“Games Workshop’s Embargo – part 5” or “Hearing straight from the horse’s mouth!”

Hello there.

It appears that Games Workshop has indeed taken notice of the turmoil raging over the internet about its announced embargo to countries outside the E.U.

Mark Wells, chief executive for Games Workshop, publicly answered an email of a concerned hobbyist explaining why GW would enforce such a policy:

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Dear Anthony,

  

Thanks for contacting Games Workshop about the change in our trading terms for European accounts. I know this has frustrated you and for that I am truly sorry. As a long standing customer, you deserve to know why we made this decision.

  

As you know, we introduce people to the Games Workshop hobby of collecting, painting and gaming with Citadel miniatures through our Hobby Centres and local independent trade accounts. Games Workshop Hobby Centres run introductory games and painting sessions, beginner lessons, hobby activities and events. We provide all these services free of charge. We only recover this investment if customers then buy products from us.

  

Where we don’t have a Games Workshop Hobby Centre, we support local independent trade accounts. These businesses provide a convenient place for customers to buy our products close to where they live. We support these businesses with local customer service teams and warehouses to ensure customers have immediate access to our best selling products and new releases. Many customers discover the hobby this way.

  

In addition we invest millions of pounds every year in our design studio and factory to ensure that each month we release more new products. This makes the Games Workshop Hobby more exciting for existing customers, helping them stay in the hobby longer. We can only afford to do this because of the volume of customers we have recruited and developed through our local Hobby Centres and trade accounts.

 

 It is for this reason that we have changed our European Trade terms. Over recent years, a number of currencies have moved a long way from their historical relative values, and this has opened the door for some traders to try to take advantage of these currency movements and offer deep discounts to overseas hobbyists. This has been the case with European internet traders selling to some of our customers overseas.

  

While this may seem great in the short term, the simple fact is that European internet traders will not invest any money in growing the hobby in your country. Their model is to minimise their costs and free-ride on the investment of Games Workshop and local independent shops in creating a customer base.

  

We on the other hand have to keep paying our Australian staff, rents and utilities in Australian dollars. While some customers have suggested we halve our prices, the only way we could do that is if we halve our Australian staff’s salaries, default on our rents and not pay our suppliers until exchange rates move back into alignment. That’s the reality of what a price reduction of this scale means. And we both know that customers who are motivated by price are not going to change their behaviour if it was any less than that.

  

The inevitable consequence if this was allowed to continue is that Games Workshop would not be able to operate Hobby Centres, nor to support local trade accounts. And if this happened in more territories outside Europe, the loss of volume would leave Games Workshop no choice but to scale back our investment in new product development, further eroding our customer base. Not something that we or our customers would want us to do.

  

That is why we took the decision to take legitimate action to restrict European trade accounts from selling the goods they purchase from Games Workshop outside Europe. None of the other alternatives were viable.

  

While I understand that you may still be unhappy with our decision, it was taken to ensure we can continue to support the Games Workshop hobby communities around the world through our Games Workshop Hobby Centres and local trade accounts. And to ensure we continue to invest in developing the best possible new product releases every month. I hope therefore that over time you will see the benefits of this decision for you and your hobby.

 

 Yours sincerely,

  

Mark Wells

 Chief Executive

 18 May 2011

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Well that answer confirms what we had said here the other day: GW is trying to solve a problem by addressing the wrong cause. What should be understood by their chief executives is that people aren’t buying from indie stores in Europe because of the discounts said costumers offer. They do so because prices were they live are OUTRAGEOUS.

I would buy from a Local Gaming Store given two things:

1 – If it existed  here in Brazil and supported the gaming community like GW’s representative implies. I’ll say this once more for the sake of argument: There are no gaming stores carrying GW’s products in Brazil. The ones that did carry such products a while ago only sold them but did absolutely nothing akin to supporting the gaming community. I’ve visited quite a few of them and NEVER came across a single one which had a table you could play the game in or staff to explain the nuances of the hobby like they do in GW stores in the UK. Their sole interest was bleeding us dry of our money a lot like the colonialist model I’m mentioning a lot these days.

2 – Prices were at least similar to the ones of GW UK. People have been pointing that prices here are not fair. Let me add that prices here are OUTRAGEOUSLY UNFAIR. Think “Space Hulk” for instance. It was a limited release which goes on ebay today for about 200 dollars on average. That’s already expensive, and it translates in320 reais (Brazilian currency). I’ll add to the price the 60% import tax charged down here and find a grand total of R$ 512,00 (again five hundred and twelve reais). Well the same box goes for R$ 990,00 (yep… NINE HUNDRED AND NINETY REAIS!!!!) on a LGS which carries GW products. I should add that said exists solely on the internet.

I can hear people saying “AH! But that’s a limited release… prices are bound to be more reasonable in a brick and mortar store down there”. Well there’s another store which has some GW products for sale. It is a brick and mortar store which also sells on the internet. So let’s compare prices of… a dire avenger set. I need more of those for my elder. It costs £ 20,50 at GW’s website, which would translate into R$ 53,00 (fifty three reais), again adding taxes I get a grand total of R$ 84,00 (Eighty four reais). The same box on the afore mentioned LGS costs … R$ 210,00 (two hundred and ten reais!!!). Seriouslly! You can check it here (scroll down on the product list).

And before people say I’m contradicting myself because I’d said there were no LGS carrying GW products I should mention these are leftover stock from GW’s last attempt in establishing a foothold in Brazil through indie stores and a local distributor. Check the link and you’ll see lots of stock missing and there’s no inboud restocks. If you feel inclined to do some more calculations the  exchange rate today for the pound/real is £1,00 pound for R$ 2,60 reais.

Back to GW’s open letter, the more I read it the more it sounds like: “We’re doing it because we want more money … Indie stores are ruining are local businesses thus decreasing the amount of money we’re able to take from you. If you’re compelled to buy from a LGS at double prices we’ll make double the money… simple as that!!”.

It kinda makes sense from a company’s point of view right? GW only wants to protect its consumer base as clearly stated: “… the loss of volume would leave Games Workshop no choice but to scale back our investment in new product development, further eroding our customer base. Not something that we or our customers would want us to do”.

So why not make prices fair to the same consumer bases? The current prices were set back when the british pound was strong (I remember going to the UK with a 5:1 Real:Pound  exchange rate) and should be reviewed now that other currencies are stronger. I believe that in the long term the sales embargo will achieve the exact opposite and people WILL drop out of the hobby. I’m not saying I’ll do so but I’ll definitely buy a lot less. There’s a veritable host of other nice games out there and it’s high time Games Workshop noticed it only came to a position of prominence because of the very same consumers it’s trying to alienate now with embargoes and unreasonable price rises (resin was supposed to make models cheaper and prices went up!!!!).

Exchange rates will not “move back into alignment” as countries like Brazil and Australia are growing in the world scenario. Our money is getting stronger as a consequence of our economical growth and not because of some warp spawned abnormality. It’s Games Workshop who should try and adhere its way of doing business to something we call nowadays “Global Economy” instead of going so low as to have to enforce an effective embargo on sales to the afore mentioned countries. Seriously GET REAL!

I should also add that Wayland and Maelstrom did A LOT more in supporting the hobby in Brazil than Games Workshop, its local distributor or any local trade account as it was Wayland and Maelstrom which made the hobby largely available to people in the first place.

Instead of beating around the bush trying to justify an unreasonable and disrespectful policy, not only towards its costumers but to long time trade partners which are being openly accused of taking advantage of GW’s investments by “free riding” them, Mr. Mark Wells should state clearly that Games Workshop is a business hence it’s trying to maximize profit at the expense of alienating some consumers around the globe.

And don’t blame the amount of money invested on us hobbyists. We’re not kids! (Ok some of us are) GW does that amount of investment because it knows that money will be recouped in sales latter. GW invests money to produce top notch products not for the sake of its costumers but because said products sell, and sell for expensive prices, and well. Please do NOT take me for a fool.

In the end situation remains the same. I have been prohibited from exercising my basic consumer rights. Games Workshop is violating them. I have not been buying from Maelstrom Games or Wayland Games or even GW stores, when I have the opportunity to go abroad, because they offer discounts. If they sold me at full GW products I’d still buy from them because it would still be cheaper and because they’re much more convenient that any LGS in Brazil which would be at least 1.300 Km (one thousand and three hundred kilometers) from where I live (it’s a BIG country).

I have to add that the way Games Workshop has chosen to treat it’s Brazilian costumer is nothing short of regrettable. Time will tell the long term consequences of alienating costumers in a country where all the hobby had to keep going strong were the costumers themselves. Shame on you Games Workshop.

Over and out.

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Salve Leitor.

Acredito que muitos estejam acompanhando os posts sobre o embargo levado a efeito pela GW contra a comunidade brasileira devotada a seus jogos.

Ainda não leu nada sobre isso? Bom nós já tínhamos anunciado por aqui que a GW implantou uma nova política de vendas aplicável às lojas independentes baseadas na Europa efetivamente proibindo-as de vender para países fora da União Européia.

Essa noticia caiu como uma bomba sobre a comunidade brasileira uma vez que a absurda maioria de nós compra seus produtos das lojas independentes vitimadas pela proibição da GW.

“E qual seria o porquê dessa proibição?” Você pode se perguntar. Bem, como especulei com alguns amigos o cenário mais possível era que lojas locais, não só no Brasil mas também na Austrália, Nova Zelândia, Japão, Estados Unidos e no Canadá, pra nomear alguns países, tenham reclamado para a matriz da GW acerca da “injusta” competição com lojas como a Wayland Games e Maesltron Games (que segundo rumores responderiam juntas por um terço ou até mesmo metade das vendas de produtos GW na Europa).

Bom minha especulação foi confirmada hoje por uma carta aberta postada na internet onde Mark Wells, Principal executivo da GW, fala sobre os motivos que levaram ao embargo (traduzida livremente aqui):

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Caro Anthony,

 

Obrigado por contatar a Games Workshop acerca das mudanças em nossos termos comerciais para contas Européias. Eu sei que isso lhe frustrou e sinto muito por isso. Como um consumidor antigo você merece saber por que tomamos essa decisão.

 

Como você sabe, nós introduzimos as pessoas ao hobby da GW de colecionar, jogar e pintar miniaturas Citadel através de nossos Hobby Centres (Centros de Hobby) e revendedores locais. Os Centros de Hobby da GW conduzem jogos e sessões de pintura introdutórios, lições para iniciantes, atividades de hobby e eventos. Nós oferecemos tudo isso de graça e só conseguimos recuperar esse investimento se os consumidores comprarem produtos de nós.

 

Nos locais onde não temos um Centro de Hobby GW, nós oferecemos suporte aos revendedores independentes locais. Essas lojas fornecem um local conveniente para que os consumidores comprem nossos produtos próximo do local onde vivem. Nós oferecemos a essas lojas times de serviço ao consumidor local e depósitos para nos assegurarmos que os consumidores tenham pronto acesso aos nossos produtos mais vendidos e novos lançamentos. Muitos consumidores descobrem o hobby dessa maneira.

 

Além disso, nós investimos milhões de libras a cada ano em nosso estúdio de design e fábrica para nos assegurarmos de lançar mensalmente novos produtos. Isso torna o hobby Games Workshop mais excitante para os consumidores existentes ajudando-os a permanecer mais tempo no hobby. Nós só conseguimos cobrir os custos de fazer isso por causa do volume de consumidores que recrutamos e desenvolvemos através de nossos Centros de Hobby locais e revendedores.

 

É por essa razão que alteramos nossos termos de comércio Europeus. Ao longo dos últimos anos diversas moedas distanciaram-se de seus valores relativos históricos e assim abriu-se uma porta para que alguns revendedores explorassem essas variações cambiais e oferecessem grandes descontos para hobbistas em outros países. Foi esse o caso com revendedores europeus na internet vendendo para alguns de nossos clientes em outros países.

 

Enquanto isso pode parecer ótimo a curto prazo, o simples fato é que os revendedores Europeus na internet não investem nenhum dinheiro no crescimento do hobby em seu país. O modelo de negócio deles consiste em minimizar seus custos e aproveitar-se dos investimentos da GW em lojas locais e em criar uma base de consumidores.

 

Nós por outro lado continuamos a ter de pagar nossos empregados australianos, aluguéis e encargos em dólares australianos. Enquanto alguns clientes sugeriram que diminuíssemos nossos preços pela metade, a única forma com que poderíamos fazer isso seria diminuirmos pela metade os salários de nossos empregados australianos, o mesmo com nossos aluguéis e não pagássemos fornecedores até que o cambio se normalize. Essa é a realidade de reduzir preços nessa escala. E nós dois sabemos que consumidores motivados somente pelos preços não mudariam seu comportamento se as mudanças fossem menores que isso.

 

A consequencia inevitável é que se permitíssemos que isso continuasse GW não seria mais capaz de operar Centros de Hobby ou dar suporte aos revendedores locais. E se isso acontecesse em mais territórios fora da Europa a perda de volume não nos deixaria outra escolha senão diminuir nosso investinemto no desenvolvimento de novos produtos, erodinfo ainda mais nossa base de consumidores. Isso não é algo que nós ou nossos consumidores gostariam que fizéssemos.

 

É por isso que tomamos a decisão de tomar ações legítimas no sentido de restringir os revendedores Europeus de vender os produtos comprados da GW fora da Europa. Nenhuma outra alternativa era viável.

 

Enquanto eu entendo que você possa não estar satisfeito com nossa decisão, ela foi tomada para garantir que nós possamos continuar a oferecer suporte às comunidades do hobby GW em todo o mundo através de nossos Centros de Hobby GW e revendedores locais. E para garantir que continuemos a investir no desenvolvimento dos melhores produtos a serem lançados mensalmente. Espero que com o tempo você verá que os benefícios desta decisão serão para você e seu hobby.

 

Sinceramente,

Mark Wells.

Executivo chefe.

18 de maio de 2011

 

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Eu não sei vocês, mas para mim essa carta é uma tentativa pífia de justificar o óbvio. A Games Workshop é uma empresa e como tal está tentando maximizar seus ganhos obrigando os jogadores a comprarem de suas lojas e revendedores locais. Se um revendedor para de comprar da GW alegando decréscimo nas vendas é claro que ela vai tentar tomar medidas para evitar essa evasão de clientes.

Só que a meu ver essa medida é burra. É burra porquê a maioria de nós não se sentou lamentando e aceitando essa decisão, mas sim ficou chateada com tamanho desrespeito à pessoa mais importante nessa equação que é o consumidor.

Essa carta é uma tentativa rasteira de colocar a culpa nos próprios consumidores alegando, em suma, que a Games Workshop investe milhões em prol de seus consumidores e assim nós deveríamos simplesmente pagar os absurdos preços implementados aqui sem reclamar. Ora nenhum de nós é um imbecil acéfalo. Graças ao bom Deus o hobbista que se dedica aos jogos GW por aqui tem um pouco de erudição e entende que toda essa balela é fruto única e tão somente da vontade de aumentar os lucros da empresa ainda que a revelia de clientes como os brasileiros que com o embargo ficam impedidos de adquirir produtos da companhia.

Enfim… É lamentável a situação em que a Games Workshop nos coloca e a forma como trata o consumidor brasileiro nesse momento. Somente o tempo vai mostrar as conseqüências do embargo para o hobby principalmente neste país onde os maiores defensores e progadadores do hobby são os próprios hobbistas.

Até a próxima.

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