Luckily they will probably learn their lesson easier than other companies, they'll not make as much money as expected in a quarter and then change the way things are.

The problem here is actually the Hobbit. They only have to keep going for another few months or so, then they are going to hit another bubble from the Hobbit sales. That will convince them that they are doing things correctly until the Hobbit bubble bursts. Then I think they are going to crash hard, around 2016 or 17

Still, that is a long time away A lot could happen in the next 4-5 years.
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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Fri Jan 27, 2012 8:36 pm 
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Fortunately, during that bubble, they'll be making lots of new stuff (of which I'll buy some stuff) and when the bubble bursts, they'll sell them cheap to make room for WH and 40K. At which time I will buy lots of stuff cheap.

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Sat Jan 28, 2012 4:38 pm 
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Dezartfox wrote:
Gondors Finest wrote:
the boxes started appearing in the stock last week. So best bet is to go to your local store and get what is left! I've been eyeing up the two Harad boxes..

My store's being really good about this, offered to put by some 24-boxes of anything I was after. Might get those corsairs after all.

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Sat Jan 28, 2012 5:38 pm 
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Blackknight1239 wrote:
Honestly, I'm seeing these price raises due to materials themselves go up, rather than just GW wanting more money. I mean, the world still is on an economic down turn.


I doubt that, prices of WWII models are the same and have always been the same since I started with the hobby wich is around 11 years back. I started painting LotR figures one year after that and by that time a box of Mordor Orcs cost me 180 sek. Now they are 170 sek but for half the amount of figures wich means that the prices almost have been doubled. WWII model kits have been stable in cost, I remember I bought my second 1/72 Airfix model which was a Hawker Typhoon for about 60-70 sek, today the prices are pretty much the same, at least not a 95% increase. The taxes here in Sweden have been stable too, we still have one of the highest taxes in the world! :P
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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Sat Jan 28, 2012 6:00 pm 
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Lorizael wrote:
Seeing as so many posters on here state that they don't ever buy from GW any more and that they use ebay if they need anything, but mostly they don't as they have hundreds of models... it makes sense for GW to raise prices- plenty of "veteran" gamers don't buy any more anyway so it makes no difference in terms of sales. When the hobbit appears though and more people are heading into GW and seeing the games and wanting to get started, the prices will be set and won't be anything different to them. In fact they'll see 10 marines for £23 and 12 Gondor for £13.50. Will seem like a bargain I'm sure...



While I'm with Hellfury and King Ondoher in feeling, my logic sides with Lorizael. GW has a clear business strategy here but that doesn't mean it includes many of us (i.e. veteran games, WotR devotees, etc)

This is not "truth" but rather my read of the situation:

- GW has an obvious marketing window - late 2012 through mid 2014 - with the release of the two Hobbit movies.

- I'm guessing that GW realized that they need a "gateway drug" system to bring new entrants into the hobby - one that is relatively less expensive, requires fewer models and is simpler (i.e. fewer special rules and army books). Ipso-facto, return to SBG. And it doesn't hurt that the IP for this system has a more universal appeal than GW's WFB and 40K systems.

- Even with the repackaging and price hikes, as others have demonstrated, SBG will be less expensive than 40K/WFB both in price-per-model and total model count to enjoy a game. (Not to mention fewer models to paint.)

- Whether WotR was a well-intentioned fizzle or a shameless gambit to move backlogs of stock, it's clear from my gaming group that GW really doesn't need TWO massed fantasy battle games and, combined with the second bullet above, GW came to to a similar conclusion. (Disclaimer, I started with WFB and find WotR MUCH more appealing.)

- Assuming a strategic commitment to making the "third system" a skirmish game, it logically follows that if they expect to sell fewer models per player, they must naturally increase the price per model just to tread water. And, when you factor in the price relative to a Space Marine or a Greatsword AND the not inconsiderable demand that will be generated by Peter Jackson's movies AND the past experience that the demand bubble won't last forever, WHY wouldn't they make a no doubt carefully calculated (by their MBA bean counters) price hike?? Don't get me wrong, I think it sucks a$$ too. But it's undeniably a reasonable strategy.

- I'd wager real money (and I'm anti-gambling by temperament) that GW has some very clear analytical modeling of how their customer base purchases over time. What many veteran gamers under-appreciate is the likelihood that they themselves are not representative of GW's sweet spot in terms of demand. They can obviously take most of them for granted. For every Hellfury, King Ondoher or me that swears off buying GW product, there must be and equal or greater amount of new entrants. GW's data must show them this otherwise they would behave differently.

All that said, I personally believe GW has a long term sustainability problem, due to wringing higher margins out of fewer customers. But they're publicly traded, which naturally drives near-term thinking. So I suspect they're milking the 40K and WFB cows by having a declining customer base purchase more troops or big models while repositioning LotR to become the "feeder system" during the Hobbit wave and, after that, who knows what 2015 and beyond looks like. They'll figure that out when they get there - depending on which "they" are still in the C-suite.

In sum, I find the price hike nauseating (although I have shedloads of models), I'm not a fan of skirmish games and so I'm left cold by the return of SBG, I'm a sad panda to see WotR sent to the retirement home of Specialist Games instead of getting refined to be the unparalleled system it could be and, nonetheless I still get a little thrill from the new models with the prospect of many more to come in a year. And, while I'm as annoyed as the next guy by the jackassery of how GW runs its business, I think this particular move makes all the sense in the world.

(I haven't posted here in a long while so I'm making it up in volume. :) )
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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Tue Jan 31, 2012 6:37 pm 
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Dezartfox wrote:
After a while we all forget the price rises and just get on with it, I imagine the same will apply here, except when we buy a new force..


I actually haven't bought a single plastic mini since the Canadian price went up to $37.50 per box. Having said that, I've picked up a TON of discounted metals.

I think this is a bad move for GW, but it will doubtlessly work out for them in the end. They won't see any more of my money for stuff I already have though.

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Thu Feb 02, 2012 5:25 am 
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I just checked out the webstore. That is very depressing.

I think its safe to say I'm done with the models. I've got enough luckily good and evil but I don't see how its going to grow. There is no way I'm gonna convince a friend to buy a WoTR army... no point even calculating it. I shudder to hear the question "So how much to start?" I'll just say, "Don't worry about it. You can use my models." Wow...

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Tue Feb 07, 2012 3:45 pm 
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Yeah, it really shafts WoTR. When I started back in 2001 it was $20 for 24 models, now it's $26.50 for 12. I know inflation and all that, but nearly 150% in 10 years? Seems too high to me... Luckily, like I said, I have (probably more than) enough plastics. Future releases and the current finecast and metals I still want will hurt enough.

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Tue Feb 07, 2012 4:57 pm 
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Ebay? Just saying.
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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Tue Feb 07, 2012 6:17 pm 
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Lord Hurin wrote:
Yeah, it really shafts WoTR. When I started back in 2001 it was $20 for 24 models, now it's $26.50 for 12. I know inflation and all that, but nearly 150% in 10 years? Seems too high to me... Luckily, like I said, I have (probably more than) enough plastics. Future releases and the current finecast and metals I still want will hurt enough.

A 200% rise in prices would be paying $40 for 24, so paying $53 for 24 now is actually a 265% rise in prices in the last 10 years.

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Tue Feb 07, 2012 6:53 pm 
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Draugluin wrote:
A 200% rise in prices would be paying $40 for 24, so paying $53 for 24 now is actually a 265% rise in prices in the last 10 years.


Whoops, I meant 250%

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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Tue Feb 07, 2012 6:58 pm 
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Draugluin wrote:
Lord Hurin wrote:
Yeah, it really shafts WoTR. When I started back in 2001 it was $20 for 24 models, now it's $26.50 for 12. I know inflation and all that, but nearly 150% in 10 years? Seems too high to me... Luckily, like I said, I have (probably more than) enough plastics. Future releases and the current finecast and metals I still want will hurt enough.

A 200% rise in prices would be paying $40 for 24, so paying $53 for 24 now is actually a 265% rise in prices in the last 10 years.

Is that in US dollars? Its $22.25 per boxed set, or $44.50 for 24 warriors. Next, percent increase is calculated with the formula ((new amount-original amount)/original amount). If we are calculating the percent increase for the cost of 24 warriors, then (44.50-20)/(20)=1.225, or around 123%. So over around ten years, the cost of purchasing 24 plastic infantry soldiers has increased by about 123%, which, while not 265%, is still rather ridiculously high.

I was just thinking, with these kinds of prices, Games Workshop will not get the same return from the Hobbit during the "film period" that they did from LotR. Kids and especially their parents would likely end up preferring to buy action figures. Younger teens will likely prefer the video game. Loyal audiences older than these will maybe just get a boxed set to paint. I guess what I'm trying to say is, when I first started LotR, $25 for a paint set was a lot to me (that's not the best example, as the current $30 is a great value, and hasn't increased in price so much), and it really wasn't easy or cheap to get into this hobby. I could barely afford it, I had other interests--I almost just didn't do it. Even without knowing that GW was once cheaper, n00bs, I'll reckon, will be quite put off by the price tags. It's so expensive (at this point, too expensive) and you could get Hobbit branded toys, video games, or board games instead. I think this means that a boxed game for The Hobbit better be good, as I can see a lot of people just buying that, and stopping--but what could it be? Spiders in Mirkwood?
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 Post subject: Re: NEWS: GW repackages infantry boxes and increases prices
PostPosted: Tue Feb 07, 2012 7:46 pm 
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Quote:
So, how do we know GW IS alienating customers? Where do we find this data? I'm rather curious.


Well, it's alienated this one.

Over the last 6 years my purchases have declined steeply from a heck of a lot to nil. In fact, I have not bought any minis from a GW store in about 4 years.

Where I have had units/projects to finish that require GW minis, I have found them second hand. Otherwise I have turned to what are known as proxy miniatures. This is not an odd concept to me, rather it is GW that is the exception in wargaming terms by seeking to own and control the playing of the game system to such an extent that we are expected to source miniatures from a single manufacturer.

Why have I stopped buying GW? Well, partly it's because, as the years go by, I find less and less in the range to interest me. I seldom look at new releases, when I do it simply confirms that the march towards Warhammerish Twaddle has continued unabated. Load of orcs riding on the back of a dinosaur, I mean really.

Price, however, is the main reason. When GW introduced a selection of command figures to coincide with the WOTR, I would have found these great and useful additions. I didn't buy them because the prices were already offensively high. Accross the model-making hobbies prices for white metal and plastic figures have gone up in recent years, but not as rapidly, from such a high base-line and to such an extent as GW's. I am involved in my son's 20mm wargaming, kit building and model railway activities, so I see quite a bit of what's going on in the wider hobby. Large manufacturers (Bachmann and Hornby/Airfix) have hiked up prices noticeably in 2012, but GW has been making such hikes for years and, as a result, their products are disproportionately expensive compared with other suppliers of similar products. GW is ahead of the curve in ramping up prices. Frankly it is taking the Michael and I would now rather hold my arm over a bunson burner than walk out of a GW store with a single overpriced mini.

The lesson I have learnt from my self-imposed boycot? What a lot of money I have wasted over the years in GW stores. I could have saved a fortune buying second-hand or from other manufacturers and probably made 80% of my historic purchases that way. I could have avoided the relentlessly importunate staff as well! By the way, do they train them to be like that or are they bred for the purpose?

I buy the black undercoat and purity seal. Those are great products and better than any alternatives I have tried. Those have been my only purchases from GW for years.

If I do want a GW mini or 2 in the future? All things come to he who waits ... on ebay. They'll get no margin from me.

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