Dragon-knight77 Posted July 30 Share Posted July 30 So, like who exactly are they referring to as "return of a much-loved protagonist" it singular so it seems to not referring to the factions it there going to be the return of a character as a Stormcast or are they referring to nu-Queek? 2 Quote Link to comment Share on other sites More sharing options...
Ejecutor Posted July 30 Share Posted July 30 1 hour ago, Chikout said: I don't think it has as much to do with the online store as it does with more people looking for a discount in the face of price rises. I also thought so, but then why the spike on GW physical sales? There's no discount there. 2 Quote Link to comment Share on other sites More sharing options...
Ejecutor Posted July 30 Share Posted July 30 1 hour ago, Asbestress said: Totally forgot the shareholder report is out! I wonder if this means that it was the "most significant" in terms of design and production, or in revenue? GW knows what is their winning horse. Quote Link to comment Share on other sites More sharing options...
Ejecutor Posted July 30 Share Posted July 30 11 minutes ago, BarakUrbaz said: Honestly I think people who think that profit margins are too high are missing on two things: Profit can be reinvested into developing new products, and that non-profitable products don't get supported (and if they are supported, its because profitable product essentially subsidizes them). This is the company that killed one of its core game lines because it didn't sell well enough. For all people are terrified of their models getting squatted, it'll happen a lot more if profit margins are lowered resulting in a lot more stuff becoming unprofitable to make. Plus there's also the chance it will incentivize them to stop taking risks: why make new models for low selling factions when new Space Marines will always sell better no matter what? This is the key, IMO. We sell "well", but we are not 40k. Better than GW get big margins so we are safe until the game sells better on its own. Quote Link to comment Share on other sites More sharing options...
Ejecutor Posted July 30 Share Posted July 30 11 minutes ago, BarakUrbaz said: Honestly I think people who think that profit margins are too high are missing on two things: Profit can be reinvested into developing new products, and that non-profitable products don't get supported (and if they are supported, its because profitable product essentially subsidizes them). This is the company that killed one of its core game lines because it didn't sell well enough. For all people are terrified of their models getting squatted, it'll happen a lot more if profit margins are lowered resulting in a lot more stuff becoming unprofitable to make. Plus there's also the chance it will incentivize them to stop taking risks: why make new models for low selling factions when new Space Marines will always sell better no matter what? This is the key, IMO. We sell "well", but we are not 40k. Better than GW get big margins so we are safe until the game sells better on its own. Quote Link to comment Share on other sites More sharing options...
Ejecutor Posted July 30 Share Posted July 30 6 minutes ago, Dragon-knight77 said: So, like who exactly are they referring to as "return of a much-loved protagonist" it singular so it seems to not referring to the factions it there going to be the return of a character as a Stormcast or are they referring to nu-Queek? Maybe just Skavens? Quote Link to comment Share on other sites More sharing options...
CommissarRotke Posted July 30 Share Posted July 30 1 hour ago, BarakUrbaz said: Honestly I think people who think that profit margins are too high are missing on two things: Profit can be reinvested into developing new products, and that non-profitable products don't get supported (and if they are supported, its because profitable product essentially subsidizes them). This is the company that killed one of its core game lines because it didn't sell well enough. For all people are terrified of their models getting squatted, it'll happen a lot more if profit margins are lowered resulting in a lot more stuff becoming unprofitable to make. Plus there's also the chance it will incentivize them to stop taking risks: why make new models for low selling factions when new Space Marines will always sell better no matter what? We're not missing it, we're stating that doing multiple price increases a year is clearly not "necessary" like we're being told. They exist because GW as a publicly-traded company is required to maintain this absurd margin. Average margins are 30% and companies still use that to reinvest in themselves. Nearing 70% is astronomical amounts of cash. 5 Quote Link to comment Share on other sites More sharing options...
CommissarRotke Posted July 30 Share Posted July 30 1 hour ago, Ejecutor said: I also thought so, but then why the spike on GW physical sales? There's no discount there. Good chance it's because the physical stores have kits that are "currently out of stock" on the web? 1 Quote Link to comment Share on other sites More sharing options...
Chikout Posted July 30 Share Posted July 30 1 hour ago, Ejecutor said: I also thought so, but then why the spike on GW physical sales? There's no discount there. Gw have said numerous times that their physical stores are the number one way they recruit new players. I've been to the Warhammer cafe in Tokyo a few times and there's always at least one member of staff giving the sales pitch to a new customer that just wandered in off the street. They also point out that sales bought online to be shipped to a GW store have increased 50%. These sales are counted as retail sales not online sales. 5 Quote Link to comment Share on other sites More sharing options...
Garrac Posted July 30 Share Posted July 30 1 hour ago, Ejecutor said: Maybe just Skavens? DID SOMEONE JUST SAY NEW SKAVEN???? Quote Link to comment Share on other sites More sharing options...
Ogregut Posted July 30 Share Posted July 30 1 hour ago, Dragon-knight77 said: So, like who exactly are they referring to as "return of a much-loved protagonist" it singular so it seems to not referring to the factions it there going to be the return of a character as a Stormcast or are they referring to nu-Queek? They mean Skaven. I wouldn't read to much into it or try to forsee future releases. Quote Link to comment Share on other sites More sharing options...
Ejecutor Posted July 30 Share Posted July 30 36 minutes ago, Chikout said: Gw have said numerous times that their physical stores are the number one way they recruit new players. I've been to the Warhammer cafe in Tokyo a few times and there's always at least one member of staff giving the sales pitch to a new customer that just wandered in off the street. They also point out that sales bought online to be shipped to a GW store have increased 50%. These sales are counted as retail sales not online sales. IMO that's just them wanting to boost store sales, because you can easily track if the order has been done at home or inside a store. Quote Link to comment Share on other sites More sharing options...
Gareth 🍄 Posted July 30 Share Posted July 30 27 minutes ago, Chikout said: They also point out that sales bought online to be shipped to a GW store have increased 50%. These sales are counted as retail sales not online sales. "orders from home and picked up in a Warhammer store (reported in Online)" "products ordered through our in store terminals (reported in Retail)." 1 Quote Link to comment Share on other sites More sharing options...
madmac Posted July 30 Share Posted July 30 2 hours ago, BarakUrbaz said: Honestly I think people who think that profit margins are too high are missing on two things: Profit can be reinvested into developing new products, and that non-profitable products don't get supported (and if they are supported, its because profitable product essentially subsidizes them). This is the company that killed one of its core game lines because it didn't sell well enough. For all people are terrified of their models getting squatted, it'll happen a lot more if profit margins are lowered resulting in a lot more stuff becoming unprofitable to make. Plus there's also the chance it will incentivize them to stop taking risks: why make new models for low selling factions when new Space Marines will always sell better no matter what? There's a middle ground between low profit margins and 70%, I don't think that's crazy to suggest. 5 Quote Link to comment Share on other sites More sharing options...
Aleser Posted July 30 Share Posted July 30 Didnt Whitefang said death will be main protagonists in new eddition, so I think they think about Nagash here 2 Quote Link to comment Share on other sites More sharing options...
Ejecutor Posted July 30 Share Posted July 30 9 minutes ago, Aleser said: Didnt Whitefang said death will be main protagonists in new eddition, so I think they think about Nagash here Or Morrda, as it is heavily tied with Ruination 5 Quote Link to comment Share on other sites More sharing options...
Baron I_oyd Posted July 30 Share Posted July 30 16 minutes ago, Aleser said: Didnt Whitefang said death will be main protagonists in new eddition, so I think they think about Nagash here jes I wonder why 5 4 Quote Link to comment Share on other sites More sharing options...
cyrus Posted July 30 Share Posted July 30 58 minutes ago, Aleser said: Didnt Whitefang said death will be main protagonists in new eddition, so I think they think about Nagash here Old rumours says Nagash will be back and he will take his revenge over Skaven 💀 🐀 1 1 Quote Link to comment Share on other sites More sharing options...
Aramis Posted July 30 Share Posted July 30 Does the 70% profit just account for the design, manufacture and distribution of minis, and perhaps not account for the game / lore / art development behind that? Or is it in relation to all GW operational spending? Quote Link to comment Share on other sites More sharing options...
Ejecutor Posted July 30 Share Posted July 30 2 minutes ago, Aramis said: Does the 70% profit just account for the design, manufacture and distribution of minis, and perhaps not account for the game / lore / art development behind that? Or is it in relation to all GW operational spending? All the spending. 1 Quote Link to comment Share on other sites More sharing options...
Hollow Posted July 30 Share Posted July 30 4 hours ago, CommissarRotke said: We're not missing it, we're stating that doing multiple price increases a year is clearly not "necessary" like we're being told. They exist because GW as a publicly-traded company is required to maintain this absurd margin. Do you not see the contradiction in those two sentences? They are necessary to maintain their current margins. GW is a PLC that has a legal responsibility to its shareholders. 4 hours ago, CommissarRotke said: Average margins are 30% and companies still use that to reinvest in themselves. Huh? Sorry, this makes no sense (I'd recommend seeking financial advice if you are ever looking to become an investor in anything). Average margin rates are based on the sector in which a company operates. Engineering and Construction is less than 15%, Financial services are around 85%, Education 40% etc. A "good" PM can be anywhere from 7.5% to 95%+ and depends entirely on the market in which the company operates. In the luxury goods market (Which GW is in) LVMH (The largest and most valuable luxury goods company in the world) operates at a profit margin of... you guessed it. 70%!! If GW had a 30% Profit Margin it would be doing terribly (relative to the market it is in.) and shareholders (myself included) would not be happy. 3 Quote Link to comment Share on other sites More sharing options...
Kronos Posted July 30 Share Posted July 30 10 hours ago, Ejecutor said: Soon it is going to be the second anniversary of this little fella: Wouldn't surprise me if we end up having him as some sort of commemorative release or even as part of W+. 7 Quote Link to comment Share on other sites More sharing options...
Ejecutor Posted July 30 Share Posted July 30 47 minutes ago, Hollow said: Do you not see the contradiction in those two sentences? They are necessary to maintain their current margins. GW is a PLC that has a legal responsibility to its shareholders. Huh? Sorry, this makes no sense (I'd recommend seeking financial advice if you are ever looking to become an investor in anything). Average margin rates are based on the sector in which a company operates. Engineering and Construction is less than 15%, Financial services are around 85%, Education 40% etc. A "good" PM can be anywhere from 7.5% to 95%+ and depends entirely on the market in which the company operates. In the luxury goods market (Which GW is in) LVMH (The largest and most valuable luxury goods company in the world) operates at a profit margin of... you guessed it. 70%!! If GW had a 30% Profit Margin it would be doing terribly (relative to the market it is in.) and shareholders (myself included) would not be happy. Purely out of curiosity. Since when do we think GW gave the jump into the luxury sector? Because it is obvious to me that they didn't start as such. There was a big event or it is just that the prices went too high that we assume it is part of that sector? 4 Quote Link to comment Share on other sites More sharing options...
Vasshpit Posted July 31 Share Posted July 31 Geedubs made a bunch of money, cool. 👍 Geedubs products are still over priced, cool. 👍 Still nothing but rats and stormies on the horizon, cool. 👍 These 3 yr cycles really are like two and a half now if even that. For as profitable as they are you'd think products would rarely be out of stock and all existing lines should set the industry bar. I'm not trying to complain here as I'm a fan for my part but some things just don't add up. 2 Quote Link to comment Share on other sites More sharing options...
Hollow Posted July 31 Share Posted July 31 (edited) 1 hour ago, Ejecutor said: Purely out of curiosity. Since when do we think GW gave the jump into the luxury sector? Because it is obvious to me that they didn't start as such It's an interesting topic hotly debated in investor circles because the reality is that "luxury" is a subjective term. "One man's treasure is another man's trash" I would ask you... "What makes it obvious to you that they didn't start as such?" This is a quote from a decent Vox article detailing the surge in "luxury" good sales and why that particular market is booming - "Analysts have a nebulous definition of what constitutes a luxury good, but it’s usually an object that not only has a sky-high price but also promises quality craftsmanship and an air of exclusivity. It shouldn’t be something everyone has." I would argue that Warhammer has always been a "high-end" product, but there was a significant shift beginning in 2015 when Kevin D. Rountree became CEO. A man with incredible financial literacy (and previous CFO) who understands the numbers but also has a firm grasp of marketing, exclusivity and consumer practices. It's also the case that regardless of a vocal online minority of (usually established long-term hobby veterans) GW operates at the bottom end of pricing structures for luxury and collectable goods. Anecdotally - I was just in London for a few days and went to Selfridges with my nieces who were desperate to get their hands on an exclusive range of store-specific Jellycat-Fish and chip plushy toys. The pop-up shop is open for a limited time and the 15 minutes time slots are booked out every day for the next 5 weeks. The queue was 6+hours long and they stopped taking people at 11.50 after opening at 11:30. For the full set of 7 little toys with pins, and assorted paperwork costs over £250. (some sets are now on ebay for £400-£500) This is for 7 hand-sized cuddly toys for kids ages 3-12! Desire often creates a potent feeling of need, one that can be hard to reason away precisely because it isn’t rational. It’s infatuation, limerence. “They’re in the business of selling dreams, You buy a piece of a dream.” Edited July 31 by Hollow 4 1 Quote Link to comment Share on other sites More sharing options...
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