Yeah i saw this as well. Frankly I don't blame them for closing the shop, like he says in the video they make most of their money from the Vault option on their website and the small profits they made from selling GW workshop will end up causing them to make a loss from that particular area of their business.
It is my firm belief that GW aren't trying to drive the sales back to themselves, but into BnM stores. They keep rolling out more and more policies designed to limit webstores, and that reward BnM shops.
I think they recognise a need for highstreet recruitment, and feel that the short term benefits of webstores are outweighed by the long term recruitment problems if they let them run wild.
Right, but are they doing it to help local stores... Or just boast their own online profits? Personally I think it's their own online profits more than anything else because the amount the lack of freedom a local BnM store has in choosing what they stock. Surely if they were trying to support the local stores they would allow them more freedom to sell their product. What do you think John?
I don't think they are. Certainly not in the current economy, and certainly while the current stock holders are alive.
I can stock all of GWs range. The direct stuff is a little bit of a pain, but GW are one of DOZENS of supplyers who do this to me, and frankly, letting me have access in a roundabout way is better than me not having access at all, or waiting months for reprints etc.
Want to know who's worst? Warlord games. 80% of what they make is not available for me to buy in.
On-line sales weren't a factor in the 90's. If the face to face recruitment was the best, the 90's should of been a golden age for US.
This is to do with killing off all on-line competition to GW.
If they wanted to increase the people coming into the hobby via bnm, they would freeze price rises. That may still happen. (yeah right!). Which kids are gonna pay $70 for 5 plastic space marines?
Also, the US has about 1/8th the population density of the UK. Is GW expecting a few masochists to open up shop in every backwater? No, I expect GW will be a city only hobby soon for them.
At the end of the nineties, as the internet first appeared, an american distributor named Potomac Distribution started selling direct to the public. Hasbro ignored the breach of contract due to it bringing in good money, only to suddenly see potomac's cornering of the market cause dozens of stores to close, and then a sharp decline in people playing the games because the stores were running the local tournaments.
I'm not saying GW are going about it the right way (They have a history of tackling things from the wrong end) but I do believe they are trying to help BnM stores by making webstores harder to run.
I agree that a price freeze would be nice from GW, but evidently the games industry think that high prices work fine. PP have some very highly priced models in their range. Spartan are releasing their 28mm at a GW pricepoint, and Wyrd are on a par too. Corvus are arguably more expensive, and so are GCT and countless others.
GWs only price problem comes from needing more models for their games than most others.
Comments
I think they recognise a need for highstreet recruitment, and feel that the short term benefits of webstores are outweighed by the long term recruitment problems if they let them run wild.
I think GW are getting ready to sell. A bit like Wizards of the Coast taking over DnD...
I can stock all of GWs range. The direct stuff is a little bit of a pain, but GW are one of DOZENS of supplyers who do this to me, and frankly, letting me have access in a roundabout way is better than me not having access at all, or waiting months for reprints etc.
Want to know who's worst? Warlord games. 80% of what they make is not available for me to buy in.
Sell direct = bigger margin
Sell through intermediaries = more customers
But which/what balance = most profit?
This is to do with killing off all on-line competition to GW.
If they wanted to increase the people coming into the hobby via bnm, they would freeze price rises. That may still happen. (yeah right!). Which kids are gonna pay $70 for 5 plastic space marines?
Also, the US has about 1/8th the population density of the UK. Is GW expecting a few masochists to open up shop in every backwater? No, I expect GW will be a city only hobby soon for them.
I'm not saying GW are going about it the right way (They have a history of tackling things from the wrong end) but I do believe they are trying to help BnM stores by making webstores harder to run.
I agree that a price freeze would be nice from GW, but evidently the games industry think that high prices work fine. PP have some very highly priced models in their range. Spartan are releasing their 28mm at a GW pricepoint, and Wyrd are on a par too. Corvus are arguably more expensive, and so are GCT and countless others.
GWs only price problem comes from needing more models for their games than most others.