TRU raises price on "retro-action" figures

[geoffdude]

I never said anyone had to like the idea of a POTENTIAL - not acutal - price
increase. One TRU in Brooklyn is not ALL stores.

And yes, I am glad to tow Mattel's line (whatever that is) because thanks
to them, new megos are on TRU's shelves. I am happy with the character
choices, and look forward to the future.

I leave speculation about the future to the crystal ball experts. I am enjoying
today.

I understand your situation here Doc., but your post was about what really? Were you saying price increases are "justified".. or were you saying something else?

I guess my main point was that you really didn't say, or add, anything to the threads main point one way or the other.

Speculation can be contained if facts are provided.

BTW - I'm enjoying the retro-line too; packaging goo, production quality, and price-point issues aside.

regards,

g

[geoffdude]

When I started this thread I knew it was going to be a hot topic so let me clear some things up....Mattel has committed to this line for 3 years 24 figures irregardless of sale fluctuations(Doc has stated this many many times)...so let us understand, if the line dies it will not be till then...

This is not actually true.

Couple of things. Doc noted that Mattel was "committed" to the line. And also that there were "plans" for 3 years worth of figures.

Neither of these statements mean there's a 100% certainty that all 24 figures will make it to shelves. Business conditions change fast, and many toy lines have met a quick demise as a result. Mattel's position is that they are doing the line, if it does well, for 3 years, but they probably reserve the right to drop it like a hot potato (now) if sales are flat.

Not saying I don't want 'em all.. just that we may not get them all.

regards,

g.

[Mikey]

There's a common misconception that most action figure collectors have endless amounts of money to invest in their hobby.
Seeing a Mego Ironman sell for $10,000+ on ebay doesn't help dispel this misconception to the general masses.

People don't notice more $5.00 Mego loose Spocks are sold than $10,000+ Ironmans.

The truth is some people have money and don't mind spending the extra scratch and some people don't - and a few extra bucks can decide whether someone buys a figure or not.

The second catagory (people that can't afford spending the extra money) far outweighs the people who don't mind.

This will translate to fewer sales until the figures are marked down.

This will inturn give the company a false impression the line is starting to fail and should be cancelled because of poor sales.

They should leave well enough alone and don't mess with a good thing (the line doing well and making them money)

That's my opinion.

[geoffdude]

I'm sorry, but I disagree on this point. It is Mattel's responsibility to maximize shareholder value by maximizing the net present value of all future cash flows. Sometimes, that translates into price increases.

For example:

If the figs cost $10 to make, and they wholesale for $15, Mattel makes $5 profit per fig. If they sell 10,000 of them, that's $50K profit.

Raise the wholesale price to $18, and that's $8 profit per fig. Now, they need to sell only 6250 figs to make the same $50K profit. I'd argue that sales wouldn't drop off by 3750 from 10,000.

So, if they sell 8000 figs at $18, the profit is then $64K. Mattel has done the right thing by raising the price, even at the lower sales volume...assuming they order fewer of them and don't have to eat 2000 unsold figs.

Now, I have no idea what Mattel's real numbers are. This is just one hypothetical scenario. However, you can plug different numbers into the calculations and still reach the same conclusion - that raising prices can be the right move, if sales don't decline past a break-even point. Mattel wants to make the most profit that it can, and not necessarily sell the most product that it can.

Most of the arguments against raising prices seem to be that A) TRU already has villain peg-warmers, and B) sales will drop significantly, jeopardizing the line. If I were Mattel, I'd produce a higher percentage of heroes to villains from now on, and I'd be prepared to see a certain amount of decline in sales. And if sales dropped catastrophically, I'd be prepared to drop the price back down. I've got to think that Mattel would be prepared for that.

Just to be clear, I'm not debating the morality of the increase. As a customer, I'm not any happier to see the price going up than anyone else on the board. I'm just saying that the numbers might make sense. Come to think of it, maybe the best response is to buy stock in Mattel, and be on the receiving end of the increase.

'Morning all,

You touch on another issue not really discussed in detail within this thread yet. The possibility that the production "quantity" my be going down (which I and others have brought up elsewhere) .. this may be THE reason for any future price increase if it's to happen.

Basic production cost remain fixed I would think, but if lower production runs are to happen then there's less product to provide at retail for the profit margin needed to keep the line going. Thus price per unit must be raised.

regards,

g.

[Meule]

If they pop up at 22.99, commence your whining. Though even then you can still order them from Amazon for 19.99 with free shipping.

Unfortunately I can't. I'm already getting screwed on shipping, so forgive me if I don't look forward getting screwed again on the price

[samurainoir]

Just to give you guys the Canadian perspective, I would love to see the figures at $22.99 at TRU, since thus far the only prices I have seen are generally around $28 in the local comic shops, with the exception of one store which sells them at $25. I'm wondering if Canadian TRU will even be getting the Retro figures given the fact that I've yet to see any.

I would have accepted this in years past given the exchange rate, we are used to paying overinflated prices on pretty much everything from toys to books to comics to CD's to DVD's etc etc.

However, given the fact that we are pretty close to par with the US dollar makes this kind of gap between US and Canadian prices a bit frustrating. Particularly when you look on the packaging and see that it's packaged locally!

[stabilio]

There have been stores in the New York metropolitan area selling these for $22.99 since the day they first showed up. For whatever reason, its only been a few locations. The rest of the country has been 19.99. So really, quit the whining until you see them for $22.99 because this thread is just going to be a waste of space when they show up at $19.99. Because as it is, this whole thread is based on what? What a TRU employee at one store told one person?

If they pop up at 22.99, commence your whining. Though even then you can still order them from Amazon for 19.99 with free shipping.

[megoscott]

Not a big deal, but it's Toe the Line, not Tow.

[enyawd72]

>there will NEVER be any MARVEL EMCE Mego-ish figures

I wouldn't say never. All sorts of things can happen. Hell; how many folks thought we'd never see Mego style figures again?

>Many toy lines never get beyond a wave 2. The factors for why are too many to list.

Maybe that's why they want the price increase? To make the quid before precedence says the ride's over.

Don C.

Despite Hasbro's Marvel toys, Diamond is still producing it's Marvel Select line of figures, and Diamond already has an established relationship with EMCE, so it most definitely IS possible to get an EMCE/Diamond Marvel toyline.

Sorry Geoffdude, you don't know everything.

[drmego]

I never said anyone had to like the idea of a POTENTIAL - not acutal - price
increase. One TRU in Brooklyn is not ALL stores.

And yes, I am glad to tow Mattel's line (whatever that is) because thanks
to them, new megos are on TRU's shelves. I am happy with the character
choices, and look forward to the future.

I leave speculation about the future to the crystal ball experts. I am enjoying
today.

[trekman101]

When I started this thread I knew it was going to be a hot topic so let me clear some things up....Mattel has committed to this line for 3 years 24 figures irregardless of sale fluctuations(Doc has stated this many many times)...so let us understand, if the line dies it will not be till then.....believe me,Mattel feels these figures should have always been $25 or more.....sales tell them they are more right then wrong......the next Matty exclusive figure may be more than $20(maybe $30?).....if Mattel raises wholesale prices it will also affect Diamond and its retailers,so the price spread between them and TRU wil likely stay the same...... if Mattel doesn't make money on this line it will not affect them at all,so we really have no leverage on them...sure they want it to do great but they are not going to loose sleep over it...they know in the long run people will be glad these figures were made at all(on another note,if Hasbro wants to make a retro Marvel line...THEY WILL...it might be way more superior....and Mattel isn't concerned)....I have been told by a district TRU manager that the Mattel retro line sells well and that it is normal for some stores to sell out fast while others sell them very slow...this happens to most toy lines they carry.....wave one was a test and Mattel will likely correct production numbers for certain figures(same over all total per wave...with higher numbers of heroes made)aiding the peg warmer trend....I have stated what is....not speculation....I know the figures are expensive but many things we want to buy generally are....if you don't want to pay the high price and wait you can but some figures may go out of production leaving you scrambling to find them and then if Mattel re-issues the figure I bet it isn't the same(some variations will be put in play)...then you will have another issue to deal with....I have a TRU rewards card and they are always sending me discount coupons...this helps me save money ....the decisions are yours but the line is going on so you have to figure out how to deal with it...one last thought...if the line ended today every one would ***** and moan how we got screwed....we can't have it both ways

[blastphemey]

wow^^ im not sure about them raising the price though, because they arent selling at $19.95( at my TRU anyway) so they certainly wont sell at $25. although im not sure i can compete with your logic duncan

[Duncan]

Raising prices on any product is not GOOD business (basic business 101). Adding MORE value to a product for current price IS good business.

I'm sorry, but I disagree on this point. It is Mattel's responsibility to maximize shareholder value by maximizing the net present value of all future cash flows. Sometimes, that translates into price increases.

For example:

If the figs cost $10 to make, and they wholesale for $15, Mattel makes $5 profit per fig. If they sell 10,000 of them, that's $50K profit.

Raise the wholesale price to $18, and that's $8 profit per fig. Now, they need to sell only 6250 figs to make the same $50K profit. I'd argue that sales wouldn't drop off by 3750 from 10,000.

So, if they sell 8000 figs at $18, the profit is then $64K. Mattel has done the right thing by raising the price, even at the lower sales volume...assuming they order fewer of them and don't have to eat 2000 unsold figs.

Now, I have no idea what Mattel's real numbers are. This is just one hypothetical scenario. However, you can plug different numbers into the calculations and still reach the same conclusion - that raising prices can be the right move, if sales don't decline past a break-even point. Mattel wants to make the most profit that it can, and not necessarily sell the most product that it can.

Most of the arguments against raising prices seem to be that A) TRU already has villain peg-warmers, and B) sales will drop significantly, jeopardizing the line. If I were Mattel, I'd produce a higher percentage of heroes to villains from now on, and I'd be prepared to see a certain amount of decline in sales. And if sales dropped catastrophically, I'd be prepared to drop the price back down. I've got to think that Mattel would be prepared for that.

Just to be clear, I'm not debating the morality of the increase. As a customer, I'm not any happier to see the price going up than anyone else on the board. I'm just saying that the numbers might make sense. Come to think of it, maybe the best response is to buy stock in Mattel, and be on the receiving end of the increase.

[MIB41]

BOTTOMLINE: It is both unwise and, in many ways, irresponsible to be increasing the ticket price in an economy like ours. Just goes to show you how much money they are truly making off these. Pathetic...

[ctc]

>there will NEVER be any MARVEL EMCE Mego-ish figures

I wouldn't say never. All sorts of things can happen. Hell; how many folks thought we'd never see Mego style figures again?

>Many toy lines never get beyond a wave 2. The factors for why are too many to list.

Maybe that's why they want the price increase? To make the quid before precedence says the ride's over.

Don C.