BOLS frontpage and Faeit gone?

[OrksOrksOrks]

I'll accept you couldn't reduce as low for fixed costs reasons but, there will be an optimum point that will be a peak on a graph, and by being in decline they have passed that point.

No they haven't, they're making more profits than before they increased prices. thats the optimum situation! I really don't understand how you're failing to grasp this. The point on the graph where they want to be is where the profits are highest, thats where they are now, sale volumes don't matter to a company like this, they make a high end luxury product, not cheap, disposible stuff, they want to make as much money as possible and thats what they're doing.

[Kirsten]

yes but selling each box for maximum profit does not automatically mean they make more money than if they were to sell more boxes for less profit each.

I used to work for a brewery that shared your mentality, 'times are good, put prices up! times are bad, better put prices up!' doesn't mean healthy sales.

[Psychosplodge]

No they haven't, they're making more profits than before they increased prices. thats the optimum situation! I really don't understand how you're failing to grasp this. The point on the graph where they want to be is where the profits are highest, thats where they are now, sale volumes don't matter to a company like this, they make a high end luxury product, not cheap, disposible stuff, they want to make as much money as possible and thats what they're doing.

That's a mixture of greed and short termism

[Wolfshade]

In your survey you showed that for a tactical box we have to work an everage of just over 5 hours.. Here's a reality check (in a pure friendly way ) in most cases people here earn between 1-2£ per hour.. so that puts us at a point when you have to work for 10-11 hours for a single tactical squad. this is why so many people here are pissed by the prices going up.

I try to use only the countries officially published figures or oecd data rather than peoples experainces so as to avoid any selection bias of peoples experiances, as generally, people have friends and live near people who are in the same socio-economic group, i.e. people in similiar employment status.

For instance if I did the survey of people living london oand the same in the north east (of England) the average salary difference is somewhere in the region of 7/8k, then narrow that down to towns/areas within those differences become even larger.

[OrksOrksOrks]

yes but selling each box for maximum profit does not automatically mean they make more money than if they were to sell more boxes for less profit each.

I used to work for a brewery that shared your mentality, 'times are good, put prices up! times are bad, better put prices up!' doesn't mean healthy sales.

Thats not what GW have done though, they've worked out how many customers they can lose by increasing prices and still increase profits, this has worked for them and the earnings reports show that.

That's a mixture of greed and short termism

Thats what capatalism is.

[Caitsidhe]

The only issue is that Games Workshop continues to operate as if they are the only game in town. They don't accept that there is competition. They don't accept that technology has changed. They don't want to believe that they are NO LONGER making a luxury item. Wargaming has always gone in cycles. Games Workshop broke in when the cycle was at a low. They were producing what amounted to luxury products and were the only reliable source. Once a market was perceived to exist, more people got into it. The technology now allows other people to quickly get to the level of quality it took Games Workshop years to do. These problems aren't going to go away. I've got my popcorn and find it all very entertaining.

*What is beyond all doubt is that Games Workshop has a public relations problem. It is silly to blame that on the nameless faces of the internet. Companies that have a bad image bring it on themselves. Where there is smoke, there is fire. Do I think they can fix it? Sure. Do I think they will fix it? No. They have shown time and time again that they believe that you can force a square peg into a round hole. They are firm believers in the notion that they just need a bigger hammer.

[Psychosplodge]

Surely the optimum price from your argument would have seen a stabilisation of volume, and higher increase in profit.

[eldargal]

Remember GW is making a healthy profit at a time when most retail is not. If they keep this up then as the economy recovers people should be in employment and hopefully being paid more and they will have more disposable income.

[Wolfshade]

Just a gentle nudge that this is rapidly dissolving into a GW pricing discussion, there are plenty of threads on that topic.

[OrksOrksOrks]

The only issue is that Games Workshop continues to operate as if they are the only game in town. They don't accept that there is competition. They don't accept that technology has changed. They don't want to believe that they are NO LONGER making a luxury item. Wargaming has always gone in cycles. Games Workshop broke in when the cycle was at a low. They were producing what amounted to luxury products and were the only reliable source. Once a market was perceived to exist, more people got into it. The technology now allows other people to quickly get to the level of quality it took Games Workshop years to do. These problems aren't going to go away. I've got my popcorn and find it all very entertaining.

*What is beyond all doubt is that Games Workshop has a public relations problem. It is silly to blame that on the nameless faces of the internet. Companies that have a bad image bring it on themselves. Where there is smoke, there is fire. Do I think they can fix it? Sure. Do I think they will fix it? No. They have shown time and time again that they believe that you can force a square peg into a round hole. They are firm believers in the notion that they just need a bigger hammer.

Except no other company has show they're capable of mass producing miniatures to the same scale with a quality anywhere near GWs, they're aware of competition but the competition is currently tiny compared to their market, and isn't capable of competiting on anything like their scale, so they don't need to worry, McDonalds isn't worried about Shake Shack, even though Shake Shack make better burgers, they don't currently have the infastructure in place to take much from McDonalds.

The 3D renders of products on Kickstarter aren't the same as a company making actual models and selling them around the world, PP is their biggest competitor and they're still making mixed plastic and metal kits, which shows how far behind they are in the technology.