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post #1 of 57 (permalink) Old 08-17-13, 03:08 PM Thread Starter
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Default Future of GW business article

So I found this on one of the blogs I read regularly and a lot of it actually makes sense, I often find it hard when people post up stuff about GW business results to understand most of it as it is huge chunks of text that to be honest I can't be asked to read. BUt this article explains it in leymans terms and it actually makes a lot of sense, I'm don't agree with a lot of GW's business choices but it seem fairly justified from what I have read here.

Have a look it's pretty darn interestin': http://masterminis.blogspot.de/2013/...-workshop.html

Me: To be honest im amazed there isn't a chaos god of not revising or at least chaos god of procrastination

MidnightSun: There will be, when enough people do it. Y'know when the Eldar were all engaging in their hedonism and Slaanesh ripped open the Eye of Terror with his creation? Slaanesh will have NOTHING on the God of Procrastination, and his vile minions will carve the galaxy asunder in a thousand year reign of blood.... Tomorrow
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post #2 of 57 (permalink) Old 08-17-13, 05:47 PM
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Great article, really helps me understand what the reasons are, since im not a business major or anything like that. But it does make me think....


The shareholders are the reason for price hikes eh. Me thinks a plan is forming in my noodle. Lets me just polish my axe......
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post #3 of 57 (permalink) Old 08-17-13, 08:02 PM
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Is it GW standard OP to have staff so damn ugly that letting them live is against all planetary human rights laws, matt ward is bad, but I never realized how Fugly Tom Kirby is, I'd punch him just as a natural reaction to defend myself, that's without knowing who he was.

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post #4 of 57 (permalink) Old 08-17-13, 09:11 PM
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Because you need to be pretty to make war games.....

http://i.imgur.com/aPfHUHy.gif?1




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post #5 of 57 (permalink) Old 08-17-13, 10:13 PM
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Quote:
Originally Posted by Stella Cadente View Post
Is it GW standard OP to have staff so damn ugly that letting them live is against all planetary human rights laws, matt ward is bad, but I never realized how Fugly Tom Kirby is, I'd punch him just as a natural reaction to defend myself, that's without knowing who he was.
Congratulations. Your vanity and superiority complex has relegated you to a whole new division of sub human.

On topic:

It is a shame that share holders who are by and large not hobbyists are causing such drastic price rises. Also sad that GW is more interested in making them happy than customers. Would be nice if they could suddenly become that one company that goes "no!! Profit be damned! As long as we break even and our fans are happy, so are we!! Huzzah, huzzah! Huzzah!"

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post #6 of 57 (permalink) Old 08-17-13, 10:46 PM
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There is not a company on the planet that seeks to break even. Profit is the point of business.
Would you go to work simply to earn a wage that only covers your living expenses ?

Given the sales, the customers are happy, so why drop the price?

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post #7 of 57 (permalink) Old 08-17-13, 11:09 PM
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Ah but customers arnt, they are losing customers but the ones they have are spending more. There is only so long you can keep raising prices and losing customers and keep the product in a range that those left will spend more. It's a slow death if you ask me.

And as for the break even thing, I say that kiddingly. But what a utopia it would be eh!

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post #8 of 57 (permalink) Old 08-18-13, 12:08 AM
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While the point of business is indeed to turn a profit, the problem is that if your business model is "Profit at all costs" eventually you will drive your customer base (the people who give you their hard earned cash) away.

They are losing customers but (according to them) all is well because the remaining customers are spending more. The remaining customers HAVE to spend more based on increases prices and smaller unit sizes.

So GW will continue to "bleed" customers until they are hoping a handful of uber rich gamers will spend obscene cash to purchase the left arm (weapon not included) for a single figure.

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post #9 of 57 (permalink) Old 08-18-13, 12:09 AM
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While the point of business is indeed to turn a profit, the problem is that if your business model is "Profit at all costs" eventually you will drive your customer base (the people who give you their hard earned cash) away.

They are losing customers but (according to them) all is well because the remaining customers are spending more. The remaining customers HAVE to spend more based on increases prices and smaller unit sizes.

So GW will continue to "bleed" customers until they are hoping a handful of uber rich gamers will spend obscene cash to purchase the left arm (weapon not included) for a single figure.

Doc

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post #10 of 57 (permalink) Old 08-18-13, 01:05 AM
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As others have said, losing customers but the customers who remain spend more isn't an ideal business model and ultimately I can't see as being sustainable for a product like GW sells.

While I can give respect to GW upper management for increasing profits and being good at their jobs from a shareholder perspective I don't think that it is in the ultimate best interests of the company to put shareholders as the number 1 priority. At the moment GW can act this way because they have a significant hold on the market. That will change. 8 years ago I have never heard of any other war game than GW ones, now I can rattle of 10 probably off the top of my head, 4 of which I'm very tempted to get into but won't because of the backlog of GW related projects I have. When those are finished will I look to other systems? Yes I will. Not because I am bored of the 40k or FB 'verse (I'm as interested in it as ever) but because of GW's business policies. Not necessarily the price (because other systems will no doubt be of a similar buy into price) but because of the way that GW is focusing on shareholder as number 1 and not an equal focus on customer loyalty and shareholder growth and after all what causes shareholder growth? Customer base, which, while spending more per customer, is not growing and is decreasing. That is not good for a business because it is relying on customer loyalty which can be lost (and is being lost).

The local GW manager made this comment the other day when the subject of Infinity and GW's superior range of plastic, multipart kits came up: "They are where GW was 20 years ago", well Infinity's posing and model quality is far far far superior to GW's minis from 20 years ago but I know what he means and agree, no other company has such an extensive range of customisable kits as GW. At the moment. That will change and in the future as other companies expand their ranges and grow in size I think GW will find themselves having to face a realisation that shareholder returns are going to drop as a result of their "shareholder #1 at all costs" policy that they currently have. It may not happen tomorrow but if their current business practice continues it will happen. Asking a diminishing customer group to pay 10% more per product per year when the customer's income is not increasing at 10% or more is not a recipe for success ultimately.
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