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  Topic Review (Newest First)
07-30-11 12:34 PM
Archermonkey I don't know how much credit I'd put in that - it does seem a bit too risky as a strategy, to be honest, and overly-complicated. But the first part seems pretty accurate so far!
07-30-11 11:17 AM
Achaylus72 I can remember a vid a while back from some guy who clearly spelt out in which direction GW is heading.

This seems far fetched but it has merit.

In this, GW manufactures a crisis within its own company, habitual price rises, the embargo and other things to piss off its customers.

What happens is that companies like Privateer Press begin to rapidly expand due to demand from pissed of ex GW customers.

More and more GW loses market share to companies like Privater Press.

Companies like Privateer Press are pouring vast sums of money into expansion, they are riding on a wave of hightened demand.

At some point companies like Privateer Press over-reach themselves.

Then

GW then goes boom, hits the market like a tsunami.

GW first begins to shut out the Indies, rapidly expanding their Bricks and Mortar stores, this has the effect if you want to buy GW products you have to go to a GW store as it is all in house. Then this they follow-up by cutting their prices, to levels that Privateer Press can't compete with.

Ex GW customers are happy, they ditch their Warhordes in their droves and begin to purchase their GW product again. Many indies will go out of business and Privateer Press is left high and dry, and most likey ready to file Bankrupt Protection
07-30-11 05:10 AM
HOBO
Quote:
Originally Posted by maddermax View Post
I think their sudden spike in demand is a bit dangerous though, as they'll be pissing off some customers with long wait times on their orders, and retailers who have problems getting stock in. We'll see, but they've definitely been riding a wave for the last year or so.
A friend of mine who owns a LGS is having this exact drama with some people.
Some simply don't like waiting for their models, irregardless of what caused the delay, so orders have been lost...which does hurt business.

I'm in the process of building/buying a couple of Hoards lists and there's several models I want that are missing from the core list, so I'll just have to wait until PP catches up on their production upgrade...luckily patience is one of my virtues
07-30-11 04:50 AM
Archermonkey
Quote:
Originally Posted by maddermax View Post
They've actually declared they won't be releasing any new models during both September and November, in order to catch up on their back orders as they try to ramp up production. They've also had to create a separate "core orders" list, as a temporary measure, which are core models that they say will definitely be available without a backlog, so stores can keep stock on shelves. I think their sudden spike in demand is a bit dangerous though, as they'll be pissing off some customers with long wait times on their orders, and retailers who have problems getting stock in. We'll see, but they've definitely been riding a wave for the last year or so.
Seriously? And no-one in GW upper management has considered that it might be something to do with their own policies and pricing schemes that is losing them market share? That kind of arrogance astounds and saddens me.

GW Peon: Sir, the latest sales figures are in. Our profit margins are falling, still.
Tom Kirby: Then we must raise prices! Again!
GW Peon: But sir, customer feedback suggests that the prices are one of the reasons that--
Tom Kirby: SILENCE! Our customers are far too loyal to waste money frivolously on things like rent, utility bills, groceries, or petrol. They will pay. And to prove to them how good our customer service is, we shall assassinate all of the online vendors, sacrificing them to Khaine...
07-30-11 04:24 AM
maddermax Yep.

Quote:
Originally Posted by Warlock in Training View Post
I wonder whats Privateer Press sales look like after all the Shit GW pulled at once? Future Price Hikes ain't going to help.
They've actually declared they won't be releasing any new models during both September and November, in order to catch up on their back orders as they try to ramp up production. They've also had to create a separate "core orders" list, as a temporary measure, which are core models that they say will definitely be available without a backlog, so stores can keep stock on shelves. I think their sudden spike in demand is a bit dangerous though, as they'll be pissing off some customers with long wait times on their orders, and retailers who have problems getting stock in. We'll see, but they've definitely been riding a wave for the last year or so.
07-30-11 03:09 AM
Necrosis
Quote:
Originally Posted by Warlock in Training View Post
I wonder whats Privateer Press sales look like after all the Shit GW pulled at once? Future Price Hikes ain't going to help.
It's so high they can't even keep with all their orders.
07-30-11 02:48 AM
Warlock in Training I wonder whats Privateer Press sales look like after all the Shit GW pulled at once? Future Price Hikes ain't going to help.
07-30-11 02:19 AM
Achaylus72
Quote:
Originally Posted by Archermonkey View Post
I haven't heard those details myself, but they don't surprise me terribly much. I do know that there are some Australian importers that are getting by quite well, however - I work for one (a comic shop which has a behind-the-scenes wholesale aspect which supplies stock to most of the comic stores in the state, excepting a few of the larger ones). I'm not disagreeing with you on general terms, nor do I know the details well enough to agree or disagree specifically, but I do know this: none of that changes the fact that GW are getting a much, much higher profit margin from selling their products in Australia due to the monetary conversion rates. They were making a profit before the Australian dollar went up. They didn't adjust their prices down, so that they could use that to get better profits. Now they are trying to kill competition. How much of the Australian market do you think they'd lose to online sales if their prices were only 10-20% above the British ones? Or even 30%? The GW stores undeniably offer a service, and all other things being equal, I'd prefer to buy from them than from a place where I get no customer service, have to wait several weeks for my purchases, and cannot get the games and painting tips, etc that GW stores provide. Instead, they charge more like 80% on top of the British prices, making the difference too great to justify buying from their stores, even with the positives that come from doing so.
I agree, it would please me more if i could walk into my local GW and go on a spending spree but i can't knowingly justify paying the 87.5%* mark up above British and US Prices.

I keep using this as an example

Wayland Games gets its RoW operations up and running and it charges the same price on its RoW range as it does with its regular domestic range.

So i log on and decide that i want to buy 2 x Chaos Space Marine Battleforces this will set me back $155.79AuD this includes postage.

But here in Australia if i walk into my local GW B & M store or online store or local indie and decide to buy just 1 x Chaos Space Marine Battleforce i will pay $180 AuD, so for the same price as 1 x Chaos Space Marine Battleforce here in Australia i can get 2 from overseas fully delivered and i still get $24.21 AuD in change.

That converted to USD is $198.13USD, compared with US shelf price of $110.00USD that is a whopping $88.13USD more expensive.
07-30-11 01:54 AM
Archermonkey
Quote:
Originally Posted by Achaylus72 View Post
I absolutely agree,but also we have seen hundreds of businesses some major businesses having to completely shut their doors or in the process of shutting their doors because they can't compete especially with online retail shopping via overseas vendors, where as Australian are getting bang for our buck.

Not only this but recent reports on Australian Consumers of Australian businesses especially in the retail sector indicates that customer relationship is very poor, it does not help the situation for Australian Retailer out there that we have the worst customer service and sales staff in the western world.

People are now voting with their feet and fingers. Another main problem with Australian Businesses and that is they are very slow to change.
I haven't heard those details myself, but they don't surprise me terribly much. I do know that there are some Australian importers that are getting by quite well, however - I work for one (a comic shop which has a behind-the-scenes wholesale aspect which supplies stock to most of the comic stores in the state, excepting a few of the larger ones). I'm not disagreeing with you on general terms, nor do I know the details well enough to agree or disagree specifically, but I do know this: none of that changes the fact that GW are getting a much, much higher profit margin from selling their products in Australia due to the monetary conversion rates. They were making a profit before the Australian dollar went up. They didn't adjust their prices down, so that they could use that to get better profits. Now they are trying to kill competition. How much of the Australian market do you think they'd lose to online sales if their prices were only 10-20% above the British ones? Or even 30%? The GW stores undeniably offer a service, and all other things being equal, I'd prefer to buy from them than from a place where I get no customer service, have to wait several weeks for my purchases, and cannot get the games and painting tips, etc that GW stores provide. Instead, they charge more like 80% on top of the British prices, making the difference too great to justify buying from their stores, even with the positives that come from doing so.
07-30-11 12:53 AM
Achaylus72
Quote:
Originally Posted by Archermonkey View Post
I understand these factors (though I believe some of them are exaggerated), and I know that they play into the pricing that we get here. But that doesn't say word one about why they simply rode the increase of the Australian dollar to higher profits. Were thy running at a loss before the dollar improved? I doubt it somehow. Yet when the Australian dollar improved, they simply took that as an opportunity to line their pockets with the conversion rates, and expect us to continue buying from them at what have become over-inflated prices. That's why it's now so much more cost-effective to buy from online vendors - the fact that our dollar is stronger has adjusted the price of buying from international retailers with our money.

Many Australian importers have lowered their prices as a result, because our money now buys more on the world market. That is entirely aside from the issue of insurance or any other local cost. It is, in fact, the way that a competitive market is supposed to work, by forcing price adjustments so that the consumer pays a fair price. What GW is trying to do is to kill the competition, thus allowing them to continue to charge prices which are vastly (and continually) over-inflated relics of a time when our dollar was worth roughly US$0.70, not about US$1.05 as it is now.
I absolutely agree,but also we have seen hundreds of businesses some major businesses having to completely shut their doors or in the process of shutting their doors because they can't compete especially with online retail shopping via overseas vendors, where as Australian are getting bang for our buck.

Not only this but recent reports on Australian Consumers of Australian businesses especially in the retail sector indicates that customer relationship is very poor, it does not help the situation for Australian Retailer out there that we have the worst customer service and sales staff in the western world.

People are now voting with their feet and fingers. Another main problem with Australian Businesses and that is they are very slow to change.
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