I would make a new chaos dwarves book and then bring back the halflings with alternative pygmy rules. Cheaper stuff would great too.
Well, last reported I could find was about 54.6 Mln stg, or roughly $105.8 Milllon Dollars. With 31.1 million outstanding shares. That was based on about $3.40 a share (or 165 pence a share). But it can be hard to tell because the pound and dollar are shifting so much and so violently right now.
But to take it privately would probably cost more than that. Their are several institutional shareholders of GW stock (like pension plan /mutual fund type of groups), As you got a hold of more stock, the buyout price would continually shift upwards. to get to the # you'd need to take it back private, you'd probably need about 185+ million, and the ability to finance all of that debt (ie the purchase price would probably not be covered by the assets of the company at the time.)
i'd listen to the costoar and see what they want mabey make more merchendise like t-shirts,and watches bring back SG,sabertooth games and warp artifacts rejuce prices advertise more relesed army that need to be relesedget some good suplutor and widen the range of armys
make everything cheaper
half the cost of army books but only put fluff, hobby and tactics in them
put the rules and points on the boxes
make it so evil armys can take any evil unit good any good unit whilst keeping unit selections but have bonuses for having lots of units from one race
meaning you could have very fun and varied armies only problem is power gamers *grumble*
In an interest to get a better understanding, I pulled up the
2007 annual report. For what it's worth, Tom Kirby acknowledges a lot of the issues raised here, about customer service, and a lack of caring/shirking responsibility onto others. There has also been some sort of management reorganization, which should hopefully translate into improved GW services and products. I want to know WHY they went public... were there excessive capital investments that they needed the funding for? it's a tad unfortunate they went public, but at the same time, it provides the public with some sense of credibility and transparency.
I understand why everyone is saying price cuts (although there was some sort of cost reduction programme that took a nice bite out of profits in 07), but that's not quite the answer. there are high prices for a reason, and currently, GW isn't prospering. First thing I'd do, analyse my cost centres, see what is a dead weight expense sink. Is there outdated equipment that is tying up too many resources, etc.
Sales have been dropping steadily since 2004, and this would indicate a poor marketing presence. and perhaps a general lack of interest (most likely due to the issues you've all stated). But also it's a mature company... it's likely hit a stagnant place in its life cycle and this needs to be reinvigorated somehow - new product, new strategy, etc. Computer games are likely their attempt at updating the product mix. I feel something needs to be changed with how they sell the product. I can't quite put my finger on it, but essentially, I don't see the need to "go buy more" (but again, I'm not a core customer). If there was a way to ensure continued sales, some sort of game growth dynamic, then that should help as well. It's possible they have saturated most of their market.
so to sum up, before I price cut and run the company into bankruptcy, it would be wiser to cost cut, minimize unnecessary costs, streamline the system and overhaul the product mix/promotion. My parents will be thrilled to know I've now put my 4 years of university education to good use.
that review was so boring sales this profect that how can you read all that also what do you mean by it was bad them going puplic
well, it was never intended to be a best selling novel, I assure you. Annual reports aren't exciting, but it's important to read and understand them if you take an interest in a company Godbob.
the question Kera asked is a valid one, but before answering "lower prices!!!!" it's really worthwhile trying to understand WHY the company is where is it... with unhappy customers, high prices, dropping sales, etc. like, if prices have been rising as much as everyone says (and I'd agree they have been increasing) but sales figures are still decreasing, that's NOT good.
as for it being bad they went public (not quite what I said, I just said unfortunate), it's more that they were looking for funding, to raise money, but for what? was it a necessary move? I'm not entirely sure it was, other than they need more money to bolster the dropping sales. it seems like a bandaid solution to something more. that's all. But again, I said in essence it's also good as it provides transparency with regulations, guidelines and procedures to be followed and accounted for before actions are taken. I don't know how it will play out, obviously, but a good friend who works in equity sales was very disappointed in the report and said he wouldn't recommend a purchase of GW stock, in fact he'd sell what he had (if he owned any that is).
if iwas ceo i would bring back space mcquirk what an awesome name!!!
@ Grimmy; I totally hear you and agree. I'd say they are working part in parcel to the whole issue. Definitely saturation and rising prices are affecting sales. people buy less because it costs more. in my last post I just meant that total net sales ($) are STILL decreasing even though they are charging MORE for stuff. which means total unit sales (qty) are REALLY plummeting. but at the same time, often a company will raise prices to compensate for dropping sales, creating a vicious cycle.
@ Willmark, you're right! the sales spiked for 2 years (why? was this the release of the LotR set? I'm not sure, just guessing). I suppose it is a niche market game, so sales shouldn't be outrageous, but holding strong if it integrated well into the market. which, maybe they are? something still needs to be done to boost sales in any case.
@ zorn: if I were on the BOD, I'd hire you solely to bring back that name. lol
Ok, as an old dog, I can make a few comments on all of the mentioned issues.
First, GW went public during the management buyout led by Tom Kirby, Rick Priestly, J. Stollard, and others. It was in a deal as they bought the company from Bryan Ansell. That was in 1982, just before the big "core boxes" started coming out. The basic $$$ was for the debt load they took on, and a series of plastic kits they decided to start developing. That is where the inital funding went.
Second, The sales increase(spike) WAS by adding the LOTR sales to the lines of Warhammer and 40,000. After the movies left theaters, those sales didn't just shirnk, they almost disappeared. However in certain areas they have rebounded. At least they re-upped the license and have been making more things.
Third, most of the management decisions I believe Tom Kirby mentions were based on the complacency that a lot of big companies can go through. Many may not believe this, but in the past GW could raise prices, and the amount of money they sold would go up, but also the amount of UNITS they sold would go up too. I am not making that up, I know that was true. That was a big part of their continued growth on growth from the nineties until 2003. Basically, they were adding more hobbyists, adding more price, and selling more as they gained in popularity. I remember how hard it was to find GW anywhere back in the 80's. Now it is fairly easy to find somewhere somewhat close to you (talking mainly US here). After a while you go through growing pains, either through stagnation, loss of core customers, competition, change of times (ie computer games). They are going through those hard times now, the big question GW management seemed to ignore was not profits, but the changing times and stagnation. And competition may be involved as new games have come on the market, and several people seem to play them. This has happened before and most of the go away after a while (see harlequin, mutant chronicles, others (and rackhams current $$$ problems too)). Privateer Press and Flames of War are also run by a lot of the ex-GW guys, so for the first time, they are facing challenges from well-financed(seemingly) and understanding (they learned HOW GW had done it- not just tried to copy it) competition that has gained threshold market share......
Fourth, the computer games are licensed by GW. Basically Mythic (EA) and THQ pay them a set amount of money (under contract for more in WAR WO or the forthcoming 40k one I am sure under the continued sales). They then can release the games as GW approves them. GW does not own the games, just the world and the IP. They only make a set amount of money, and the new WAR will be released with a limited figure to get people into the mini game.
Fifth, advertising is a drug. ask Coke, Pepsi or McDonalds. They have been trying to lower their advertising budgets for years, and they basically can't. The reason it is a drug is because in order to gain the same return the next year, you'll have to spend x% more. then the next year you'll have to spend x+y% more. And that only maintiains your level of interest, it does not grow it. However, WD is their advertising budget. That is why so many true hobbyists seem to have such big problems with it. It IS designed as a new gamer advertisement, and we all know it. even some of their best articles (ie Tale of Four Gamers) are mainly about new gamers or new army building. And as much as we all want it, there could be big problems having a starter magazine and a more in depth hobby magazine for established gamers. They'd basically end up with two poor wselling magazines as new gamers would get lost in the hardcore, and the established gamers who still read it would stick to the newer format.
GW has to find answers. Luckily they are big enough that they can probably survive through it (and seem to be stabilizing in regions again). They have taken several steps, including cost cutting (which HAD to happen no matter how much you didn't want something to go away). Their cost cutting included the bitz program. You probably don't know the dollars invloved in the process, but their were TONS of metal cast and Thousands of hours paid to employees to process them out and pack them up. They made some money at it, but it was probably a pretty easy area to start cost cutting (though I won't be happy until it is back in its entirety, not as "packs" that I can order.)
And in their position, they can't really reduce prices too far without going south......all they would have to do for price to become less of an issue is to hold prices steady for a while. With the changing economies globally and in the US, they may be forced to do that as long as they can. During bad economies though, hobbies do tend to gain traction. Basically, you can waste money on a movie, or buy a box of GW minis. (they both cost the same (at least here)). However, one lasts for 2 hours, the other you have as long as you want them. (basically forever if you want them).
It will be interesting.