Quote Originally Posted by LansXero View Post
Except thats good money sitting there doing nothing. Investors dont invest so their money does nothing.
Depends on the cost ratios. In GW’s case there is a heavy upfront cost (the design and moulds) and then a cheap per unit production cost (the minis themselves). To make your upfront costs back you want to maximise the number of sales you make overall, which generally means capturing as many sale opportunities as possible. If product is unavailable, it’s a missed sale opportunity.

Historically, running a warehouse would be a large cost. With technology now, it might be cheaper. There will be a point where the per unit cost of warehousing is low enough that it is profitable to overproduce and store in order to capture the tail end of sales. I don’t know if GW is at that level atm; an alternative may be that their factory technology allows them to do very small runs of models efficiently, which would allow them to fulfill the tail end sales without needing to warehouse. Point is, I suspect that technology in their factory/warehouse, and online selling, is proving very useful in extending a product’s availability and profitability.

(Incidentally, I’m expecting to come into some money soon, and very tempted to invest some in GW. Wish I’d done so a few years back though!)