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"Games Workshop Pricing Policy" Unofficial Survey
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Old 15 Jan 2006, 04:20   #1 (permalink)
Shas'O
 
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Default "Games Workshop Pricing Policy" Unofficial Survey

Here are a few questions that investors and shareholders asked GW, and the respective response(s) from Tom Kirby - the Chief Executive and Chairman of Games Workshop.

Sources: Games Workshop Investor Relations // Talk to Tom - Archive - 'Games Workshop Pricing Policy' and 'Tom on Pricing'

Quote:
[size=12pt]Games Workshop Pricing Policy[/size]

Greetings, I am a relatively new investor to the GW hobby. Obviously, it does quite well. I am wondering about the pricing though. I have been to the GW stores, and the pricing seems quite high. Are there plans to raise or lower these prices in the future? I understand that the fan base is the lifeblood of this operation, but this base must not be alienated.

If prices are too high, I fear that many people will become alienated and quit the hobby, and many people will not even join it. Particularly younger children whose parents no doubt fund their Warhammer purchases, considering adult logic i.e.:" All this money for this little piece of metal". Good pricing is necessary for a new fan base.

However, lowering prices too much could very well cause the undesired effects of losing money, despite higher levels of customer happiness. I would not recommend raising the prices much more, the gamers must have faith in Games workshop's commitment to them.

Tell me, what sort of financial overhead does GW have? Are the prices high due to massive overhead costs? Or just to ensure good profits?

S.A. Ratzloff

You are right to say that if prices are too high people will be alienated. The fact that we have been recruiting new Hobbyists over many, many years, that we are seeing excellent growth around the world with good retention of hobbyists is pretty conclusive proof that they are not. Making miniatures is not a simple process and so our R&D costs are high - youíll see plenty of detail on this in our financial report (on this web site). Also, our miniatures are the best in the world and we believe in charging premium prices for our premium products and services.

What we are selling is a hobby Ė not toys and not a pass-time. Committed gamers and collectors and modellers know they get wonderful value for money from Games Workshop products. Far better value, I suggest, than from similar amounts of money spent on meals out, sports events, boozy nights in the pub. Go to the cinema and you can have an hour and a half of fun. Buy Warhammer and you can enjoy it for the rest of your life! Tom
Quote:
Hi Tom,
Itís my understanding that your product went through a series of price hikes in the last few years. Do you think these high prices are partially to blame for your loss in turnover?

John Villalvazo, Santa Ana, California

Iím somewhat worries about the impact of all the price increases of GWís popularity with the public. While pushing prices up may seem like a good way to compensate for falling sales volume, will this not drive customers towards competitors offering similar products at a better price?
Gavin Butstraen, Antwerp, Belgium

I have had two enquiries recently from shareholders concerned about price rises.

Our hobby isnít cheap Ė it never can be. The time and effort poured into it at our end costs serious money. Also, we are a publicly owned, for profits, company. Our owners expect a return on their investment.

I think we can all agree that companies have to increase their prices to make sure profits are protected against constantly rising costs. This is what Games Workshop does. Despite fears (and malicious Internet gossip) customers are not being driven away by high prices. Sales are down because of the decline in sales of The Lord of the Rings Ė after unsustainable sales Ė not because of pricing.

America has seen more price changes than most as we get our prices, terms and conditions better aligned around the world. Sales are patchy in the US due to the difficulties our independent retailers are having. In our own stores sales are good. Price rises have not driven customers away.

Itís worth remembering the psychology of all this. Why do people stop collecting? It is for many reasons Ė each of which may make an individualís desire for our products slip below their willingness to pay for it (at any price). This isnít the price Ė everyone else is still willing to pay Ė itís a loss of desire.

Tom
First of all, I ask that anyone responding to this thread keeps their cool, and doesn't start GW bashing or complaining/whingeing about the prices - as much as we all would like to, that's not what I wish to focus on here (Consider that a warning).

Tom does have a point, with the first answer and most of the second answer.. so what I'll focus on are these two parts with my questions:
Quote:
Despite fears (and malicious Internet gossip) customers are not being driven away by high prices. Sales are down because of the decline in sales of The Lord of the Rings Ė after unsustainable sales Ė not because of pricing.
Quote:
Itís worth remembering the psychology of all this. Why do people stop collecting? It is for many reasons Ė each of which may make an individualís desire for our products slip below their willingness to pay for it (at any price). This isnít the price Ė everyone else is still willing to pay Ė itís a loss of desire.
Now, a set of questions - you can answer whichever ones are relavent (preferably with well thought out posts where appropriate). For your convenience, just quote the post below, remove the quote tags, and answer the questions.. or just copy/paste the whole block into your post and edit where appropriate. If you have any suggestions on questions, feel free to PM me.

Note: This survey is completely unofficial (in regards to GW) and is just to gather information and opinions on players being driven away by prices, from a wide audience of gamers across the world. This is purely out of personal interest - though if there are enough responses, I may send the link to GW..
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Old 15 Jan 2006, 04:21   #2 (permalink)
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Default Re: "Games Workshop Pricing Policy" Survey

General Questions:
- How long have you been playing 40k for (edition/years)?
- How many armies/points do you have in total (approx.)?
- Which region are you from (Europe/UK, The Americas, Asia Pacific)?
- Where do you buy your models from (GW, Independant Stockist or Online/Ebay)?
- Here in Australia, A Fire Warrior Boxed Set (standard troops boxed set price) was $40 when it came out. Four or so years later, and it's priced at $50. A 25% increase over 4 years for the standard troops boxed set. Thoughts?
- Have you seen people (or friends) consider starting playing, but don't specifically because of the prices?
- Have you yourself stopped buying either their models or hobby tools because of the prices?
- "Despite fears (and malicious Internet gossip) customers are not being driven away by high prices." - Agree or Disagree?
- How often do you buy the White Dwarf Monthly Supplement (and which edition if you do - UK/US/OZ/etc)?
- How often do you play (committed player - fight night every week, casual player - once in a while etc)?

New Players (started playing 40k recently/4th edition):
- Would you find the current prices a deterrent to start playing? Or to buy more and expand your army etc?
- How would you describe the process of starting 40k (e.g. time consuming and expensive at first)?
- Are the expensive, although better value boxed sets - e.g. the Battleforces - a feasible starting point for an army?

Experienced Players (been around since 3rd edition):
- How would you respond to yet another price increase?
- Were there to be a price decrease - would you buy more from GW?
- No doubt you would have seen a large jump in prices without a respective increase in quality of update of the models affected (e.g. the average troops box). Do you see this as justified (GW says that it's to keep up with inflation rates)?
- Have you stopped collecting/buying new models? If yes, then what are your main reasons?

Veteren Players (been around since 2nd edition, or even earlier!):
- What are your views on the trend of increasing prices, but also increasing quality of models since the early editions?
- Would you consider the price increases justified, or at least proporitional?
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Old 15 Jan 2006, 04:55   #3 (permalink)
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Default Re: "Games Workshop Pricing Policy" Survey

General Q's:I've been playing 40k for about, oh I don't know, 3-4 years. I have 2 armies, Space Wolves and Tyranids, with the SWs at around 2300 pts and the Tyranids at around 1400. I live in Canada (so probably the Americas), and nowadays I've been purchasing stuff online.

Quote:
"Despite fears (and malicious Internet gossip) customers are not being driven away by high prices."
I disagree with this, since I doubt Games Workshop (in the US) would have banned the selling of their products from RT stores online if this were true. I'm pretty sure that if the prices were lower that they would find a huge increase in interest, since I know many people who would try out 40k if it weren't for the prices. Heck, I'd probably start a 3rd and maybe even a 4th army if it were cheaper (and I'm pretty sure my friends would join in that too). I don't buy WhiteDwarf, mostly because of the huge focus on LotR. I try to play every weekend, but life/homework/girlfriend have priorities over gaming.

Experienced Q's:I'd be pretty disappointed if there was another price increase, and it might even force me to start buying stuff on Ebay. If the prices went the other way, I'd be MUCH more inclined to buy stuff, depending on how much the prices fall. I'm not entirely sure that the prices are justified, but I don't really know enough about the inner workings of GW to support this.
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Old 15 Jan 2006, 04:57   #4 (permalink)
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Default Re: "Games Workshop Pricing Policy" Survey

- How long have you been playing 40k for (edition/years): about 9 years now

- How many armies/points do you have in total (approx.): 9 armies(3 40k 6 fantesy) totaling about 47, 000 points

- Which region are you from: USA east coast
- Where do you buy your models from (GW, Independant Stockist or Online/Ebay): A got a few from friends, a few from abay, most from GW retail(especially since I now work there)

- Here in Australia, A Fire Warrior Boxed Set (standard troops boxed set price) was $40 when it came out. Four or so years later, and it's priced at $50. A 25% increase over 4 years for the standard troops boxed set. Thoughts: Why oh why does it have to be MORE expensive
- Have you seen people (or friends) consider starting playing, but don't specifically because of the prices: yes
- Have you yourself stopped buying either their models or hobby tools because of the prices: I haven't stopped, but I have cut down(Excluding my terminator frenzy)
- "Despite fears (and malicious Internet gossip) customers are not being driven away by high prices." - Agree or Disagree: some are, some aren't
- How often do you buy the White Dwarf Monthly Supplement (and which edition if you do - UK/US/OZ/etc): I don't and never have
- How often do you play (committed player - fight night every week, casual player - once in a while etc): at least weekly, often more


- What are your views on the trend increasing prices, but also increasing quality of models since the early editions: it was justified in the early increase from early editions, but no longer(especially since most models are now plastic which should be cheaper)
- Would you consider the price increases justified, or at least proporitional: no I do not.
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Old 15 Jan 2006, 05:06   #5 (permalink)
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Default Re: "Games Workshop Pricing Policy" Survey

- How long have you been playing 40k for (edition/years)? been considering playing for 2 years, but started playing 2 weeks ago
- How many armies/points do you have in total (approx.)? 1 Tau w/Gue'vesa will have 1500 ponins
- Which region are you from (Europe/UK, The Americas, Asia Pacific)? The Americas
- Where do you buy your models from (GW, Independant Stockist or Online/Ebay)?
Independant Stockist
- Here in Australia, A Fire Warrior Boxed Set (standard troops boxed set price) was $40 when it came out. Four or so years later, and it's priced at $50. A 25% increase over 4 years for the standard troops boxed set. Thoughts?
none, they been 35 dlrs since i've been arround
- Have you seen people (or friends) consider starting playing, but don't specifically because of the prices? Yes, my friends from the school... we wanted to play but they didn't becuse of the prices ( i was the only one i worked after the school at the time)
- Have you yourself stopped buying either their models or hobby tools because of the prices? no.. i don't have a girlfriend or any other moneysink (lol)
- "Despite fears (and malicious Internet gossip) customers are not being driven away by high prices." - Agree or Disagree? Yes, they are beign driven away (at least in my city)
- How often do you buy the White Dwarf Monthly Supplement (and which edition if you do - UK/US/OZ/etc)? I burrow them
- How often do you play (committed player - fight night every week, casual player - once in a while etc)? 3 times a week, with some friends afterwork (scince 2 weeks ago) to practice, and to encourage other players to get in da' hobby

New Players (started playing 40k recently/4th edition):
- Would you find the current prices a deterrent to start playing? Or to buy more and expand your army etc? Kind of, the prices are way different for some races ($35 us for 12 tau troops and $35 us for 20 guardsmen
- How would you describe the process of starting 40k (e.g. time consuming and expensive at first)? Looking at the models (troops,vehicles) finding that they can be used for a table top game, get friends to share the hobby, start playing
- Are the expensive, although better value boxed sets - e.g. the Battleforces - a feasible starting point for an army? YES, you get the things you need for starting an army for 3/4 the price the components sold apart
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Old 15 Jan 2006, 05:11   #6 (permalink)
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Default Re: "Games Workshop Pricing Policy" Survey

General Questions:
- How long have you been playing 40k for? 3rd ed. 5 years
- How many armies/points do you have in total (approx.)? 3 3000 Tau/ 1500 DH/ 2000 SM
- Which region are you from? U.S.A
- Where do you buy your models from? Independent store and eBay
- Here in Australia, A Fire Warrior Boxed Set (standard troops boxed set price) was $40 when it came out. Four or so years later, and it's priced at $50. A 25% increase over 4 years for the standard troops boxed set. Thoughts? They should have kept the prices constant Price hicks should be made only if a hike in quality or amount of "stuff" per box.
- Have you seen people (or friends) consider starting playing, but don't specifically because of the prices? Yes. alot!
- Have you yourself stopped buying either their models or hobby tools because of the prices? No I build other models other than GW stuff
- "Despite fears (and malicious Internet gossip) customers are not being driven away by high prices." - Agree or Disagree? I call Bull.... on that!
- How often do you buy the White Dwarf Monthly Supplement? Never, Read store copy.
- How often do you play? At least once a week

Experienced Players (been around since 3rd edition):
- How would you respond to yet another price increase? eBay any units I need or be content with what I got
- Were there to be a price decrease - would you buy more from GW? I would buy more
- No doubt you would have seen a large jump in prices without a respective increase in quality of update of the models affected (e.g. the average troops box). Do you see this as justified (GW says that it's to keep up with inflation rates)? Again I call total BS! thy want$$$$$ That is what you call captialism.
- Have you stopped collecting/buying new models? If yes, then what are your main reasons? Yes/no To much money. I only buy units I need.
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Old 15 Jan 2006, 05:24   #7 (permalink)
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Default Re: "Games Workshop Pricing Policy" Survey

Thanks for the (varied) responses so far.. Time for my answers

General Questions:
- How long have you been playing 40k for (edition/years)? Around four years - since Tau came out
- How many armies/points do you have in total (approx.)? One - Tau - 1500+ Points
- Which region are you from (Europe/UK, The Americas, Asia Pacific)? Asia Pacific
- Where do you buy your models from (GW, Independant Stockist or Online/Ebay)? GW mostly, aren't any stockists around here.
- Here in Australia, A Fire Warrior Boxed Set (standard troops boxed set price) was $40 when it came out. Four or so years later, and it's priced at $50. A 25% increase over 4 years for the standard troops boxed set. Thoughts? We're paying more for the same thing, expecially 25% more. Not worth justified IMO.
- Have you seen people (or friends) consider starting playing, but don't specifically because of the prices? Many have shown interest but then saw the prices and haven't started playing - as a direct result of the prices.
- Have you yourself stopped buying either their models or hobby tools because of the prices? Partially - I get some brushes etc from other places
- "Despite fears (and malicious Internet gossip) customers are not being driven away by high prices." - Agree or Disagree? Disagree. I don't see how you can miss it :\
- How often do you buy the White Dwarf Monthly Supplement? Most of the time. Oz Edition
- How often do you play? Casual Player, once in a while etc.

New Players (started playing 40k recently/4th edition):
- Would you find the current prices a deterrent to start playing? Or to buy more and expand your army etc? When I started out all those years ago - the prices were more of a restraint - I had to start out small
- How would you describe the process of starting 40k? Time consuming and expensive at first..
- Are the expensive, although better value boxed sets - e.g. the Battleforces - a feasible starting point for an army? Depends on how eager you are to start off (and how much money you have) but I had to start off with a small squad and only got the battleforce later on.

Experienced Players (been around since 3rd edition):
- How would you respond to yet another price increase? Increases reluctance to buy more.. Not that I'd stop, I'd just buy less and further spread out purchases.
- Were there to be a price decrease - would you buy more from GW? Definately.
- No doubt you would have seen a large jump in prices without a respective increase in quality of update of the models affected (e.g. the average troops box). Do you see this as justified (GW says that it's to keep up with inflation rates)? Nup. They're still selling the same product on the shelf. It's nothing new. Some small increases would be justified, but 25%?
- Have you stopped collecting/buying new models? If yes, then what are your main reasons? No..
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Old 15 Jan 2006, 07:47   #8 (permalink)
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Default Re: "Games Workshop Pricing Policy" Survey

General Questions:
- How long have you been playing 40k for (edition/years)? For several months, maybe 2 or 3.
- How many armies/points do you have in total (approx.)? Probably around 500 of 750.
- Which region are you from (Europe/UK, The Americas, Asia Pacific)? West coast of the US.
- Where do you buy your models from (GW, Independant Stockist or Online/Ebay)? Mostly from a Independant stockist beacuse its easier to get to but sometimes a GW store.
- Here in Australia, A Fire Warrior Boxed Set (standard troops boxed set price) was $40 when it came out. Four or so years later, and it's priced at $50. A 25% increase over 4 years for the standard troops boxed set. Thoughts? With gas the price it is, its a wonder its not any higher.
- Have you seen people (or friends) consider starting playing, but don't specifically because of the prices? Yes, plus the lack of time.
- Have you yourself stopped buying either their models or hobby tools because of the prices? How can I stop, I've just started.
- "Despite fears (and malicious Internet gossip) customers are not being driven away by high prices." - Agree
- How often do you buy the White Dwarf Monthly Supplement (and which edition if you do - UK/US/OZ/etc)? No, but I plan to buy the ones when the new tau codex comes out.
- How often do you play (committed player - fight night every week, casual player - once in a while etc)? Almost never, still building a mech tau army.

New Players (started playing 40k recently/4th edition):
- Would you find the current prices a deterrent to start playing? Or to buy more and expand your army etc?
- How would you describe the process of starting 40k (e.g. time consuming and expensive at first)? Extremely fun. Although it IS expensive and more time consuming than my homework. But making the models is half the fun! The other half is getting creamed by gundamfans space marines. (so far)
- Are the expensive, although better value boxed sets - e.g. the Battleforces - a feasible starting point for an army? It is a pretty good place to start an army, but i notice that most other battleforces have a transport or a tank contained within their battleforces but the tau dont, I'd rather get a devilfish or a hammerhead rather than kroot.
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Old 15 Jan 2006, 08:26   #9 (permalink)
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Default Re: "Games Workshop Pricing Policy" Survey


General Questions:
- How long have you been playing 40k for (edition/years)? I've been playing for about 1 1/2 years.
- How many armies/points do you have in total (approx.)? I have an Ultramarines army that isn't ready to play yet.
- Which region are you from (Europe/UK, The Americas, Asia Pacific)? I'm from the western US.
- Where do you buy your models from (GW, Independant Stockist or Online/Ebay)? I buy them from all those places, but I usually don't go to GW since it's so far away.
- Here in Australia, A Fire Warrior Boxed Set (standard troops boxed set price) was $40 when it came out. Four or so years later, and it's priced at $50. A 25% increase over 4 years for the standard troops boxed set. Thoughts? Erm... It's pretty steep, but I guess you just have to take the hit and move on. What're you gonna do about it, right?
- Have you seen people (or friends) consider starting playing, but don't specifically because of the prices? Plenty.
- Have you yourself stopped buying either their models or hobby tools because of the prices? I don't buy their hobby tools, I get other brands for cheap.
- "Despite fears (and malicious Internet gossip) customers are not being driven away by high prices." - Agree.
- How often do you buy the White Dwarf Monthly Supplement (and which edition if you do - UK/US/OZ/etc)? I've bought 1 issue. I'd love to get a subscription, but I probably won't.
- How often do you play (committed player - fight night every week, casual player - once in a while etc)? Still building my first army. I have played games with the few squads I have, though. I split up the squad between me and my friend and we played.

New Players (started playing 40k recently/4th edition):
- Would you find the current prices a deterrent to start playing? Or to buy more and expand your army etc? Well I buy less than I would if the prices are lower.
- How would you describe the process of starting 40k (e.g. time consuming and expensive at first)? You gotta be careful, make sure you get the right stuff. And you gotta plan everything out. Well you don't have to, but it's best that way.
- Are the expensive, although better value boxed sets - e.g. the Battleforces - a feasible starting point for an army? Depends on how well the battleforce is put together and whether I want all the units in it or not.

Haha creaming zxcvbnm1017 in 1 squad vs. 1 squad battles is fun.
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Old 15 Jan 2006, 11:30   #10 (permalink)
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Default Re: "Games Workshop Pricing Policy" Survey

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
General Questions:
- How long have you been playing 40k for (edition/years)?
14 years.

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
- How many armies/points do you have in total (approx.)?
God knows. Across all editions Approx 35,000 pts in 4 armies. (yes I wasted my childhood)

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
- Which region are you from (Europe/UK, The Americas, Asia Pacific)?
Asia Pacific. More specifically Australia.

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
- Where do you buy your models from (GW, Independant Stockist or Online/Ebay)?
I'm more into the hobby now, so I buy them once every blue moon. I get them from where ever is convenient.

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
- Here in Australia, A Fire Warrior Boxed Set (standard troops boxed set price) was $40 when it came out. Four or so years later, and it's priced at $50. A 25% increase over 4 years for the standard troops boxed set. Thoughts?
I understand that producing such high quality miniatures costs a lot. You have to buy the best machinery money can buy to make the dies, then you have to replace the dies regularly to keep the quality of the product up. Not to mention all the other associated costs. So I understand that producing a mini dose cost a lot. As for the price hikes: we had the GST introduced in Australia, and you also have to take into account inflation. These costs add up, just not to 25%. GW are showing more then a little contempt for their customers by those sort of mark ups.

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
- Have you seen people (or friends) consider starting playing, but don't specifically because of the prices?
More then a few.

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
- Have you yourself stopped buying either their models or hobby tools because of the prices?
Not the models, but I've never bought hobby tools from GW because of the prices, and now that I know about Verjello (spelling?) I won't buy the paint from them either.

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
- "Despite fears (and malicious Internet gossip) customers are not being driven away by high prices." - Agree or Disagree?
If he seriously believes that, he's an idiot. Just because sales aren't falling, doesn't mean customers aren't being driven away.

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
- How often do you buy the White Dwarf Monthly Supplement (and which edition if you do - UK/US/OZ/etc)?
Pay $11(AUD) for a 100 or so page ad. No thanks.

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
- How often do you play (committed player - fight night every week, casual player - once in a while etc)?
As stated before, I'm more into the hobby these days, so I haven't played for several years.

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
Veteren Players (been around since 2nd edition, or even earlier!):
- What are your views on the trend of increasing prices, but also increasing quality of models since the early editions?
As I'm more into the hobby, I'm all for it. However as a business decision, I don't think it's a good one. A lot of GW's customers (read most) are students and most of them don't have jobs. Seeing as they would have limited income, they would be better off with cheaper miniatures so they can actually afford them. Perhaps they should spend a lot of time on their character, vehicle, war machine and large models, but keep the troops cheap. That should keep everyone happy.

Quote:
Originally Posted by [ mace
link=topic=16633.msg261384#msg261384 date=1137302466]
- Would you consider the price increases justified, or at least proporitional?
To a point, yes. On the whole, no. See above answer.
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Unofficial Fluff Writing Competition - "40K invades Earth!" Wargamer Fluff/Stories 4 16 Oct 2007 21:20
Argument over "hard-wired" gear on Crisis Suits to a Games Workshop Rep Robogem Tau 20 26 May 2005 18:04