There's also the price argument.

Trouble is, GW have a setup the small companies simply don't. That means they need to ensure a certain level of turnover to avoid going into the red, and a terminal decline.

If GW delivered a price cut, of any size, the small companies could still sell at a lower price. That's a no win situation for GW. Yes, they could shut down all their stores, which some in the gaming community advocate - but that would threaten their overall market dominance, and leave them open to the vagaries of third party sellers.

What vagaries? Well, contrary to some claims, indie stores go out of business because they're not terribly good at running a business rather than GW trying to squeeze them out. It takes a competent sales person to set up their own shop selling anything, let alone niche interest stuff like our precious plastic crack. Another one - third party seller success requires their endorsement of your product. I for instance don't really enjoy Warmahordes, so would find it harder to sell than GW stuff. Whether anyone agrees with my own preferences is immaterial there. But, GW stores remove much of that (sadly, incompetent sales people are almost impossible to eradicate!).

So price overall is GW's achilles heel. They could make a cut, but it would require an equal percentage rise in sales - the deeper the cut, the less likely that is to actually happen. I dunno about anyone else, but I set a cash value budget each month, rather a unit based one, so GW would be unlikely to see the corresponding rise in sales volumes from me. No, I'm not the be all and end all, just using my own situation for illustrative purposes. And if the cut is small, say 5% - it won't make enough of a difference for most to really benefit.

Even if they did do a 25% cut say, and managed to increase their sales to compensate - the small companies could do much the same, and in some cases wouldn't need to, and still be cheaper.

So it's not something we're ever likely to see GW tackle effectively, because they just can't.