Discounts?

[Chad]

Orcs

The normal solution to such a problem

[Techno]

Though they could always go back into the 'melting pot'.....But I don't think Leon does that.
(I'm pretty sure he only uses 'virgin' white metal to cast up the wee men.)

Cheers - Phil

[Orcs]

Though they could always go back into the 'melting pot'.....But I don't think Leon does that.
(I'm pretty sure he only uses 'virgin' white metal to cast up the wee men.)

Cheers - Phil

I believe the issue with putting them back into the melting pot is twofold

1. Additional wear on the production mould for no benefit. 
2 The wee men may well have release agent on them that will form a dross on the top of the molten lead that will need to be skimmed off wasting metal.

[Techno]

Good points, Mark  .....Though that didn't stop the original owner of Alternative Armies of melting down a load of old Citadel models that he'd accrued, and using those for some of the original run of figures.

(At least, that's what he told me.)

Cheers - Phil 

[petercooman]

I believe the issue with putting them back into the melting pot is twofold

1. Additional wear on the production mould for no benefit.  
2 The wee men may well have release agent on them that will form a dross on the top of the molten lead that will need to be skimmed off wasting metal.

You forgot the wasted cost of the time casting them the first time!

[Orcs]

Good points, Mark  .....Though that didn't stop the original owner of Alternative Armies of melting down a load of old Citadel models that he'd accrued, and using those for some of the original run of figures.

(At least, that's what he told me.)

Cheers - Phil 

I think a lot of manufacturers do this. Sometimes the higher lead content in old figures actually improves the flow and detail.

I sold a lot of old broken  figures from a late friends collection by the kilo on ebay to people casting their own and had no problem selling it. 

[Spartan]

- Do you ever ask for discount on your gaming goodies?

>>>>>>> Yes, if i am considering making significant purchase as a single order or over time.

- Is there a certain value of order that you expect a discount on?  (Over £50, over £100, etc)

>>>>>>> Generally i would say > £200, even if its free postage.

- Should a discount be expected on larger orders?

Yes.

Although not fully aware of the statitics of order values placed with manufacturers, it has been mentioned by a number that the average order value is around £70. Consequently due to economies of scale and ease of dealing with a single customer rather than a number i have the expectation that if i placed an order of say £1000-2000 that i would definatly recieve a discount. 

i think this also is good for the manufacturer. To explain further when i used to regularly purchase 28mm figures one of the deciding factors to go with Front Rank over Perrys was the discount structure.

Discounts also have a tendancy to increase my, and perhaps others, order values. Two years ago i purchased £1k of figures at a 20% discount from a manufacturer, last year £2k at a 25% discount, due to the discount structure this year i am considering an £3k order at a 30% discount.



- How much discount makes it worthwhile?

> Depends on the order level but at a guess 10% or more.

[chrishanley]

I think Leon should be asking why should Pendraken give a discount? Tesco's do not offer discounts for charitable reasons. John Lewis do not put something in the sale because they are feeling generous. There will be a good, sound commercial reasons why a store will have 'special' offers.

I cannot remember the details, but a few years ago Leon wanted to shift some figures which were in the wrong packs (or something, I can't remember) and to save the hassle of re-packaging or whatever it was, there was a buy one get one free type of offer. That makes perfect sense.

So unless there is a good commercial reason, for example to shift unwanted out of date stock, persuade customers to buy a new range, loyalty cards to stop someone from going to 10mm R Us, then a discount only hurts the bottom line. A threshold discount might persuade someone to buy a bit more to qualify for the free postage, but such thing should only be made permanent policy after a trial period to see if it increases sales.

Haggling is what you do with a second-hand car salesman and as I do not see Leon in those terms, the thought of haggling for my 10mm fix is very distasteful. Wargamers are spending their beer money. Those who are providing the figures are doing it for a living, and long may that continue.

Chris

[Orcs]

To explain further when i used to regularly purchase 28mm figures one of the deciding factors to go with Front Rank over Perrys was the discount structure.

Front Rank  is now up for sale and unless a buyer is found will no longer be trading. While I am fairly sure the discount structure was not to blame. The reduced profit margins showing on its accounts by giving the discounts will make it look less interesting to possible purchasers, and if not bought we will loose a fine range of figures

Also of note it has an incredibly high level of stock (some 25,000 figures). Another reasom perhaps for the discounts.

-
Discounts also have a tendancy to increase my, and perhaps others, order values. Two years ago i purchased £1k of figures at a 20% discount from a manufacturer, last year £2k at a 25% discount, due to the discount structure this year i am considering an £3k order at a 30% discount.

Discounts on that level leave very little for the manufacturer, and i would prefer the companies I buy from to still be around in 5,10 or even 15 years when I want another unit or to replace broken figures, than a bit of discount now.

[Lord Kermit of Birkenhead]

Well I just took advantage of the TSS BOGOF .

[Spartan]

The reduced profit margins showing on its accounts by giving the discounts will make it look less interesting to possible purchasers.

IMHO i doubt the use of discounts would necessarily make it less interesting to buyers. In the case i sited the discount was what made me go with FrontRank rather than Perry's. I estimate that I purchased £12k of figures from FrontRank in the next 2 1/4 years. If the discount structure was not in place i  would of gone with the other supplier.

Discounts on that level leave very little for the manufacturer, and i would prefer the companies I buy from to still be around in 5,10 or even 15 years

Without naming the company, i am pretty sure that they will still be around in 5, 10 or 15 years if they wish :-)

I am of the opinion that volume discounts are pretty standard practice across a wide range of businesses.

[Orcs]

Well I just took advantage of the TSS BOGOF .

There is reason for the TTS BOGOFF.  He has an excess of materials that he cannot use.

[Leon]

I think the level of discount is something for each company to decide on and will obviously depend on their overheads and margins.  A non-VAT registered 28mm company casting from home is probably on a 70-80% margin and has a lot more wriggle room to play with.  For a smaller scale company like us with premises, VAT and staff it's a lot more difficult and our margins are less than 15% now.  So any discounting beyond that level and we're losing money on the sale.

[sean66]

I feel the problem with pricing and even discounts is, no one really knows the company's overheads.
I feel a 15-20% profit margin after all other costs is a fair pricing structure.
70-80% Profit Margin is a wrong in my opinion. I also feel that having that type of profit margin and then
Heavily discounting it gives a false impression of your figures values.
Most high street stores when they start into the heavy Discounting circle (outside of normal sales periods)
soon disappear from our streets.
Regards
Sean

[Lord Kermit of Birkenhead]

There is reason for the TTS BOGOFF.  He has an excess of materials that he cannot use.

Still good stuff though and since Deeside defenders split up (non acrimonious, Airbus pulled the venue down) we have very little terrain.