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  • Scale distortion

    Editorial

    Companies in your browser window may appear larger than they are

    The internet is a great tool for leveling the playing field and giving small companies quick and easy access to their customers. TGN is an example of this as are the many message boards, websites and Yahoo Groups that exist to help connect gamers with companies willing to supply them with product.

    I would say that in the past four years it has become substantially easier for gamers to find companies and products and it will continue to do so as companies continue to expand their use of the web. There is a downside to this though in that it often gives people a distorted impression of the relative size of the companies in the industry.

    This became all too apparent recently with news that Games Workshop was going to be reducing 10% of their workforce as part of a cost cutting measure. This is estimated to be about 280 people giving GW (world-wide) a size of 3100 - 2800 people. To put this in perspective, Privateer Press, probably one of the top three or four miniature manufacturers in terms of size has about 50-75 employees. To put this even further in perspective a company like Baccus probably only has two full-time employees.

    GW probably has more people doing HR work for them than the combined staffs of Hasslefree, Baccus, Black Scorpion and a hand-full of other independent miniature companies. Which is to be expected. Games Workshop also produces a lot of miniatures, books and material over the course of a year but I think that when we all browse through sites and look at product we tend to forget that these smaller companies are often run by a single person or at most group of two or three.

    Its always quite amazing to compare the amount of production that a small company like Black Scorpion can generate in a year when you realise that there isn’t a huge infrastructure in place to support the designer creating the miniatures. Its often the same person sculpting, doing PR, packing orders and updating their website.

    Most miniature companies have developed to compete in a market where the expectations regarding pricing, production and quality have been created and maintained by a company, GW, that is 100s of times larger than them. The fact that they can and do compete to meet these expectations is commendable but I think that we as miniature gaming consumers need to keep the size of these firms in mind when we make expectation regarding pricing and service. Especially in terms of pricing.

    The wild and wooly world of online merchandising is often defined by the expectation of discounts. This has an immediate impact on local game stores but it also has a carry-over effect on direct sales from smaller, independent manufacturers. A 20% discount on GW products from an online retailer is often a much different proposition than a 20% discount on a sale from a company such as Crusader or Black Scorpion. Just because these companies seem to be as efficient as a much larger entity as GW doesn’t mean that they have the same financial flexibility as Games Workshop or online retailers that sell GW products. I am sure that most of these firms would love to be able to have the same sort of price margins that Games Workshop does but the fact is that they don’t and if they want to continue to invest in coming out with new products for us that means that they need to be taking back as much of their margin as they can to continue to prosper.

    Ultimately, profit is good for these companies and the more of it that we can given back to them the more I think we all benefit from having a healthier industry.

    7 Responses to “Scale distortion”


    gavroche says:

    3 cheers for the small companies doing a great job!


    angelbarracks says:

    I must say that I am very pleased that Zac has acknowledged the efforts the smaller companies go to.
    Angel Barracks is a business that is run when I am not at my full time ‘proper job’
    given the limited time and very limited finances available to me I am so far pleased with its success.
    The website is built and maintained by my very understanding wife (who too has a ‘proper job’)
    The design of the site is done by myself as are the newsletters, the sculpting and the casting of the scenery.
    The researching and writing of the rules and supplements.
    The purchasing and advertising, the packing and distributing.
    The painting for our figure painting service and the ready painted scenery and much more.
    I have found that it takes a lot of hard work and involves a lot of patience and perseverance.

    Why do I do it?
    Certainly not to get rich.

    I do it because I love the hobby.
    I wanted to offer a service where everything that is needed to start wargaming can be bought in one place.
    That is my aim and I hope my efforts will be appreciated.

    Michael


    Stu says:

    The number of independent miniature manufacturers online these days is a god-send for anybody playing games that don’t come from Games Workshop and in particular for the smaller scales like 15mm.

    To be honest I’m usually happy to pay higher prices to support independent manufacturers than to pay overinflated prices to support Games Workshop.


    wyrdlyng says:

    The scale of a miniature company does come into play for me when looking to buy merchandise. I’ll look for the largest discount for products from companies like GW; their products are “mass” produced so they can take it as far as I’m concerned. On the other hand, I’ll gladly pay full price from smaller companies (like Wyrd) in order to support their growth.

    But once a company reaches a certain size and market saturation, I start digging for the discount (PP, I’m looking at you).


    pnweerar says:

    Nice to read an article like this.

    I have 16 staff doing customized miniature painting, not everyone seems to realise that this is different from buying a DVD from Amazon.


    angelbarracks says:

    I don’t think discounts are that relevant.
    It’s the value for money that i look for.

    Smaller companies quite often can have big margins but the unit retail cost may be so low that the margin is not that relevant and as such discounts can be irrelevant.

    For example my unpainted dry stone walls sell at 10p each which is a nice mark up from cost, but as the unit selling price is so cheap i can not afford to offer a discount like the big players, i hope that my value for money is enough to win business.

    I would not pay ‘full price’ from smaller or larger companies even if i liked the product if i thought the it was overpriced in the first place.

    Value for money i say!!

    Michael.


    redstripe says:

    The internet, arguably, provides the purest supply/demand environment. While Marines Workshop has a good deal of influence over the price point of a single 32mm miniature, ultimately the demand for a product is going to dictate its price. If a company were to come out an produce Power-Armored Cosmic Rangers, I’d likely not buy any. My appetite for such is already filled to nausiation by GW.

    However, companies like Wyrd, Corvus Belli, and Black Scorpion provide truly unique product, product I can’t get anywhere else. As long as they provide that kind of intriguing product, product that is very much in short supply, they can continue to demand my dollars.

    These companies exist not only on the quality of their work but also on how inspired it is. These companies have inspiration and passion that has long since faded from their larger kin. That inspiration, that passion, is worth paying for and I will continue to do so, as long as its there.


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