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Hi Librarium Online!
I'm trying to figure out the whole price increase thing. I am going to babble a lot, so please bear with me.
GW is raising it's retail prices. Why?
Lately I have been hearing a lot about discount mail order and Ebay. I don't blame anyone for taking these options, we are in a recession, and not everyone has a local game store to help support through purchases anyway. But, so Games Workshop and local Game Stores that can't afford to discount so heavily lose a lot of business, yes?
Now, I imagine GW budgets based on it's retail prices. If everyone sells at Retail Prices, then people will also shop at GW and their local stores. GW gets to make a lot of money through direct sales, right? This surplus can help fund GW local stores and pay for the mail order Trolls.
But when everyone starts to stop buying from GW directly, then this source of income starts to dry up. Their main source of income becomes the discount mail order outlets. So how do they make up for the money they aren't making because everyone is ignoring their suggested retail?
Raise the retail. That way, the discounters pay a little more wholesale price which makes up for the money that GW stopped making because the discounters drew business away from their direct sales. This (presumably) puts the company's budget back in lines with it's original projections.
Now, we could talk about whether GW is overpriced for the cost of pewter and plastic, but that is another topic well discussed in other threads. I am just trying to figure out if essentially GW is raising prices 10-50% to make the wholesalers pay them for the business that GW lost in direct sales, you know?
If GW actually lowered their prices, the discounters would lower theirs too. So the total amount of money GW was making would dry up. I want GW to have nice prices too, but I really can't see how they could possibly drop prices.
It would be very interesting to find out what percentage of people buy models from discounters vs. full retail buyers. Because, if 99% of the population was buying from discounters, then the new price of a $50 box set isn't -really- $50, cause 99% of the people are only paying $40 from discounters, right? Which is about what GW was charging full retail last September?
I'm not trying to judge anyone in this pattern. Discounters need to make a living and sell product. GW needs to make a living and sell product. Gamers only have so much money and have to make hard choices how to spend it.
God bless you all, each and every one of you!