Quote:
Sticky Fingersss wrote:
GW doesn't seem to understand economics. If you decrease price, sales tend to increase. If you increase price, sales tend to decrease. At a certain point, you reach an equilibrium, where price meets sales to give the highest possible profit. So, if something isn't selling well, decrease the price to the point where you can get rid of it without losing any money. GW is doing the opposite. I understand that LotR isn't their most popular brand, but the more you increase the price of them, the less you will sell, decreasing profits. If they understood economics, they would sell them MUCH cheaper than this. I don't know the production costs of producing a box of minis, but it can't be any higher than $15-$20, otherwise they wouldn't have sold them (early) last year for only $27. There can't possibly be such a drastic change in costs to call for a price hike up to almost $45.
That is an incredibly simplified economic point of view. GW definetly understands economics more than you do. They are still a huge business and have survived for ages. Any price rise is going to be unpopular bu. That's the way all large companies think.
Of course it's a simplified view, but it's still true. If they understood economics more than me, then they wouldn't increase the prices to ludicrous levels. I understand that taxes are higher in the UK than in the US, but that should mean it's cheaper here snce they make them here in the US too.
There are so many other factors that are included. What you have said is what is located in High School text books. GW are a full running buisiness and their goal is to make money. That is every buisniness's goal. Saying that you understand economics much more than GW is a really large step to take, and unless you have previous run a high corp business or have majored it in uni then I would rather take GW's advice if I were starting a business than yours.
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