Thursday, April 7, 2011

International Finance 101

Just to give people an idea of how ludicrous the pricing model Games Workshop uses in this part of the world, have a look at the following real-life example.

I decided to purchase the new Tomb Kings kits when they went up on Advance Order. I wanted 2x Warsphinx and 2x Stalkers/Knights.

The cost from UK internet retailer Wayland Games ( including airmail postage was GBP106.50. This included a discount to GWUK’s prices of 21% and postage of GBP4.50.

To order the same from GWNZ via shop or mail order was NZD $412.
The NZ price is equivalent to GBP191.58……so buying from Wayland means I get the models at a discount of 44.4%.

I feel sorry from the NZ Games Workshop shops and other local retailers. It is an enormous gap that in these penny-pinching times can’t be ignored.

Personally if the gap was around 10-15% I would buy locally but as a hard-nosed advocate for market efficiency it is a gap too big to ignore. I appreciate that according to accepted wisdom regarding GW’s market strategy that I am not one of their target market but I suspect in these miserly times for retail that local shops would prefer I dropped the $2,500-3,000 (UK Prices) per annum with them rather than via the internet.

Sorry guys, it’s all about the cash……the rest is just conversation.

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