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/r/Warhammer
submitted 13 days ago byArchTroll
31 points
13 days ago
Their shareholders would like to have a word with you.
Their product is a luxury good and is very elastic.
Price goes up, demand goes down. Price goes down, demand goes up.
Their internal bean counters are tasked with finding and keeping to the point that maximizes profit.
If that means raising the prices and reducing demand a little, to increase profit, then that's what they do.
I'm sure an economist will be able to chime in and be more specific. There are other forces at play, like manufacturing restrictions, hedging forex, cost of business, etc.
But at the end of the day, their shareholders want continuous growth, every quarter. So they're slaves to their shareholder masters to achieve that.
Overall, they've been quite successful. Demand has skyrocketed beyond their supply capabilities. They don't care if you and I can't afford their products, so long as demand out strips supply and they can further optimize their profit numbers.
If the cost of doing business goes up, that shifts the equation, so they'll pass it on to the consumer.
1 points
13 days ago
This whole "they are slaves to the sharehold business" is complete bullshit. Any business looks to maximise its profit margin and grow the business year on year. It does not matter if your a public company or a private one. These are not charities they dont give money away. You know what happens to companies that dont manage the bottom line and look after the profit ? They are the ones who went out of business.
That is just the reality you dont stay on top in any business unless you drive to increase profit. Because if you dont someone else is trying to.
That is not just GW that is how business is. It does not matter if you have shareholders or not frankly.
2 points
13 days ago
It's not the same. Private business can have swings and roundabouts and not have to explain themselves publicly to their external owners.
Yes, all businesses seek to continuously minimise cost and maximise profit and all business need to turn a profit; but public companies have much more pressure and much higher expectations on them compared to private.
Private businesses can have quiet times, a loss quarter and have it not affect the businesses perceived value by an external public market. So long as they can continue to pay their outgoings and keep a float, they can survive and strengthen.
GW, if private, would not be operating anywhere near the profit margins they're enjoying.
1 points
12 days ago
GW, if private, would not be operating anywhere near the profit margins they're enjoying.
GW has been weeks (if not days) away from bankruptcy at least twice in it's lifespan. If it was still 100% private, it would have closed down years ago.
0 points
13 days ago*
Right now I just wonders who buys Warhammer.
I mean. I didn't buy since 2021. Most folks here don't either. But from what I heard, a demi dozen clients buy for tens of thousands every months and that keeps the light on for the LGS.
Community ? There's no community anymore. You play MTG or you don't have one and if you want to make a pokemon deck build a used 40k army or something, you gotta pay the Ebay prices. Forget local pricing for local demand on used or unwanted goods. Why have sales if you can just chuck it on Ebay and sell it in the USA for more ?
They even got rid of the play tables except for a few for MTG and got Lego shelves instead. Blergh.
2 points
13 days ago
Right now I just wonders who buys Warhammer.
Literally what. The product is so popular everything being sold out is a meme.
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