Games Workshop replies to YOU!
May 21, 2011 by beerogre
Many thanks to one of our viewers Brennan Shaw, who pointed me in the direction of this reply to hobbyists from Games Workshop CEO Mark Wells.
Dear Hobbyists,
Thanks for contacting Games Workshop about the change in our trading terms for European accounts. I know this has frustrated you and for that I am truly sorry. As a long standing customer, you deserve to know why we made this decision.
As you know, we introduce people to the Games Workshop hobby of collecting, painting and gaming with Citadel miniatures through our Hobby Centres and local independent trade accounts. Games Workshop Hobby Centres run introductory games and painting sessions, beginner lessons, hobby activities and events. We provide all these services free of charge. We only recover this investment if customers then buy products from us.
Where we don't have a Games Workshop Hobby Centre, we support local independent trade accounts. These businesses provide a convenient place for customers to buy our products close to where they live. We support these businesses with local customer service teams and warehouses to ensure customers have immediate access to our best selling products and new releases. Many customers discover the hobby this way.
In addition we invest millions of pounds every year in our design studio and factory to ensure that each month we release more new products. This makes the Games Workshop Hobby more exciting for existing customers, helping them stay in the hobby longer. We can only afford to do this because of the volume of customers we have recruited and developed through our local Hobby Centres and trade accounts.
It is for this reason that we have changed our European Trade terms. Over recent years, a number of currencies have moved a long way from their historical relative values, and this has opened the door for some traders to try to take advantage of these currency movements and offer deep discounts to overseas hobbyists. This has been the case with European internet traders selling to some of our customers overseas.
While this may seem great in the short term, the simple fact is that European internet traders will not invest any money in growing the hobby in your country. Their model is to minimise their costs and free-ride on the investment of Games Workshop and local independent shops in creating a customer base.
The inevitable consequence if this was allowed to continue is that Games Workshop would not be able to operate Hobby Centres, nor to support local trade accounts. And if this happened in more territories outside Europe, the loss of volume would leave Games Workshop no choice but to scale back our investment in new product development, further eroding our customer base. Not something that we or our customers would want us to do.
That is why we took the decision to take legitimate action to restrict European trade accounts from selling the goods they purchase from Games Workshop outside Europe.
While I understand that you may still be unhappy with our decision, it was taken to ensure we can continue to support the Games Workshop hobby communities around the world through our Games Workshop Hobby Centres and local trade accounts. And to ensure we continue to invest in developing the best possible new product releases every month. I hope therefore that over time you will see the benefits of this decision for you and your hobby.
Yours sincerely,
Mark Wells
Chief Executive
18 May 2011
You can read the full context of the message on the Games Workshop Facebook Page.
If you're a GW fan, you must have a opinion on this... tell us what it is... you know you want to!
I used to live in Australia and NZ and I feel the pain of the guys down under. Surely prices should be relative with UK prices. Yes, they do have to ship the products to the other side of the world, but I feel they should be supporting the hobbyists and not pushing them down. There’s still ebay!
As opposed as I am to this trade embargo and the continued GW price rise they do have a point. It was GW that introduces me to the hobby and for that I will always be in their gratitude. Will I continue to purchase from them? Well that remains to be seen but I’ll never forget where it all began for me.
This only stands up if they are able to solve the price disparity that is suffered in these territories.
So, the questions that should be asked are:
‘How are you going to be supporting the growth of the hobby in these territories now? Will it be via opening of more hobby centres or better support for FLGS through a fairer pricing strategy?’
I could take jhim at his word if it wasnt for the one glaring fault.
You can buy forgeowrld elysian drop squads, direct from forgeworld, cheaper than you can buy Cadians from your local GW shop if you live in Sidney.
And they are not stopping Foregworld exports….
yes but GW and forge world are seperate entities.
i think GW should just close all their australians and new zealand stores and lower their prices down and only sell to local stores. that will drastically reduce their cost in new zealand and australia.
You miss the point, For one, Forgeworld is a wholly owned subsidiary of GW, rather than a seperate entity. The salient point however, is that it doesnt contribute to the brick and mortar shops and associated running costs in Australia and New Zealand, and thus, according to that letter, is damaging to the hobby over there, and is also using the current exchange rate situation, to, as Wells puts it, freeload on the hobby and undercut GWs prices(Its actually cheaper to buy resin Imperial Guard or Empire from forgeworld for an Australian than it is to buy plastic versions from… Read more »
As a theory to put out there is GW stopping their stuff being sold on E-Bay or just the stores official website? Because that could be an outlet for some to explore.
This change and putting the prices up to stupid levels is only going to bite them in the arse.
It’s just going to stop new people from buying stuff as people are going to look at the price that it would cost to start a new army and go bugger that.
They really are going to price themselves out of the market.
they don’t seem to grasp the concept that if something costs £5 to make, if only 100 people will buy it at £20 but 1000 would buy if for £10 then you make more profit by selling it for £10
What? What? Something seems off here…
I’m no buisness person, but i don’t see how GW not selling products in a particular area ( let’s say AUS ) would effect there development abilites. If I am not mistaken GW has made there money when they sell there products at wholesale to the indies? If not the gw is in a lot’s of trouble.
True, GW would eventual pull out of the aus maket if People continued to buy off the internet, BUT don’t give us this Bullturd about it damaging the production ability.
Certainly is an interesting letter, but really doesn’t calm the hobbyists in anyway I think. I checked out the Facebook page for this and the comments have been less than happy – albeit it was nice for them to reply on this at all, rather than staying faceless, but I think the Dick Dastardly picture for the article really does sum it up.
Also its Brennon but nevermind 😉
This is a disgrace. These changes will not help hobbyist’s in the UK at all, We don’t need more stores, we need models that are affordable to the common man, this is not going to happen. GW don’t seem to get that a recession means people have less money to spend.
I feel for those who have been effected by this.
GW have a point but they will loose sales as a result.. seems to me they are prepearing for a period of non growth and need to reduce relative loss. They need to look at ways to support these gamers effect by this in productive ways. How exactly this would be done i do not know. I do not see GW expanding in any are for a few years.
I, for one, believe that Games Workshop is on the completely wrong track. But that’s nothing new, is it? The “Games Workshop Hobby” (ha, what a laughable phrase, wargamming is so much more than Games Workshop) might be centred on brand stores in the UK, but what about places that have no brand stores? I was introduced to this hobby by a friend way back some almost 20 years ago. We never played in the local store (which didn’t have space for a table) so we played in clubs and at home. And, hearing the stories of how customers are… Read more »
I couldn’t agree with you more.
I can’t speak for the rest of BoW team, but I believe (to put it mildly and without the swear words on the tip of my tongue) that this letter MOST CERTAINLY DOES NOT adress any of the real issues, and flimsily tells us what we already knew about an intolerable situation.
For fallacious reasons, GW is, yet again, defecating in their customers boots… And they expect them to grin and bear it.
I am thoroughly disgusted, and I am not even a regular GW customer. I can only imagine how betrayed “long standing customers” feel.
BoW Romain
Looking at it more closely.. there point is less strong than at first glance. the comment by blademirage in relation to GW selling at its whole sale price.. I think the issue is that less and less people are buying direct from GW and they are loosing the mark up that they put on items. How many of you truthfully buy anything direct from GW if you can get from somewhere else for less. ? By putting up there prices they are forcing the sellers that offer say 20% reduction to put there price up to what GW really want… Read more »
I can see from GW’s point how this is reasonable and makes sense, we make stuff and want to be paid for it, the independants are under cutting us so we will cut that loophole off. However GW are not seeing how if an Independant can do it cheaper why cant they…typical corporate mentality syndrome. Time for the board to get reconnected with the fans…sadly again not done.
warworksdk, noggin and in fact most of these comments say it all really
BASTARD! If you WANT us to buy from GW DON’T Make Our Prices here in AUS TWICE as EXPENSIVE! There’s NO reason for it!
i cant say what i want too im too polite and obvisously the better man gw 😛 bunch of ooooooooooooooooooooooooops nearly
So GW keep f*uking us in the arse, how about we turn around and f*ck them back. Lets have an international strike, don’t buy any GW products for a week or 2. Show them we won’t take this bullshit any more.
Its the only way, they really are taking the piss.
I just got invited to a June buycott over on facebook.
All I want from GW is for my local GW store to actually have gaming tables, it’s just paint stations and mini display boards!
A June boycott sounds perfect!
http://www.facebook.com/event.php?eid=121383037944349
There you go then.
Guys I don’t think a month is going to hurt too much. June may have a bit of a blip as it’s the EoFY but in the bigger scheme…..
It will work, but you really need to be prepared to put in. I would say walk away for 6 months minimum. That may be harder than you think. Still it will be the only way they listen.
Frankly, after the finecast fiasco (cheaper material + similar production costs = price rise) I’m not buying anything from GW until the prices drop. Not hold in line with inflation, but actually drop.
So, essentially, I’m never buying from them again. But if they want to treat me like an idiot, I’ll walk away.
Of course, buying novels from Black Library (through Amazon) is the exception that proves the rule…
So the whole thing is that they don’t like that internet retailers ext. are willing to take less of a margin for the same products. I understand that the running of hobby centres ect. is hugely expensive but even still this is a silly arguement. I bet that in the last few weeks the sales have gone down hugely on products all across the range. Warhammer 8th seems to be a disaster never mind the terrible things going on with recent 40k bullshit. Reduce prices, offer things like sales and stop the excuses that amout to the most see through… Read more »
Also (sorry for double post) I am all for a June boycott on all GW products
They could always just lower the store opening hours or even scrap them in place of using gaming events to teach people. Internet does the rest either way. Though that would be hundreds more unemployed…..Yeah.
So basicly , GW has just said go F your self, thats all a bunch of bull crap:P
“While this may seem great in the short term, the simple fact is that European internet traders will not invest any money in growing the hobby in your country. Their model is to minimise their costs and free-ride on the investment of Games Workshop and local independent shops in creating a customer base.” That “simple fact” is a flat out lie. Selling a product to someone in Europe is no different to selling it to someone in Australia in today’s world of global industry. Online stores also do a lot to support the hobby, their valued customers and are often… Read more »
I agree. Correct me if I’m wrong but don’t internet traders help support Beasts of War and sponsor some competitions? Granted it’s a mutual benefit as they increase their sales but to say they “will not invest any money in growing the hobby” doesn’t ring true to me.
All so very true, but do consider this… Games Workshop don’t want you to buy from just any random store that you might walk into. Oh no, they want you to have the full “Games Workshop Experience”. The fact that this “experience” is now a small, badly located, one-man store run by a stressed employee who has to make up his monthly quota or be fired seems to be entirely forgotten or simply ignored… In any case, buying from an on-line store does not give you the “Games Workshop Experience”. Even worse, it might actually expose you to, gasp, other… Read more »
Yes – they have a point in regards to themselves, but not to what the hobby IS – it’s in their best interest for these stores to sell the hobby for them as they do not have enough of their own stores in these countries or the means to justify the inflated costs. The GW store works in the U.K and in Europe because these countries are smaller but in the USA etc it doesn’t seem supportable (free ride my a** – they’re still making profit – if they let their staff have a HUGE discount, they are still making… Read more »
Crivvens and there was me thinking my post was rather long! +1 just for that. Brilliant post making a lot of good points. There is only a single line I would disagree with which was: “though economically sensible for yourselves” While their un-ethical practices are keeping their profits stable they are far from economically sensible as shown by falling sales and those profits only being kept stable by cost cutting and price raising. Now I’m no economics expert or business investor but the flaws are obvious even to me that they have been undermining their own foundations for some time… Read more »
Warspawned……you are dead on!
I love the Warhammer universes, but I cant stand the company. I boycotted GW for a long time when it was clear they had made my Squats no longer viable to almost all games. (Yes I could play them at home and with friends…but is still sucked having an army not allowed into tourneys and such)
Early last year a buddy talked me back into 40k…I love tanks, especially the Leman Russ, and I went back in with gusto. But now….I cant stand their policies. I am done.
@warspawned i read all of it…i may have to read it again. Superb post IMO.
Im interested in a 2nd ed 40k game again…sadly codex creep and a few other bits can make that version suck. So i propose box set only armies.
I may consider some undead mantic…just to hammer the point home to GW. Price for huge army from mantic= £100, from gw for that price id get what?? oh rules and maybe 2 units (ive no idea if thats true but its very troll baiting) 😉
Well do the numbers: 10 tomb guard are £25 , three of those and the army book is £100, roughly. (-2.50, but not for long!).
In contrast Mantic will get you about 100 minis and a command group, with some cavalry in there.
Now, because you’re getting a lot for your money you spend £110 with them and get a chunk more. Games Workshop want your money, but not your custom, it seems.
It’s nice that we get a response from Mr Wells, but also a shame that it comes across as complete and utter bollocks. Here’s why I think why… I first got into GW games when I started high school, back in the early 90’s. This was a time when Space Marine Chaplains rode jetbikes and Squats were, as yet, uneaten by Tyranids. At this time, there were no GW stores here in New Zealand, just a few scattered independent retailers, some of which had tables where we could learn to play. Time went on and the hobby grew. Eventually, GW… Read more »
same sort of thing has happened here in uk….first 2 stores were fine but then roll on a few years and my local store was crushed because when 40k started selling well for him GW moved in and stole that business away from him. Another shop was denied certain items (direct only) and was constantly getting told what he should buy…he got overtaken by a new store. My current shop does GW as a sideline and seems to be ok at mo…wonder how long that will last! Ive suggested options but PP is an issue as he would need huge… Read more »
I agree that it is stupid that the year has stayed the same for far to long. As cool as it is in the 41st melenia, I think that they should advance some of the fluff and maybe bring in a new race. There are to many space marines. But on the topic of the trade restrictions. I might be wrong but doesn’t GW make a flat rate when selling product to vendors. then the vendors make the prices what they have to. It wouldent make sence otherwise. So It shoud not effect GW bottom line at all. Just the… Read more »