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Games Workshop - Changes to European Trading Terms
#1
You may be aware of recent changes that GW have made to their trading terms, prohibiting European resellers from selling GW products outside of the EU. This has caused quite a furore on their Facebook page, and CEO Mark Wells has now issued a formal response.

From http://www.facebook.com/home.php?#!/note...6923881812

Quote:Our CEO Mark Wells has written a letter in response to people who have contacted him to express their concerns over our decision to restrict European trade accounts from selling outside the EU. We asked him nicely if we could also post it here for all of you who have been letting us know how you feel on Facebook and so here you have his personal reply.

Sincerely,

The Web Team



Dear Hobbyists,

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.

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.

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

Figures painted in 2016: 4 Blush
"What this game needs is a panda with a chaingun."
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#2
Interesting statement from Wayland Games posted on their Facebook page today. Sounds like they've found a workaround for the time being:

Quote:Hi Guys,

Just a quick note. Firstly we'd like to thank you again for bearing with us during this order spike. As you've seen from some of the photographs we've posted things have been very busy and even a business with our footprint and infrastructure didn't expect for a moment the unprecedented, colossal demand during the last week of May. So we'd like to thank those of you who are waiting for orders to be shipped, once more, for bearing with us whilst we work through the backlog.

In respect of the ROW Category, as every possible resource has been engaged in the processing of orders added to the fact that the means by which we are going to achieve this is exceptionally complicated and requires infrastructure to be established we must apologise for the delays in populating the category. We have a number of issues still to solve which are now in their final stages but we felt it only fair to release a few details of what will be contained within the ROW category and what it will mean to you the ROW consumer. Some of the issues are procedural, some technical and the rest physical.

I will ramble some more then move to a Q and A format as it is better able to answer many of the questions that have been asked over the last few weeks.

We at Wayland would have had to react to the trade terms changes, we as a business would have hoped that a dominant supplier such as GW would have had a grasp of the consequences such a double whammy of terms changes and price rises would have on their business partners of any size. The impact of these changes and especially the surge of orders over the last week of May was beyond our control. We believe that short of closing the store there was nought we could do to reduce the orders we received. In the day to day operations under normal activity we are able to control order volumes relatively easily. In this instance we have had no control at all. All this has occured as we are hard at work readying our new Warehouse and Website launch. So again we would like to apologise to those of you waiting far longer than normal for your orders. As you can tell by the number of times we have posted about it, it is of serious concern to us.

Right on with the show. From here on in ROW will be used to represent "Rest of World", our customers outside of the EU, and EEA (European Economic Area).

Q. What will I be able to order.

A. You will be able to order pretty much any product that you can now. Stock allowing.


Q. Will I be able to order new releases?

A. Yes, though shipping might occur a day or two after the official release date.


Q. Will I have to use some third party shipping/broking service?

A. No, your order will be handled completely by Wayland, and we will be fully responsible for getting your order to you as we are now. There is no need for mail forwarding services to be used.


Q. How are you achieving this?

A. Complicated, this is also commercially sensitive. However in the first instance, we will utilise stock that we had on hand prior to the "conditions of sale" changes. We moved the stock when the announcements were made as we had the "plan" quite soon after we were notified. This stock is finite. How we replenish is sensitive, but it is coming.


Q. What will the pricing be?

A. Until we run out of the stock we have on hand, the pricing will be identical as now. Once the replensihment stock has arrived the prices will be slightly higher as there are additional costs involved. But we will continue to offer at least UK RRP with a 10% discount.


Q. When will the categories be active.

A. We had hoped that would be populated right away, however the current backlog and what is now a cramped 5000Sqft warehouse mean that we cannot populate the categories (stock check the pre embargo stock) until the backlog is dealt with. It would be innapropriate for us to spend resources doing this until all our customers patiently waiting for their orders have been served. We anticipate 2 weeks, though we will do our very best to reduce this time.


Q. Will we still be able to order Forgeworld and other "Direct Only" products?

A. Yes, we disabled many direct only items over the change weekend but as we become sure of supply they will be re-introduced.


Q. Will postage be free on the ROW items.

A. No, the costs are higher for stock and we operate on thin margins already. However we will continue to offer subsidised ROW shipping with the VAT as we do now. Though we will soon be launching another site that might be of interest.


Q. Will your delivery times be extended?

A. We anticipate that they will be identical for ROW items as now, however there are some points later which expand on this.


Q. Does your ROW of solution breach GW's trade terms and conditions of sale?

A. Not in anyway whatsoever. They follow both the letter and spirit of both.


Q. Is your ROW product genuine GW product.

A. Yes, Wayland will never sell second hand or counterfeit goods.


Q. How long until replenishment stock arrives?

A. We anticipate 6 weeks, however as pricing is complicated, as is how we must segregate the ROW stock from our normal stock, this is being delivered to our new Warehouse. And the pricing difference means that we cannot launch the replenished service until our new website is live as it will ask you for shipping location when to access the store and show you the correct products automatically.


Q. Why is that?

A. We are wary of the overheads required to inform customers that they have added incorrect products to their baskets. No matter how well we label the items, most people will not notice.


Q. Why is it taking so long?

A. We had almost no notice at our busiest time ever to adapt to the term changes. The solution requires significant space to operate in properly and without putting our existing business at risk. We also have an obligation to ensure all that we are doing is legal and beyond challenge. This all takes time.


Q. You guys rock, why be so nice to us when its so difficult?

A. Please remember that Wayland is a business and we want the sales, however we are what we are by serving our customers and we wont forget how we got here. Ok no one asked that question but we thought it worth mentioning.

This list will be updated if more questions are asked.

So, there we have it. A broad stock offering, at substantially discounted cost with our usual great service. It is coming, we shall provide it for you and we hope you're interested. If you are we'd simply ask that you publicise this wherever you feel appropriate and we look forward to serving the rest of the world very soon.

Keep on wargaming!

Richard
Wayland Games Limited


Figures painted in 2016: 4 Blush
"What this game needs is a panda with a chaingun."
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#3
Right up until the point where GW decide not to trade with them at all. Could backfire on Wayland, but if they can pull it off as they predict, their owners are going to make a fortune.
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