Token Trans Mod
Join Date: May 2011
Location: On the internet.
No, this is not a thread where I'll be bitching, nor do I really want it to turn into one where everyone else is either.
Because of some back and forth I was having with someone I went and pulled GW's investor information and found a breakdown of their revenue and where it all goes. And that got some wheels turning. While I couldn't tell you how much every single thing costs I could do a little comparative look at something and show where all the money goes and how much GW actually makes off of it.
Now because I didn't want to throw things off, nor did I want to work out a 4 year average for each category I went with sticking to an item that is still priced the same in their 2013 fiscal year: Kalibite Warriors.
Now a small note before we get too deep: Cost of Goods Sold (which says how much it costs the company to make what they sold) and Operating costs are fixed amounts. They don't change, but what we're showing isn't how much it actually costs, just how much is paid into each from a single box of Kalibites.
So first I calculated what percentage of the a given thing went where:
Cost of Goods Sold (CoGS): 27%
Operating Expenses(Sales, Admin, ect): 57%
In the UK a box of Kalibites costs 18GBP. While currency doesn't matter because GW reports no losses or gains on currency exchange, so we can look at whatever, I felt sticking to the Pound would keep people from yelling at me later. So we take that number and multiply it by our percentages and sees what comes out (all amounts of course are in GBP):
Operating Expenses: 10.26
And here we can see that GW only made a little over 2 quid in actual profits off that box of Kalibites if they sell it for full price. Now as FLGS don't pay as much let's take 60% of that original price (what an FLGS typically pays on non-direct only items), which is 10.80GBP, and see what comes out next:
Operating Expenses: 6.156
Now I know that there is a fixed cost on each item, and on their operating expenses, but remember, this is just how much of the item is being paid into covering that cost, not how much that item is actually costing them to make. And yes, we can clearly see that GW only makes 1.20 quid on a box of Kalibites when they sell it to your FLGS.
So based on a comparative break down of what things are sold for vs the percentages of where it goes, GW really isn't running us through the ringer as much as people claim. The amount of money they make on something is a lot lower than I've heard claims of in the past as this gives us a better picture of how the money from a product gets divided up.
Well I thought it was interesting anyways.
Last edited by Zion; 12-12-13 at 03:34 PM.