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Post by KeBen Owens on Feb 3, 2011 6:23:17 GMT -5
Just heard this on my local news from the business report. Mattel is planning on spiking the prices of all their products across the board by 9%. They cite packaging costs and the cost of Chinese labor as the main reasons for said markups.
I sure hope this doesn't mean the early end of WWE's relationship with Mattel...I know a couple of you guys are already reporting price hikes.
-BEN
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Post by PJ on Feb 3, 2011 6:27:15 GMT -5
Why would it mean an early end to their relationship? Every year every company raises prices.
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Post by AdamBomb on Feb 3, 2011 6:45:01 GMT -5
Sucks man, but they have to do what they have to do. Lucky for us that they try to maintain the same quality we have come to expect. Had cuts not been made elsewhere in the budgets... who knows what prices would have been like. As collectors, and supporters, I think people need to cut Mattel some slack. It's not like they WANTED this to happen.
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Post by carly1988 on Feb 3, 2011 7:48:14 GMT -5
Its that damn Barbie's fault!!
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Post by "Original Broski" jonjon535353 on Feb 3, 2011 8:11:44 GMT -5
I say we blame the Flex Force line. It's a pointless line, that practically noone buys. They aren't like the cheap Havoc Unleashed figures that less fortunate families could buy their children, they're nearly the same price as Basics, but with less articulation and detail.
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Hacker
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Post by Hacker on Feb 3, 2011 8:29:07 GMT -5
I know they want their packaging to look impressive to draw attention to potential buyers, but as someone who buys their product, I personally don't care about the packaging. It could come in a brown paper bag and I would buy their product. I just hope they simplify these types of things to cut cost, and not the figure detail or quality.
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Jackass Pacific
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Post by Jackass Pacific on Feb 3, 2011 8:37:25 GMT -5
damn chinese new year...
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Post by Bandalero on Feb 3, 2011 8:40:04 GMT -5
I saw this news report yesterday, Mattel's 4th quarter earnings for 2010 actually increased by 9% to $2.12B, but because of rising production costs they're raising prices across their product lines.
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Kollecting King
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Post by Kollecting King on Feb 3, 2011 8:44:29 GMT -5
I say we blame the Flex Force line. It's a pointless line, that practically noone buys. They aren't like the cheap Havoc Unleashed figures that less fortunate families could buy their children, they're nearly the same price as Basics, but with less articulation and detail. That has nothing to do with it at all if they got rid of that line it wouldn't do anything for the other lines it would just be less figures. I personally like Flex Force so i have no problem with them as they are fun figures just to mess around with and remind me a bit of hasbros with the actions. And they made cuts already with the removal of the stands, eliminating the cut outs on the back of the elite packaging. So we might see a slight increase or its possible we already have.
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Post by LeighD on Feb 3, 2011 9:20:10 GMT -5
I mean obviously this isn't Mattel's fault. This happens to businesses everywhere and a lot of the time. And I don't think this would end the business between WWE and Mattel. If it did I would be VERY surprised.
On the flipside, when I have bought the few Mattel Legends figures I have, I felt like I was buying a LOT of packaging. Did anyone else feel this way?
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Post by thephenomenalone on Feb 3, 2011 9:22:09 GMT -5
Meh, it happens. I was surprised honestly when i checked out at toys r us the other day at how low the price was cuz i thought it'd be 3-5 bucks higher...guess i got my wish
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Post by Chip on Feb 3, 2011 9:24:34 GMT -5
business as usual. rich get richer.
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Post by punksnotdead on Feb 3, 2011 9:36:42 GMT -5
That seems like a pretty big deal to the average consumer market. Lets say that takes Elites and Legends from $14.99 to $15.99, which I think it has in places, then the average parent buying a toy for their kid could pass on that all together. I think for collectors, the figures have a degree of inelasticity because we want them, we will pay for them, and there really is no substitute. Although, some will cut back and others will stop collecting all together. I don't like the "prices always go up" argument, not in this economy. Not when the majority of companies in this country are fighting to keep MSRP low in order to fight for survival. I'm interested to see how this impacts sales. I think there is a fair amount of issue with the Mattel pricing from a ton of people right now and this isn't going to help the argument.
If I was Mattel, I would go over every inch of my packing production and see where costs can really be cut (possibly cheaper package artwork?). As was said previously, the packaging hardly matters to about 85% of the consumers. The Legends line was already minimized, and who knows if Elites are next. I get that Mattel is a high quality product, and we should have to pay for quality, but again that is "collector" thinking and not average consumer thinking. Big deal imo.
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threehgame
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Post by threehgame on Feb 3, 2011 9:51:33 GMT -5
What I want to know is what are Mattel's profit margins on the WWE line? Are the production cost increases cutting into the profit margin or are they obliterating it? Or is it simply that Mattel put out so much in getting the WWE license, making molds, and signing Legends contacts that they need big returns to break even.
I understand lines such as Barbie and Hot Wheels needing a price hike, the WWE line not so much.
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Post by marino13 on Feb 3, 2011 9:57:15 GMT -5
It is what it is. Mattel has done a fantastic job, and I don't plan on stopping.
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Post by Dangerous Donovan on Feb 3, 2011 10:00:24 GMT -5
I have to place some of the blame on the stores. I know that the stores that carry these want to make a profit, but how much profit are they making? I am curious as to what they pay for these figures and how much markup they have.
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Post by derakp on Feb 3, 2011 10:39:19 GMT -5
At what retail price point would everyone stop collecting altogether? For me, it would be $20 per Elite/Legends...hopefully it won't get that high.
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Post by jmoneynwo2003 on Feb 3, 2011 11:12:31 GMT -5
They’ve annihilated Jakks’ entire run in their first year with the license, they have my support 100%. My only regret is they didn’t have the line from the beginning so the certain guys that were modern at the time but not legends now would’ve got figures. An elite Mattel Pirate Paul Burchill immediately comes to mind, how awesome would that have been?
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threehgame
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Post by threehgame on Feb 3, 2011 11:34:10 GMT -5
I have to place some of the blame on the stores. I know that the stores that carry these want to make a profit, but how much profit are they making? I am curious as to what they pay for these figures and how much markup they have. Average price for items at big chains stores are double the cost of the item for the store. So say a basic figures costs $10 at Wal-Mart. Most likely Wal-Mart paid at most $5 for the figure. Because Wal-Mart buys in huge lots (tens of thousands of figures at a time) they could be paying $4 to $3.50 a figure. Usually that means Mattel had to put out $2.50 to produce the figure, the packaging, and shipping to the USA.
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Post by ~*Young $ Money*~ on Feb 3, 2011 11:37:47 GMT -5
I don't understand why the packages have to be so big and elaborate. I mean look how big the legends plastic bubble is. It don't need that much. Defining moments is the same thing.Basics and Elite aren't to bad.
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