MWG Closing

[Gir]

Doesn't this kind of emphasis GWs point.
The firm is closing because they had no diversity, or the diversity in range was not enough to cover their costs, so the only thing that they did was to route GW sales via a third party.
A company that is soley dependent on one supplier is always going to be at risk if the supplier changed their way of working. Similiarly what would they have done if GW stopped the trade discount althougther so they had to buy at RRP, or decided to wind up operations.
It is ashame for the owner, employees and users, but the goods i.e. GW stock is still readily available elsewhere, albiet at an increased cost.
The resources they provided video tutorials etc was above and beyond what some online sellers produce but in themselves not a money making resource and arguably not adding any greater value than that of a fan site.

Most game shops rely on GW to stay open as they tend to be the best sellers and have good margin for the sellers.

[daboarder]

I just want to say GW is a company so it's up to them theirs not point *****ing about it, and as most people should know business is war and in war their are always casualties. Well not for the necrons but any way the point still stands

Oh go away please, its this ambivalent acceptance of corporate behavior in the name of ever increasing obscene profit, that has lead to the septic nature of the modern economy.

we KNOW that GW is supposedly legally allowed to do this, we KNOW that they have a duty to the company and we KNOW that any indignation on our part is unlikely to change anything, but as rational non-selfish people its still sickens us to see greed taken so far.

[Wolfshade]

I would point out that if we are truely non-selfish then we would be less capitalist and more socialist/communist.

[daboarder]

I would point out that if we are truely non-selfish then we would be less capitalist and more socialist/communist.

happy medium is the key to a society that does not stagnate, degenerate and ultimately destroy itself under its own extremes.

[Caitsidhe]

Most game shops rely on GW to stay open as they tend to be the best sellers and have good margin for the sellers.

Actually, no. Most shops in the U.S. (I can't comment on Australia) are highly diversified and Games Workshop only makes up a fraction of their sales. Games Workshop is taking the "gamble" that they can reroute the online sales to themselves. That remains to be seen. Attacking one's own distribution net (i.e. sales) seems an odd way to go about things particularly as competition grows (and will continue to grow). Sales through online and brick and mortar made the SAME money for Games Workshop. This is important to understand because every online store that closes is lost sales unless they make up those sales with the redirect or location.

I don't expect, since they aren't being offered any more compensation, that most brick and mortar stores are going to carry anymore stock than they did before. Some may stop carrying it altogether if they also have an online store or the other requirements too intrusive. Again, since brick and mortar stores only get more regulated by the new policy, it is no way assures they will make more sales to compensate what was lost (particularly if they supposedly can't adjust the prices the way they see fit). Do you see where this is going?

Games Workshop believes (for some reason) that:

1. Increasing costs across the board to consumers will not lose them sales.
2. Reducing sales outlets in their distribution system will not lose them sales.
3. That bad press will not lose them sales.
4. That increased competition will not lose them sales, particularly when said competition does NOT use said policies.
5. That independent stores (particularly in America) will not react badly to authority and thus hurt sales.
6. That by locking things down they are securing their market rather than creating an even bigger one (like say prohibition).
7. That attempting to manipulate the market across multiple countries won't embroil them in more expensive legal woes.
8. That they can control the internet in the first place when giants like the music and film industry already lost this battle.
9. That nerd-rage and angry consumers is all just hot air and nothing ever comes of it.
10. That they, Games Workshop, ARE the hobby and not just merchants providing for a larger hobby called Wargaming.

Any three of these delusions could be devastating under the right conditions. Think about what all ten can do under any conditions. New game systems are coming out in droves and many of them are quite good. The average quality of the models in these start up companies is coming off very good and getting better all the time. Games Workshop has just HANDED their competition the biggest gift a small, up and coming company can get. They get a MARKET. They get to be the "good guys" who don't put limitations and policies in places to restrict distribution. They don't require minimum stock. They just want their product out there and are lean and hungry, i.e. the perfect supplier for stores and consumers. Think about that, and then consider the wisdom of Games Workshop making this move... now.

[Defenestratus]

Oh go away please, its this ambivalent acceptance of corporate behavior in the name of ever increasing obscene profit, that has lead to the septic nature of the modern economy.

we KNOW that GW is supposedly legally allowed to do this, we KNOW that they have a duty to the company and we KNOW that any indignation on our part is unlikely to change anything, but as rational non-selfish people its still sickens us to see greed taken so far.

As a devout Capitalist, I'm all for GW maximizing its profit, EPS, etc...

What I disagree with is their methods through which they seek to accomplish that. I see the latest retailer policy as bad for their consumers, and therefore in the end, bad for the company. Caitsidhe hit the nail on the head with his post.

[Learn2Eel]

Actually, no. Most shops in the U.S. (I can't comment on Australia) are highly diversified and Games Workshop only makes up a fraction of their sales. Games Workshop is taking the "gamble" that they can reroute the online sales to themselves. That remains to be seen. Attacking one's own distribution net (i.e. sales) seems an odd way to go about things particularly as competition grows (and will continue to grow). Sales through online and brick and mortar made the SAME money for Games Workshop. This is important to understand because every online store that closes is lost sales unless they make up those sales with the redirect or location.

I don't expect, since they aren't being offered any more compensation, that most brick and mortar stores are going to carry anymore stock than they did before. Some may stop carrying it altogether if they also have an online store or the other requirements too intrusive. Again, since brick and mortar stores only get more regulated by the new policy, it is no way assures they will make more sales to compensate what was lost (particularly if they supposedly can't adjust the prices the way they see fit). Do you see where this is going?

Games Workshop believes (for some reason) that:

1. Increasing costs across the board to consumers will not lose them sales.
2. Reducing sales outlets in their distribution system will not lose them sales.
3. That bad press will not lose them sales.
4. That increased competition will not lose them sales, particularly when said competition does NOT use said policies.
5. That independent stores (particularly in America) will not react badly to authority and thus hurt sales.
6. That by locking things down they are securing their market rather than creating an even bigger one (like say prohibition).
7. That attempting to manipulate the market across multiple countries won't embroil them in more expensive legal woes.
8. That they can control the internet in the first place when giants like the music and film industry already lost this battle.
9. That nerd-rage and angry consumers is all just hot air and nothing ever comes of it.
10. That they, Games Workshop, ARE the hobby and not just merchants providing for a larger hobby called Wargaming.

Any three of these delusions could be devastating under the right conditions. Think about what all ten can do under any conditions. New game systems are coming out in droves and many of them are quite good. The average quality of the models in these start up companies is coming off very good and getting better all the time. Games Workshop has just HANDED their competition the biggest gift a small, up and coming company can get. They get a MARKET. They get to be the "good guys" who don't put limitations and policies in places to restrict distribution. They don't require minimum stock. They just want their product out there and are lean and hungry, i.e. the perfect supplier for stores and consumers. Think about that, and then consider the wisdom of Games Workshop making this move... now.

Have to agree here. A lot of there business decisions lately are only going to end in tears - granted, unless they know something we don't.

Sad to hear about MWG (and other affected retailers). I've never bought from there before, but businesses being shut down for no good reason at all is not at all a good look for GW - granted of course that their new policies and the like are not the only factors in play here. From a personal perspective, I can see the "no selling to other countries" policy leading to GW's Australian sales going up in flames; the amount of people I know that buy online because the Australian prices are so ridiculous (granted, as a good friend explained to me our average salary is higher than in North America and many other countries) is staggering, to say the least. Whilst I can afford the higher prices and I don't mind the idea of supporting my local store, there's no doubt that a lot of people will be really upset about this move. Many Aussie war-gamers simply can't afford what we are charged down under, it is an expensive hobby either way but our prices are ridiculously higher than anywhere else (obviously New Zealand is in the same boat as us). Again, it doesn't bother me too much, but I bet a lot of people are going to be incensed by the move...

I'll always support GW as I love WH40K, and have done so for over ten years (since I was a child), but I just hope they are still around in the next ten years, which is what I am betting many are increasingly more worried about.

[Tynskel]

Meh.

The reality is that Games Workshop provides a fantastic product. The price they sell the product is inexpensive (possibly even an order of magnitude inexpensive) in comparison to other products along the same quality.

[Caitsidhe]

I can see the "no selling to other countries" policy leading to GW's Australian sales going up in flames; the amount of people I know that buy online because the Australian prices are so ridiculous (granted, as a good friend explained to me our average salary is higher than in North America and many other countries) is staggering, to say the least.

This is just an alien idea to me. You are buying the same bits of plastic as we are over here. It has no more value in Australia than it does here but they think YOU should pay more. In America we call this discrimination. It wouldn't be legal here because it is clearly based on on where you come from. They might as well be saying, "Screw those Australian guys. They make too much money."

Whilst I can afford the higher prices and I don't mind the idea of supporting my local store, there's no doubt that a lot of people will be really upset about this move. Many Aussie war-gamers simply can't afford what we are charged down under, it is an expensive hobby either way but our prices are ridiculously higher than anywhere else (obviously New Zealand is in the same boat as us). Again, it doesn't bother me too much, but I bet a lot of people are going to be incensed by the move...

As well they should be. I hope they just play the games they like and use models provided by OTHER companies. Plenty of models will continue to be on Ebay and I fully expect plenty of people to get around the silly policy and force Games Workshop to spend money trying to enforce it. Nothing like further killing one's own distribution net, like cutting off the nose to spite the face.

I'll always support GW as I love WH40K, and have done so for over ten years (since I was a child), but I just hope they are still around in the next ten years, which is what I am betting many are increasingly more worried about.

You should be worried. Everything Games Workshop has been doing as well as an EDUCATED look at their quarterly reports indicates a company that is in trouble. They have offset losses by closing stores to try and make themselves look in the black. They invested big in Tolkien brand (and that wasn't cheap I assure you) and have yet to see a real return. They are engaged in more and more legal debacles and bad press. All of these things are a desperate kind of flailing around to secure the old dynasty, an unwillingness to accept the market has changed and they must change with it.

[ElectricPaladin]

Actually, no. Most shops in the U.S. (I can't comment on Australia) are highly diversified and Games Workshop only makes up a fraction of their sales. Games Workshop is taking the "gamble" that they can reroute the online sales to themselves. That remains to be seen. Attacking one's own distribution net (i.e. sales) seems an odd way to go about things particularly as competition grows (and will continue to grow). Sales through online and brick and mortar made the SAME money for Games Workshop. This is important to understand because every online store that closes is lost sales unless they make up those sales with the redirect or location.

I don't expect, since they aren't being offered any more compensation, that most brick and mortar stores are going to carry anymore stock than they did before. Some may stop carrying it altogether if they also have an online store or the other requirements too intrusive. Again, since brick and mortar stores only get more regulated by the new policy, it is no way assures they will make more sales to compensate what was lost (particularly if they supposedly can't adjust the prices the way they see fit). Do you see where this is going?

Games Workshop believes (for some reason) that:

1. Increasing costs across the board to consumers will not lose them sales.
2. Reducing sales outlets in their distribution system will not lose them sales.
3. That bad press will not lose them sales.
4. That increased competition will not lose them sales, particularly when said competition does NOT use said policies.
5. That independent stores (particularly in America) will not react badly to authority and thus hurt sales.
6. That by locking things down they are securing their market rather than creating an even bigger one (like say prohibition).
7. That attempting to manipulate the market across multiple countries won't embroil them in more expensive legal woes.
8. That they can control the internet in the first place when giants like the music and film industry already lost this battle.
9. That nerd-rage and angry consumers is all just hot air and nothing ever comes of it.
10. That they, Games Workshop, ARE the hobby and not just merchants providing for a larger hobby called Wargaming.

Any three of these delusions could be devastating under the right conditions. Think about what all ten can do under any conditions. New game systems are coming out in droves and many of them are quite good. The average quality of the models in these start up companies is coming off very good and getting better all the time. Games Workshop has just HANDED their competition the biggest gift a small, up and coming company can get. They get a MARKET. They get to be the "good guys" who don't put limitations and policies in places to restrict distribution. They don't require minimum stock. They just want their product out there and are lean and hungry, i.e. the perfect supplier for stores and consumers. Think about that, and then consider the wisdom of Games Workshop making this move... now.

Basically? I agree.

Games Workshop suffers - and has, for a long time - from Only Game In Town Syndrome (OGITS). Wizards of the Coast and TSR both suffered from OGITS in their day. Companies suffering from OGITS are under the delusion that their customers have no other options. They will continue to abuse their customers, ignore their input, ignore their desires, and refuse to spend time and energy upgrading their product and PR practices to match the modern day.

The thing is, GW isn't the only game in town. GW sells their rulebooks for $60? Corvus Belli releases theirs for free. GW releases models months and years after the books come out? Privateer Press releases them months before the books come out. GW starts releasing models in an inferior medium at higher prices? PP makes the jump to plastic and lowers prices. GW will eventually feel the hurt as their practices drive customers away. Some people I know theorize that the new push in 6th to balance the rules are part of that dawning realization.

Fortunately, GW is a big company and this is unlikely to kill them. If they have half a brain in charge, sooner or later, they'll realize that they have OGITS and try to change course.