Author Topic: Costings  (Read 12226 times)

Offline libertee

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Costings
« on: March 23, 2011, 10:25:02 AM »
I know Andy has remarked how the cost of metal has gone up and how he needs to alter his pricings so i thought i would look into ours as it has been a long time since i actually costed metal figures.

Two main differences though, Andy does all of his casting in-house and we do ours through contractors. Roughly they balance themselves out but ours will always come in slightly higher simply because we get charged for the actual labour of the casting on top of the materials whereas Andy uses Craig.

Our caster currently charges us 25 plus Vat per hour ...which with the current VAT rate works out to 30 per hour.  The metal is on top of that.

I took 6 bills, 3 from 6 years ago and 3 from recently.

We use two casters for metal, Griffin Moulds and Anthony Epworth.  As we hadnt used Griffin 6 years ago i only priced based on Ep's bills.  Griffin bills are slightly higher due to how they price their work, but this isnt a complaint as you get what you pay for.


Metal costs (excluding VAT):

August 2004 = 4.05 kg
August 2010 = 13.63 per kg
February 2011= 16.96 per kg
March 2011= 18.85 per kg.

Caster rates (excluding VAT):
August 2004 = 16.00 per hour
March 2011 = 25.00 per hour

Shipping rates (excluding VAT):
August 2004 = 8
March 2011 = 16

You can see how the prices rise but what does it actually mean.?  What i have done is taken the total cost for each bill and divided it by the amount of kg of metal we actually get to get an actual cost per metal weight that it costs us to buy in stock.

1::  In August 2004, the price per kg was 4.05 (excluding VAT) but once shipping, labour, vat had been added on and divide by the number of kg's we got an actual price per kg of 15.52

2::  In March 2011, the price per kg is currently 18.85 (exc VAT), but once shipping, labout, vat had been added on and divided by the number of kg's we got an actual price per kg of 41.54


Hasslefree prices have for the part not risen since 2004/2005, even though the actual cost of production just to get the figures in has tripled.  Throw on top of this the packaging costs which have doubled, utilities which have tripled, and the fact we have to pay staff wages which involve extra costs such as NI, Paid Annual Leave etc, insurance costs, rent, petrol...and it goes on.  The more i went through old bills the more stressed and scared i got.

Gradually as we have added new ranges we have slowly increased prices in line with our extra costs but never in line with actual costs.  this means that over the last couple of years with the other issues we have had affecting production our bottom line has dropped considerably to the point where on paper we arent viable.  So prices have to go up and some of them may seem steep but if you think they havent moved for 6 years then i hope you can see why they are as they are.  Some of the ranges i have been updating over the last few days but the rest i am doing gradually over the next week.

i know in a recession that is the last thing we should be doing and i know a lot of manufacturers who would just do it 'on the sly' and not even notify people what is going on but you all know that i dont work that way.

we have no choice and i hope you all understand.
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Offline Hasslefriesian

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Re: Costings
« Reply #1 on: March 23, 2011, 11:42:28 AM »
Of course, there's always the option of getting someone else (U.K based) to take all of the white metal production off our hands and sell it under licence so that we only sell limited edition resins. We give them all of the moulds currently at Ep's or at Griffin, sell them the castings we have at 60% discount and they give us 20% on all future sales.
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Offline Big Boris

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Re: Costings
« Reply #2 on: March 23, 2011, 02:10:33 PM »
Let me know if that's where you go with it ;)

Offline Big Boris

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Re: Costings
« Reply #3 on: March 23, 2011, 02:11:24 PM »
Course in my case I'd have to do it a section at a time for money reasons!

Offline Toosh

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Re: Costings
« Reply #4 on: March 23, 2011, 02:30:17 PM »
Price rises are inevitable and in an idea world, you would be reviewing your costs on a more regular basis (yeah I know, when you have a spare moment!). That way, the buyer has a smaller but more regular increase rather than a perceived 'jump'. I personally have no qualms with a price rise - in fact I would expect one at least annually anyway!

The quality of your models is excellent and at the cost you seem to sell them (3 for example) it's a VERY good price. Of course I haven't worked out the average cost of a model from yourselves, but I would think it would be much lower than I would expect :)

Bottom line is, you are there to run a business and we'd rather you were here for a long time, than not ;)  End of!
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Offline Dienekes

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Re: Costings
« Reply #5 on: March 23, 2011, 03:01:29 PM »
 :metoo:

Offline AKULA

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Re: Costings
« Reply #6 on: March 23, 2011, 03:12:34 PM »
Its always good to see some real figures for costings as a lot of people seem to have no idea of the costs involved in producing our shiney toys.

I'm sure most of us, also appreciate that, unlike, for the rest of us, that this isn't just a hobby - for Kev, Sally, and family, this is what pays the bills, and frankly a price increase has been long overdue.


Offline The Dreadnote

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Re: Costings
« Reply #7 on: March 23, 2011, 03:22:57 PM »
So long as you keep selling stuff I'll keep buying it - if it costs me more, so be it. Hell, you could double your prices and I'd keep buying.

Offline Thantos

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Re: Costings
« Reply #8 on: March 23, 2011, 03:42:28 PM »
Hell, i pay up to 10 for some single figures if they are nice enough. If its a figure i really like (like most of the HF range :p) price is not an issue, must have, must paint ;D
Ill keep buying regardless of price if the quality of the sculpts remains the same ;)



Shift to producing everything in resin?  :drevil2:

Offline Steel Penguin

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Re: Costings
« Reply #9 on: March 23, 2011, 05:59:31 PM »
price rise, or losing my acess to HF as it goes out sourced,.......
ill pay more.
 simple as.
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Offline Penfold

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Re: Costings
« Reply #10 on: March 23, 2011, 06:50:26 PM »
 :metoo:
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Offline RogerB

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Re: Costings
« Reply #11 on: March 23, 2011, 06:59:46 PM »
If it has to happen then so be it, I'll still be buying, and if I get my way with the Euro Lottery this weekend I'll have my own pet balding putty-pusher.

Offline Hasslefriesian

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Re: Costings
« Reply #12 on: March 23, 2011, 07:51:28 PM »
 :D
In the war-torn darkness of the future, there is only Grymn.

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Offline clam

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Re: Costings
« Reply #13 on: March 23, 2011, 08:48:51 PM »
I could write a book here about costs, sales, revenues, prices etc. - and what a balanced thing this is. Working with these things every day (in a more macro economic way, though), I know what dilemmas you are facing and how hard it is.

Bottom line is, though - if you keep provide, I'll keep on coming back. Hopefully others will, too.
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Re: Costings
« Reply #14 on: March 23, 2011, 09:10:07 PM »
Quote
If it has to happen then so be it, I'll still be buying, and if I get my way with the Euro Lottery this weekend I'll have my own pet balding putty-pusher.

Sod off I'm winning this week! I have my Kindred mapped out (great dane cavalry, airship, etc)... :d

Offline tremorspin

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Re: Costings
« Reply #15 on: March 23, 2011, 09:27:55 PM »
I don't think you have to be a cuthroat businessman to have a succesful business, but looking at numbers like that my suspicions that you (and for that fact all the FoD companies) were charging bottom end prices for top end figures is pretty well confirmed I think. I'm not going to say a price hike won't change things but hopefully charging what is a much fairer price will work out a winner in the long run. For my part I'll say I'd probably have bought even less stuff, but the amount of money I was happy to part with wouldn't have changed. So at the end of the day you'd get a better deal and I'd have a few more minis on my 'still to buy' list. Doesn't sound too terrible to me. I don't mind paying for the good stuff and that applies to more than just cheese and whisky. There are companies out there charging 9 plus for a single man sized mini and in a number of cases I'd pay it happily. Granted those sort of prices make me a bit more picky about what I pick up but the fact I can get minis of what is in all likelihood a higher quality from any FoD company at 1/3 if not less of the price is pretty telling.

It is not wrong to attach value to art, quality work or quality service. I get all three around these parts...

Offline cute_goth13

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Re: Costings
« Reply #16 on: March 24, 2011, 10:32:31 AM »
Hasslefree are worth the price rise!

Don't feel guilty, the price should have gone up long ago!
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Offline RogerB

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Re: Costings
« Reply #17 on: March 24, 2011, 11:23:17 AM »
Quote
If it has to happen then so be it, I'll still be buying, and if I get my way with the Euro Lottery this weekend I'll have my own pet balding putty-pusher.

Sod off I'm winning this week! I have my Kindred mapped out (great dane cavalry, airship, etc)... :d

I'm sure we could convince Kev to sculpt a few of those things when I win.  And telling your future boss to sod off isn't a good thing, but I'll forgive you this time.   :P

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Re: Costings
« Reply #18 on: March 24, 2011, 12:15:06 PM »
Hasslefree are worth the price rise!

Don't feel guilty, the price should have gone up long ago!

 :metoo:

Offline Brummie

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Re: Costings
« Reply #19 on: March 24, 2011, 04:43:27 PM »
 :metoo:

I agree look at what GW charge for some of there characters pieces almost double if not treble in some cases

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Offline Bungle

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Re: Costings
« Reply #20 on: March 24, 2011, 09:29:38 PM »
Quote
If it has to happen then so be it, I'll still be buying, and if I get my way with the Euro Lottery this weekend I'll have my own pet balding putty-pusher.

Sod off I'm winning this week! I have my Kindred mapped out (great dane cavalry, airship, etc)... :d

I'm sure we could convince Kev to sculpt a few of those things when I win.  And telling your future boss to sod off isn't a good thing, but I'll forgive you this time.   :P

Nah, it will be Thelwell type ponies.... airship could be good.....late period biplane perhaps like the Hawker Demon

And motor bikes..... and armoured train, trench fighters, a tank or two.

Grymm tank, walker and grav bike.

Human faction MICV....... and drop/assault ship

looks like someone else will need to do the hardware and leave Kev to do the softer stuff. like lots more figures

 
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Offline DRAGON

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Re: Costings
« Reply #21 on: March 25, 2011, 06:10:19 AM »
You make I buy - hell I have more expensive vices which are less healthy and the cost hasn't detered me from them......... :whistle:
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Offline Enazel

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Re: Costings
« Reply #22 on: March 25, 2011, 12:40:56 PM »
Guys, i keep buying from you at whatever the price. The figures are stunning and I love the customer service :)

Offline libertee

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Re: Costings
« Reply #23 on: March 25, 2011, 01:28:29 PM »
Guys, i keep buying from you at whatever the price. The figures are stunning and I love the customer service :)

aww shucks


thanks guys, you know we wouldnt be fleecing you!
A bank is a place where they lend you an umbrella in fair weather & ask for it back when it starts to rain. 

most mornings i wake up grumpy.   sometimes i just let him sleep.

my life consists of brief snatched moments of living my life hidden deep among chaos, confusion& the  going crazy, every night i go to sleep filled with hope & enthusiasm for the new day coming.  then i wake up & think "here I go again" & just aim to survive.

Offline BlackJack

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Re: Costings
« Reply #24 on: March 25, 2011, 06:50:23 PM »
My worst case scenerio would be if you increased your prices by 100-200% ... and even then it would just delay my purchases by a few years (like, say, seven).  :yup:
 
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