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View Full Version : How has the rise of ebay and other trade websites affected GW policy and pricing?



Craze_b0i
18-10-2012, 00:49
As the title says really, discuss.

lbecks
18-10-2012, 01:02
Obliterated GW's US plans.

Scaryscarymushroom
18-10-2012, 01:58
Obliterated GW's US plans.

What plans? GW has plans? :shifty: :p

Inquisitor Engel
18-10-2012, 01:58
Obliterated GW's US plans.

That's a statement, not a discussion. Please expand on this.

Scaryscarymushroom
18-10-2012, 02:23
That's a statement, not a discussion. Please expand on this.

To be fair to Ibecks, he's not working with much. This thread is kind of vague. I could have said, "What GW policy" or "What do you mean, the 'rise' of ebay?"

I for one thought that ebay rose a long time ago. In the late 1990s.

lbecks
18-10-2012, 02:51
That's a statement, not a discussion. Please expand on this.

I'm examining by commenting via statement. Now that you have responded it is a form of discussion. I am perfectly in line with the thread parameters. However, we are not discussing whether my statement is part of the discussion or not (it is). You may take the opposite position or any amount of agreements with my statement. Or propose statements of your own related to the TS's question.


To be fair to Ibecks, he's not working with much. This thread is kind of vague. I could have said, "What GW policy" or "What do you mean, the 'rise' of ebay?"

I for one thought that ebay rose a long time ago. In the late 1990s.

I lump in rise of ebay with rise of the internet. Which GW did not take seriously when they rolled out their US plans of store flooding which was followed by their US plans of store closings. There were other factors in GW's downturn like the LOTR bubble and their pricing deals in the mid 2000's were potentially undermined by EBay resellers. To recover from that they realized raising prices was the way to go and that's why we don't get pricing deals anymore.

blongbling
18-10-2012, 07:49
The rise of the big Internet stores like Warstore made the US business take a very deliberate action that banned the use of shopping basket functions in relation to selling GW products. In Europe the rise in the big internet retailers/eBay made GW look seriously at the longer term implications of a shrinking retail foot print amongst its indies/toy stores; As a result they introduced the European Trade Terms policy which favours bricks and mortars stores and gives larger benefits if you are not an internet only retailer.

So in answer to your question it fundamentally shaped their independents trading policy for the last 8-10 years or so, it also made them step up and introduce a better website themselves so that they can capture some of the internet only sales.

Did it affect the pricing, nope not a jot...that was always spiralling out of control like a brakeless car anyway

blongbling
18-10-2012, 07:50
I lump in rise of ebay with rise of the internet. Which GW did not take seriously when they rolled out their US plans of store flooding which was followed by their US plans of store closings. There were other factors in GW's downturn like the LOTR bubble and their pricing deals in the mid 2000's were potentially undermined by EBay resellers. To recover from that they realized raising prices was the way to go and that's why we don't get pricing deals anymore.

eBay sales didn't really impact upon GW at all, it was never a topic of discussion at HO and they weren't bothered at all about people reselling their own models. There were one of two noticeable exceptions where there were a couple of trade accounts that were turning over a lot of sales on eBay and they were quickly pulled into line.

tiger g
18-10-2012, 12:15
Does this not belong in ten pricing thread?

Craze_b0i
18-10-2012, 12:21
@blongbling: I would be suprised if the 2nd hand ebay market had zero impact on them whatsoever.

Here is my own experience. Before 1999 (my first dial-up internet connection) the only access I had to the 2nd hand market was 2 friends at school who decided to quit playing warhammer. My nearest LGS was 20 miles away and the 2nd-hand section was just a single shelf! But from 1999 onward I could (in theory) have logged on ebay and purchased any model I wanted, thus avoiding store-prices completely.

Volt
18-10-2012, 16:24
I have an idea (and it could have been confirmed by someone at somepoint) that one of the major reasons why GW went to finecast is because of the ease of stripping paint off of metal figures, thus making them resellable very easy. I can't imagine the horror of trying to strip the paint off of those fragile finecast figures.

BigbyWolf
18-10-2012, 18:01
I'd have to say that I don't see either issue bumping up the prices, GW have always been happy to raise them on their own accord. Even if eBay and online retailers hadn't existed, we'd still be paying a lot of money for our toys.

Scaryscarymushroom
18-10-2012, 18:04
The rise of the big Internet stores like Warstore made the US business take a very deliberate action that banned the use of shopping basket functions in relation to selling GW products.

But why? It doesn't make any sense to ban the use of shopping carts unless the idea is to aggressively control the internet market for your own products. Games Workshop keeps a stranglehold on their prices. The basket function isn't related to the rise of stores, it's done because GW has an online presence themselves and they don't want to compete with their online "rogue traders." They do it to maximize their profits, and it's consistent with the theory that making low-volume, high-price sales is better than high-volume, low price sales.

(for what it's worth, the War Store has a physical store front. Many large online sellers do.)

EDIT: I think the rise of trade websites like ebay and amazon (and online stores), was completely coincidental to GW's pricing and marketing policies, and the more pertinent question would be "How has GW's policy and pricing affected the online market for their products?" Rather than the other way around.

Although finecast seems to be very inconvenient for the second-hand market. Whether or not there was a conspiracy on GW's part to ruin the second-hand market is completely up to speculation.

lbecks
18-10-2012, 22:02
But why? It doesn't make any sense to ban the use of shopping carts unless the idea is to aggressively control the internet market for your own products. Games Workshop keeps a stranglehold on their prices. The basket function isn't related to the rise of stores, it's done because GW has an online presence themselves and they don't want to compete with their online "rogue traders." They do it to maximize their profits, and it's consistent with the theory that making low-volume, high-price sales is better than high-volume, low price sales.

(for what it's worth, the War Store has a physical store front. Many large online sellers do.)

EDIT: I think the rise of trade websites like ebay and amazon (and online stores), was completely coincidental to GW's pricing and marketing policies, and the more pertinent question would be "How has GW's policy and pricing affected the online market for their products?" Rather than the other way around.

Although finecast seems to be very inconvenient for the second-hand market. Whether or not there was a conspiracy on GW's part to ruin the second-hand market is completely up to speculation.

I don't think it had solely to do with internet retailing vs. GW's own internet retailing/mail order. Of course they want to protect their own mail order and if there are customers who are only going to do mail order they want them to buy from GW. But GW really tried to expand aggressively in the US in the early 2000's. If you're GW and thewarstore (and other stores at the time) are selling product at 20%+ off, potentially drawing customers away from the B&M stores you just heavily invested in, you're going to do what you can to slow them down and try to get the return on your B&M investment. Where GW put their money in the US was physical infrastructure. This is a company that had both an upper west side and upper east side manhattan location. Those are not cheap. And if some guy at the far end of long island is undercutting you those stores are money down the drain. The same reason was given for GW blocking products from the UK to Australia. They want their Australian stores to get the business.

Wintermute
18-10-2012, 22:28
Does this not belong in ten pricing thread?

Yes

Thread closed

​Wintermute