Let me start by introducing myself, my name is Mike Jones and I'm the Sales Director for Games Workshop America.  I wanted to say a few words about this, as we thought it was well crafted and well thought out, and deserved a response from us.  We certainly do encourage retailers to bring issues such as these to us, so we can both work together to resolve them.

There were a couple of items I needed to address, as they seem to have been based on some bad information.  It is correct that we did lower our discount; this was done almost a year ago in August.  This was done largely to invest in the new Territory Managers program.  Right now this program has been operational only in the Northeast, where is has been a huge success.  Under this program, key GW staff have been able to visit stores in their area to help out with issues retailers may have, and work with them to help out in any way they can.  This program will be spreading through America, with the next area to be the West Coast starting next week actually!  We have no plans to change our discount rates in either direction in the foreseeable future, as we do want to grow this program as we've seen how well it has worked so far.  We'll be talking more about this program soon, as we get the West Coast launched and then move to other areas.

Speaking of discounts, it was noted that our own retail stores/hobby centers regularly offer discounts.  To be blunt, this simply isn't true.  We do special sales for Grand Openings, but really that's it. In fact, this year we didn't even do an End of Year sale as we had in the past.  Both our Mail Order and retail stores adhere to full retail pricing.  We've dropped the old Mail Order 'Bargain Basement' also as it gave the impression that we were discounting.  As mentioned in the letter, we do discourage discounting and we mean it.  We've been particularly focused on internet discounters, who in our opinion do harm traditional retail outlets.

There are obviously many areas that we need to improve on, and we're using the feedback we've gotten from retailers on these.  We do survey calling of retailers throughout the country to get direct comments and suggestions each month; we also do retailer seminars and discussions at our Games Day conventions and other shows.  These have all given us a great look at what areas we need to improve.  Trade Order Forms are one area; new ones are getting printed up as I write this.  By popular demand you'll also be seeing the return of Trade Secrets, the periodic retailer mailing of upcoming products and retail ideas.  Our store locator listings procedures are getting overhauled to streamline and speed the process; there is a long lead time for the listings in White Dwarf magazine but we're going to shorten it as much as we can.  We're also working on making our Rogue Trader Tournaments more accessible and affordable, as retailers will be able to purchase thepackages using their regular terms like any other product.

Overall, I think we're turning around the way we and retailers are working together.  Obviously there are many things that still need improvement, but letters like this are a great way to get discussions started and problems fixed.  Our sales with retailers is the largest part of our business, and we honestly want to work with them rather than against them.  As I like to say, work with us and we'll work with you.  We do want to hear from retailers about how we can improve doing things, and we do listen.  Not all changes can be made rapidly, it's evolution rather than revolution I'm afraid, but I am serious about this being something Games Workshop is committed to seeing through.

To all retailers who read this: please feel free to phone or call us direct if you would like to chat over any problems you wish to bring to our attention.  I can be reached at 410-590-1400.

To conclude, thanks to these retailers for this constructive letter.  We are working hard in many areas to improve our relationship with retailers.  The Northeast region has shown us the way forward, by getting out and talking to retailers face to face, and putting thing right.

Mike Jones
Sales Director
Games Workshop America