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.
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.


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


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