Games Workshop Monopoly?
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10,179 Posts
yes its those little black and red shops they provide for people to play the games in
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1,067 Posts
Ah, i see. They lose thier money on keeping thier stores.
I mean, GW has very few competitors that are to the same standard.
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1,094 Posts
The prices charged by GW can't be boiled down to something so simplistic. There are a huge variety of reasons for why the price points are as they are. The money spent on the renting of stores, paying the wages of the staff who work there, making sure there is the stock available to fill those stores, transporting the stock to those stores and sundry others expenses I wouldn't know about- these are just a small portion of the money GW spends.
After that, or before it I suppose, you have the huge amount of cash that is spent on R&D for new plastics technology, the plants used to make the moulds/inject the plastic, the place where the kits are boxed-up, the money to pay the staff in these places, the cost of transporting the boxes to and from these sites to the stores...
Then there is the cost of the main studio and all of the creative people who work there. Probably the most onerous commitment is the interest the company will be paying on their bank loans.
It is a complex equation for the comany to work out how much they will charge so that the product remains affordable and, yet, turns a profit that allows the company to grow. The prices GW charge are, in my opinion, fair for what you get. Others don't think so and that is fine. But what would be really beneficial is for people to actually look into the economics of the GW situation, or just economics of markets in general, and get some idea of how the world works (price rises each year happen because of inflation and by the banks raising their interest rates, this latter being the one with the scope to cause the most harm). GW is far from having a monopoly on models, although I agree that, for the most part, they are some of the best.
If GW did have a monopoly (virtual or full), then there are laws that stop comapnies in this position from gouging customers with massively inflated prices. And no, you can't take advantage of these laws because they wouldn't apply to GW, partly because they don't have a monopoly and partly because the purchase of these items is competely volountary as it is a luxury item (IE one that is useful only for fun/recreation).
GFP
After that, or before it I suppose, you have the huge amount of cash that is spent on R&D for new plastics technology, the plants used to make the moulds/inject the plastic, the place where the kits are boxed-up, the money to pay the staff in these places, the cost of transporting the boxes to and from these sites to the stores...
Then there is the cost of the main studio and all of the creative people who work there. Probably the most onerous commitment is the interest the company will be paying on their bank loans.
It is a complex equation for the comany to work out how much they will charge so that the product remains affordable and, yet, turns a profit that allows the company to grow. The prices GW charge are, in my opinion, fair for what you get. Others don't think so and that is fine. But what would be really beneficial is for people to actually look into the economics of the GW situation, or just economics of markets in general, and get some idea of how the world works (price rises each year happen because of inflation and by the banks raising their interest rates, this latter being the one with the scope to cause the most harm). GW is far from having a monopoly on models, although I agree that, for the most part, they are some of the best.
If GW did have a monopoly (virtual or full), then there are laws that stop comapnies in this position from gouging customers with massively inflated prices. And no, you can't take advantage of these laws because they wouldn't apply to GW, partly because they don't have a monopoly and partly because the purchase of these items is competely volountary as it is a luxury item (IE one that is useful only for fun/recreation).
GFP
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3,808 Posts
A few stores in towns near me have closed down because of little to no turn over.
Staff have been laid off in my local store, there is only the manager on e one other guy left from there being about 5 not including the manager.
The guy that does work there has to bring in all the stock himself, when they need it, which is rare because they aren't selling much anymore.... its the biggest one in the country :shok:
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1,067 Posts
While on one hand, I would like less expensive minis. I wouldn't want GW stores to close.
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10,179 Posts
Actually GFP GW have been investigated and had action taken by the monopolies commission before today, this is one of the reason the company has several sub companies, though this was way back in the 90s.
They are certainly the dominant force in the market and rightly so in my opinion, they have literally carved this hobby out from nothing and none of there competition is anywere near them in sales or product. Granted they are not perfect and they could be quicker and better but all in all i prefer them to anything else on the market.
They are certainly the dominant force in the market and rightly so in my opinion, they have literally carved this hobby out from nothing and none of there competition is anywere near them in sales or product. Granted they are not perfect and they could be quicker and better but all in all i prefer them to anything else on the market.
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10,179 Posts
there is a retail argument that you could actually have both, but ultimately you will only ever spend what you can afford or only what you need to on luxury items such as minis.While on one hand, I would like less expensive minis. I wouldn't want GW stores to close.
If you building a marine army and you have decided you need 5 terminators and have £30 to spend you not likely to buy two sets for £40 if they were £20 each instead of £27.50 ....but if you were buying food and the same scenario presented itself you might spend the extra £10 for the £40 total to save yourself £15 on something you can store and eat.
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10,179 Posts
Personally i dont think they are a threat, most people who discover PP do so via GW, GW has survived so long because it has shops and you simply cant argue against the benefit of providing a place to use the products you sell.
The stores are the one element that no other games company would dare to sink money into, but its the one think GW cant afford to give up because its the thing that separates them from the rest of the wargames companies.
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3,808 Posts
I Agree, Its their strongest point.
Lets just hope they don't have to give it up because of falling profits
SGMAlice
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10,179 Posts
what makes you think they have falling profits? GW did very well in the last financial year.
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1,067 Posts
While it would definatly lower costs, GW would have to be online/mailorder only.
It would be harder to get new people to discover the games, as they can't just wander into the store.
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7,045 Posts
Yes but don't most GW stores also sell PP? I can play PP at all the GW stores I have ever been to. And, tbh, I have a lot of friends and I know a lot of other people who have droped buying new GW product for new PP models. Also, PP provides a better system, atleast from a rules standpoint, and their models are of equal quality. I know you hate PP but it has the potential to be a real pain in the ass for GW in the future.
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10,179 Posts
One store does not melt a company, like i say there profits were up from 5.5 million for 2009 to 13 million for 2010 and they have cleared the debts caused by failing stores a few years back.
And no genhab you cant buy PP or play it in a GW store, infact if your GW store is selling and allowing the play of non GW games they are breaking the company rules or they are not a GW store and likely an Indie store
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10,179 Posts
never have and never will, sales are to clear seasonal stock to make space for new season products(this is why clothes shops have a sale every 12 weeks)
GW do not have seasonal or perishable products so no need to have a sale, last actual genuine sale i can remember was when they swapped from lead to white metal after the lead ban,anything after that has been to promote a new store.
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7,045 Posts
Makes sense. Still, the fact remains that PP has the ability to be a pain in the ass of GW. I think most stores in the US are Indie, same might be true for the UK but I don't live there, and PP makes one hell of a game. Again though, I said they really won't be a real threat for quite some time.
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