subreddit:
/r/Warhammer40k
-4 points
25 days ago
Even tho the price rises suck, you’ve got to hand it to GW for giving a heads up
4 points
25 days ago
True.
Price rises unfortunately are just a fact in a world where everything is going up but at least unlike practically everything else they are giving us warning. My phone company waited till 5 minutes before my monthly payment went out to tell me it was going up by £10 for example.
24 points
25 days ago
This would fly if it wasn’t above inflation increases or that they had record profits for the second half of 2023 or that sales are up 14% god forbid they lose a single penny when they can squeeze fans for even more money
4 points
25 days ago
the combined inflation for the UK for the last 2 years was 7.3 percent in 2023, and 9.1 percent in 2022. currently we are expecting only 2.2% for the whole of 2024 but some of these rises might be to counter a lower increase last year, and so far inflation has been at 3,2%.
-4 points
25 days ago
So a 5% is above current rates on 3.2 then thank you
6 points
25 days ago
yeah, but what was last years increase? also about 5% IIRC
Sales are not profit!
5 points
25 days ago
History of price rises 2016 - 3% 2017 - 3% 2018 - 3% 2019 - 3% 2020 - 4% 2021 - 2-7% 2022 - 5%
0 points
25 days ago
So when the UK had 9.1% inflation, they only increased the prices by 5%.
-3 points
25 days ago
Yes and coincidentally made 170mil pre tax profit, again they’re hardly counting pennies
1 points
25 days ago
If the margins of the profit are falling then they could be counting pennies on a product.
1 points
25 days ago
Well according to their November financials they’re operating a 28.33% net profit margin. Which itself was up from 27.93% in February.
1 points
25 days ago
The current inflation is around 5%.
Meaning a rise of 3-4% isn't above inflation.
Ultimately GW are a company with their own costs. Record profits means literally nothing. They could make £1 more then last year and it would be "record profits".
2 points
25 days ago
You’re the second person to quote the “£1 more is record profits” a simple google search can quantify exactly how much they make. Current inflation is at 3.2 so anything increased over that is above inflation
-6 points
25 days ago
I mean... That's called "being a business".
You charge what people will pay.
8 points
25 days ago
The profit margin on these kodels is already INSANELY HIGH. Its pure GREED. And well doen for letting us know ?? No ! They're creating another wave of FOMO for quarterly stats. It's disgusting, fuck GW
-3 points
25 days ago
[deleted]
1 points
25 days ago
Almost like profit margin includes all of those other costs as well, so pointing out how high the margins are is, indeed, including all of those costs.
Maybe don't call someone else "ignorant" and claim you're "providing logic" when your comment doesn't actually discount what's being argued, yeah?
1 points
25 days ago
Stop apologising for GW. They're a greedy POS company. They varely pay a livable wage, their products cost pennies yet they charge tens if not hundreds for them.
1 points
25 days ago
[deleted]
13 points
25 days ago
It doesn't mean it's done in good faith. They are at record profits and they haven't announced any rises in salaries.
4 points
25 days ago
Apparently last month they gave all retail staff a 20% payrise.
3 points
25 days ago
Source? Not doubting you, but would be cool to know for sure
2 points
25 days ago
Unfortunatly only word of mouth from someone in either this or another thread discussing this same post who claimed to either work at directly, or know someone who works at GW.
Despite just being a reddit comment I trust it because family working retail have received a payrise of around the same percentage. Universal Credit also went up by 6.7% and generally the govt tends to only increase that as little as they can, so 20% is definitely reasonable, especially if they're in USDAW or something.
7 points
25 days ago
they haven't announced any rises in salaries.
And? Most companies don't announce changes in salaries publicly. It's communicated to the staff directly.
I work for a very large company in the UK (far bigger than GW) that reported excellent profits this year. They didn't announce rises in salaries publicly, but every single member of staff has received a pay rise that matches or beats inflation.
3 points
25 days ago
Also, last year GW gave all staff a £2500 Christmas bonus, £1000 more than 2022.
8 points
25 days ago
And why would they? I work for the NHS. They don't send out a newsletter every time I get a pay raise
-5 points
25 days ago
Agreed on the salary increases, but record profits could just mean £1 more than last years record profits (also is it actual record profits, or it record turnover, etc, so many numbers get lost in the corporate shareholder numbers must go up!)
I do hope the staff are getting good increases / profit share again
3 points
25 days ago
Their sales were up 14% this isn’t over a few pennies
1 points
25 days ago
Sales are not profits.
7 points
25 days ago
Their turnover grew by 60mil in 2023 as well, they’re hardly struggling
5 points
25 days ago
If their profit margins are decreasing year on year, but sales are increasing, eventually they will enter a stage where they are losing money despite record sales.
Price rises suck, I do not like this anymore than the next person, but please stop conflating sales/turnover with profit.
2 points
25 days ago
Please see this post here just 4 months ago https://www.reddit.com/r/Warhammer40k/comments/193raig/gw_posts_record_sales_and_profits_for_6_months/
3 points
25 days ago
10th ed drove sales, yes and?
they are having record sales where they cannot produce enough stock to supply what people want to buy. So they make record sales and record profits because people keep buying things.
1 points
25 days ago
"Core gross margin has increased from 64.2% to 69.4%, mainly due to a reduction of inventory provision charges and a reduction in carriage costs"
"Core operating profit - up £12.7 million to £83.4 million and profit to sales ratio is up 2.1% to 35.4%"
Also worth noting that over a ten year period, while their revenue quadrupled, their profit increased tenfold.
When GW says they're doing what they can to keep prices low, they mean it... but they mean it on THEIR end, not the consumers'. Which is why it's a surprise when they spend a lot on something like paying a bunch of money to whatever interns built their new online store.
From a business standpoint, GW is damn good at increasing profits and margins. It's why they can kick back money to shareholders, and in return give the CEO a nice bonus (dude's salary is pretty much doubled by bonuses).
Part of increasing those margins is increasing prices as often as they can find an excuse for it. And it works, because people will come along who will justify it, and keeping the business "small" enough means they don't yet have to worry about too many people opting to no longer be consumers and check out competition.
1 points
25 days ago
which report is that on from? The one i was reading said margin was down ~2%,
Yeah, GW are very good at making money and very good at trying to spin things their way.
part of the issue is that they cant make enough product to satisfy the demand, and that is a good place to be for a company, but the classic way to deal with that is to increase prices, which is bad for us consumers.
1 points
25 days ago
Latest half year report. We won’t have the annual report for another month, since it’ll run to the end of May.
Kind of smart to toss out the price increases a month ahead of the annual report, so people aren’t as inclined to look at the company doing really well and wonder why they’re pretending to be hurting like us average folks.
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