Soldato
- Joined
- 7 Dec 2005
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- 8,010
- Location
- Wiltshire
Edinburgh Games Workshop
- Thread starter Alan!
- Start date
No I know exactly what costs are involved and that they are being sold for far more than the total cost to make them including wages and everything else.
Ironically before they put the prices up by over 50% they were selling in relativley high volume, as gw have put the prices up by a certain % the revenue has decreased by the same %, showing games workshops complete lack of understanding of elasticity.
By that logic, console games should cost about £2 each. What's the raw materials cost for the Mona Lisa? I'm thinking about buying it.
No because consoles games are sold based on intellectual property, complete straw man.
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Indeed, i think there's nothing sad about doing something you enjoy, world would be a dull place if we all enjoyed doing the same things.
75% of revenue is spent in operating costs while 34% is spent in cost of sales (i.e. cost to produce the items). What lovely profit margins of 1%
Luckily they've pulled their finger out and have started cost cutting exercises.
Probably didn't help.
75% of revenue is spent in operating costs while 34% is spent in cost of sales (i.e. cost to produce the items). What lovely profit margins of 1%
Their operating profit is 2.8% and that's because they were so inept at handling their finances, the ceo had to be fired. In 2004 the profit was 13%, but putting the prices up was the start of their doom.
Soldato
- Joined
- 4 May 2006
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- 3,361
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- Manchester
I've nothing against GW or the games, I used to play BloodBowl myself actually. It's just, the shops i've been in (Belfast, Manchester, Southampton) Smell really bad
Charging £20 for a box of models that cost 1p to manufacture, oh and this:
They're are going to stop making the Metal model's because they simply dont yield enough profit, As gilly said it cost's a fair bit more than 1p in production.
I already said I was exaggerating. It's excellent if they are stopping production of metal models, they were always so incredibly expensive compared to the plastic ones, they sold them for £2 per model compared to £1 per plastic model and I always found the so called extra detail, to be imperceptible anyway.
I still collect and Metal Model's are a pain when you get bit's of bulk on the model, plastic model's with a weight on the bottom are always a better quality, they're also much more easier to paint for some reason and the paint doesn't chip off.
Surprised it took them this long.
Soldato
- Joined
- 3 Mar 2008
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Your suggesting prices went up 50% in one go, i cant remember when they did.
The reason why revenue went down was the lord of the rings bubble burst and they had nothing to replace it with, so this downturn in revenue you are looking at is simply return to normal trading figures.
Thats why we got apolcypse, a good reason to sell more minatures, and the following year a new edition of 40K and a new marine codex the following that. Ever wondered why they were released out of cycle.
They are delaying on the thunderhawk gunship for when planet strike is released.
the trading downturn is not due in the main to increased prices but just the LORT bubble bursting
In fact, in real terms GW is offering better value for money.
The very first box set i purchased was a 10 man box of Angels Marines, the one with the Lascannon, and plasma gun. that cost me £15 for 10 metal minatures
look at the tactical box set now. only £18 and you get so much more.
Terminators on the other hand have gone up from £25 a box to £35 a box.
reason being, high investment costs and most people will only buy 1 or 2 for their army.
I wont even start on the value for money you get in the new starter set.
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Yeah, Black reach is like £100+ of models for £49.
They're phasing out metal models because pewter is becoming more and more expensive to manufacture due to raw materials cost. The upside to pewter is that the moulds are a fraction of the cost of those for the plastic models. The investment in more plastic moulds is an expensive one so they'll do it over time. Plastic moulds have to be replaced more often too, which increases cost.
In all, they've done a pretty decent job with prices. Increases on the elite models, and fantastic deals in the box sets, especially black reach as mentioned.
They're phasing out metal models because pewter is becoming more and more expensive to manufacture due to raw materials cost. The upside to pewter is that the moulds are a fraction of the cost of those for the plastic models. The investment in more plastic moulds is an expensive one so they'll do it over time. Plastic moulds have to be replaced more often too, which increases cost.
In all, they've done a pretty decent job with prices. Increases on the elite models, and fantastic deals in the box sets, especially black reach as mentioned.
Soldato
- Joined
- 3 Mar 2008
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exactly, i want a box a terminators, so ill just pay the extra fiver and get a whole load more, yeah they will be snap fit one, but interspersed with my normal terminators no one will notice or care
In all fairness, video games are pretty much pick up and play and don't require the nerdy desire to read the history of a lascannon. Warhammer is way geekier.
Soldato
- Joined
- 3 Mar 2008
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way geekier than WOW?