Budget Stark - Why do Hot Toys figures cost more now, than 5 years ago.

[EVILFACE]

Hot Toys and the rest are charging more because they can and the lemmings pay up.

 

[third3ye]

These two items are absolute drivers. Licensing is the most costly expense for HT outside payroll. The price of resins, oil and heat has raised considerably. Go to Target and check Star Wars 3 3/4 figure prices. The have probablly raised 30-40 % in the last 5 years.

Rent is a real cost. Not accountable to channel margin, however for EBITA it is a real expense and a component in calculating pricing. Most profitability systems will analyze PPE and account for allocations when calculating go to market prices.

Thanks for clarifying on toys prices.

As for rent, my point was about consumer perceptions and perceived fairness. Maybe I'm just speaking from my POV rather than the average consumer, but to me, I don't consider rent as an acceptable pass-through cost, but perhaps everyone else thinks it's fair.

I think we can both agree that all the fuss about pricing is a matter of consumer perceptions rather than business reality But to us, perception is the reality.

 

[Budget Stark]

I'm just bored with the whole price debate in every HT thread. I'll break out the old cliche that I myself hate so much but which undeniably has a bearing here with regard to the price issue - don't like it, don't buy it. Cut back, stop trying to collect everything, stop being a completist.

I think the logical collectors will tend to agree with you. I for one agree.

If you cant afford to pay the costs of these figures, then dont buy it/ stop collecting/ try to earn more money/ downgrade to other figures. It is like arguing the cost of a Lambo/ Ferrari/ Rolls Royce.

We are all buying pretty much the absolute top end figures in the market. So I find it very odd that some collectors are expecting to pay bargain bucket prices or moaning that it is expensive.

 

[Racetrack]

These two items are absolute drivers. Licensing is the most costly expense for HT outside payroll. The price of resins, oil and heat has raised considerably. Go to Target and check Star Wars 3 3/4 figure prices. The have probablly raised 30-40 % in the last 5 years.

Rent is a real cost. Not accountable to channel margin, however for EBITA it is a real expense and a component in calculating pricing. Most profitability systems will analyze PPE and account for allocations when calculating go to market prices.

Well oil has fallen 50% which has a knockon effect on just about every other aspect of every business. As for Star Wars figures, in the last 5 years the price has increased 20% ($7.99 to $9.99)

 

[hokietwo]

I'm just bored with the whole price debate in every HT thread. I'll break out the old cliche that I myself hate so much but which undeniably has a bearing here with regard to the price issue - don't like it, don't buy it. Cut back, stop trying to collect everything, stop being a completist.

Yeah it is very prevalent. Big reason we see it more and more now is the sad reality most old collectors and stalwarts of the boards are finally stopping collecting or planning to stop due to the increases. For many, entry prices were $150 for the best figures and now it's $300.

The sooner older collectors drop off the better it is for HT. The new collectors are trained at higher price points and are willing to pay as the secondary market for older figures is just as high as the current figure prices now.

 

[Racetrack]

If you cant afford to pay the costs of these figures, then dont buy it/ stop collecting/ try to earn more money/ downgrade to other figures. It is like arguing the cost of a Lambo/ Ferrari/ Rolls Royce.

My new year resolution is to stop smoking, so i can haz more hot toys

 

[third3ye]

As for Star Wars figures, in the last 5 years the price has increased 20% ($7.99 to $9.99)

+20% is basically compounded inflation. HT prices have nearly doubled right? Inflation is part of the picture but there's obviously a lot more that goes into it.

 

[hokietwo]

Well oil has fallen 50% which has a knockon effect on just about every other aspect of every business. As for Star Wars figures, in the last 5 years the price has increased 20% ($7.99 to $9.99)

You are incorrect with that growth. Growth is calculated variance/ base 2.00/7.99 it is like 25%. And I think your 7.99 price point is high.
Also don't know where you live but oil is not down 50%. And shipping carriers are definitely not lowering their delivery prices cause gas is cheaper.

 

[Racetrack]

You are incorrect growth. Growth is calculated variance/ base 2.00/7.99 it is like 25%. And I think your 7.99 price point is high.
Also don't know where you live but oil is not down 50%. And shipping carriers are definitely not lowering their delivery prices cause gas is cheaper.

The price of oil has fallen 50% per barrel in the last 6 months.

Re the Star Wars figures. Just checked and they were $6.99 from 2006. $7.99 from 2008 and $9.99 since 2010.

Rebelscum.com: Hasbro Star Wars Photo Archive

 

[Waste Time Continuum]

Every time this topic comes up I'm reminded of the episode of the podcast Hottoycast where Eamon and crew were interviewing one of the top guys at one of the smaller companies (I think it was the company that makes the new Dr. Who figs.). But he was saying he couldn't believe how Hot Toys could afford to sell their figures so CHEAP, when you consider the quality and all. He jokingly said the owner mist be a billionaire that loves toys and doesn't mind charging so little. I'm paraphrasing, but that was the gist of what he said. LOL

 

[third3ye]

Also oil prices having fallen is a relatively more recent trend, we're not going to see any immediate impact in the toy industry and certainly has had very little if any impact on carrier pricing. Cost of plastics and resins has probably benefited from the oil drop but I doubt by a huge margin.

 

[hokietwo]

The price of oil has fallen 50% per barrel in the last 6 months.

Re the Star Wars figures. Just checked and they were $6.99 from 2006. $7.99 from 2008 and $9.99 since 2010.

Rebelscum.com: Hasbro Star Wars Photo Archive

Thanks for clarifying, I thought you were stating oil prices from 5 years ago dropped that much.

 

[Y4NK33 PL4N3T]

Hot Toys and the rest are charging more because they can and the lemmings pay up.

 

[kevb0977]

I think the logical collectors will tend to agree with you. I for one agree.

If you cant afford to pay the costs of these figures, then dont buy it/ stop collecting/ try to earn more money/ downgrade to other figures. It is like arguing the cost of a Lambo/ Ferrari/ Rolls Royce.

We are all buying pretty much the absolute top end figures in the market. So I find it very odd that some collectors are expecting to pay bargain bucket prices or moaning that it is expensive.

It's just human nature I guess, initially people are shocked by the price but after venting & talking about it, they come to terms with it & either buy it or look for other things to collect..., I never like it when things jump up in value, if they creep up a little over time I'm totally fine with it but spikes in retail prices are what bugs me. Having said that, I don't have any issue with Hot Toys pricing, I know what I'm getting & I know that I'm happy to pay more for a diecast figure..., Gentle Giant's pricing I have issues with but that's another topic.

 

[Sweet Rabbit]

People need to understand EVERYTHING GOES UP ON PRICE, cost of living is relevant to time, my maintainence fees go up, food prices, gas prices and none of those things necessarily go up in quality or get better over time, so how do they expect these price to stay the same over time is unrealistic

People complain about Sideshow too

 

[Uncanny Web-Slinger]

Hot toys charges more for the same reason dogs lick their privates... Because they can

 

[SolidLiquidFox]

People complain about Sideshow too

oh the lies....

LOL

 

[Motuxmen]

Hot toys charges more for the same reason dogs lick their privates... Because they can

This is why Budget Stark made this video. To explain its not all about "just because they can". It's often because they must. To get these companies going it often takes millions of dollars in either loans or investments and eventually that has to be paid off. The first 1-4 years of nearly every business operates with zero net profit. Once a customer base is established then prices can be adjusted to actually not only cover current costs and pay off past investments but make a profit and expand.

And if you think companies don't make products at sell at a lose on the chance they can later recover you don't pay attention. The PS3 took six years before the console was selling for a profit. The ps4 is sold at a lose. The Xbox one at a lose. Jc Penny, Sears, ford, HP, Best Buy, Chevy, GM have all operated at a lose over at least a year.

As for some of the other points I've seen...yes rent is a pass thru cost. Not just for a retail outlet, like secret base, but a hq, and warehouse and factory. There's also cost of machines. Ect. But again it's not even the top two in costs. licensing and tooling are the top two. Then things like utilities (a manifacting facility can have electric/water/gas costs of hundreds of thousands a month) raw materials rent, shipping, ect.

As for the comment about the video by another manufactor...and him being surprised by hot toys costs so low. That's spot on.


As for the comment about per figure like costs. Just to clarify a bit because Im not sure exactly what u meant....if you meant like marvel vs dc vs predator. Which is how a lot of lines work. But because of the way hot toys does things and what it makes its not exactly the same. each movie is a new line as it where. Each movie has unique costs. So a marvel xmen DOFP is a unique line to marvel iron man 2. And iron man 1 is unique to iron man 2. So some in house costs may be cut, like tooling, when a character gets reused (though that may not always be the case) the licensing costs are 100-% new for each film. And remember, every single item/figure/base/weapon has to be approved by the licensing holders. So if Marvel says an armor needs changed then it gets new or adjusted tooling. If an actor says a HS has to change, then it either gets changed or not made.

Each film has a unique set of people who are involved. Could be other studios (like when u watch the beginning and it says Marvel and then lionsgate and then lakeshore entertainment ect) and directors and actors and prop masters and wardrobe. And the cost of one movie for the studio may be 40 mill while another 200 mill. The studio has to pay their bill even if the film bombs. So those things effect licensing costs. If a film bombs from a public company like marvel (that has stocks which influence operating income) it's often easier to deny approvals for licensing to get the film out of public minds so when your next film is in theaters audiences are not avoiding it becuase they think it's gonna suck, and investors are not afraid to invest. Investments and the stock market runs on perceptions. If a company appears to be undoing bad or making bad movies stock prices drop. Which means the studio has less money to invest in new movies. Which means they are in trouble

 

[murdomac]

Because they can is probably largely the answer, they are the market leaders and can charge what they please.

I agree there are a lot of cost implications that lead to higher prices but I also think that once all these are taken into account companies still bung some more on, because they can.

One of the problems is good business and greed are often one and the same, for instance there is no real financial reason why a MMS mk36 Peacemaker should cost any more than a PPS Red Snapper to produce yet it can retail for £150 more, of course you can argue thats good business make it limited/special edition it's rarer, more valuable to collectors and you could also argue thats just greedy.

Also I can't say for sure for sure what the % is Hot Toys have risen in the last year but I do know my wages have't risen in the last 2 years so they look more and more expensive, I'm not complaining really it makes me much more careful what I do buy and keeps my collection in check.

 

[spindrift]

I dunno- the HT secondary market for many of their top figures is not as good as it used to be- WE are paying secondary prices now for new releases! The flood of IM releases the past two years shows fatigue in the market- you can buy only so many IM....they no longer sell out immediately after release, etc.. Partly because I'm sure HT has increaded production on every figure quite abit.
They increase prices to keep their profit margins healthy.