Hot Toys, you’re going to put yourself out of business!

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I've been saying this for awhile. HT is shooting them self's in the foot. To much to soon. This goes for everything with them... product, price and greed. 2.0 my @ss! bye bye HT's!!
 
I don't think HT will last more than two years if their prices keep steadily going up.

They've been in business for 11 years now. In 11 years - prices go up. Try buying almost any product at a price that was around in 2000 or 2001 - even a Mars bar that was 25p in the UK is nearly a quid now (3x price)
A quote of $150 was given for an early Arnie release. The dollar value slipping has put the US prices up, not to mention natural inflation. Blame your finance dudes, not the HT dudes.
 
It's not always about finances. :rolleyes:

I can afford them but am not willing to shell out $230 plus for a 12 inch doll which isn't limited edition and doesn't sell out. More power to you if you do it.
 
That's just not how the world works. Higher price, higher quality and fewer customers is a completely legitimate business strategy ... happens all the time. Works for BMW, Mercedes, and Porsche. Works for Heckler & Koch and Kimber. Works for Omega and Rolex. Works for Armani and Coach. Works for Nike.

BMW doesn't want to be Ford. HK doesn't want to be Glock. Omega doesn't want to be Casio. Coach doesn't want to be ... whoever else makes purses (gotta tell ya, that's the only purse brand I know -- side effect of marriage). Nike doesn't want to be Addidas. And Hot Toys doesn't want to be Hasbro. They want fewer customers at higher prices, and they're making a killing at it.

SnakeDoc

Few customers that pay alot may work for all of the larger and more pricey items that you listed - ten BMWs sold might pay the wages of all the employees in the factory that made them for a week. When you're dealing with those kinds of numbers, it's easy to go big. Meanwhile, HT needs to sell a large quantity of figures just to break even. It's just not an accurate business example - the profit margins are way off.
 
Few customers that pay alot may work for all of the larger and more pricey items that you listed - ten BMWs sold might pay the wages of all the employees in the factory that made them for a week. When you're dealing with those kinds of numbers, it's easy to go big. Meanwhile, HT needs to sell a large quantity of figures just to break even. It's just not an accurate business example - the profit margins are way off.

Do you know how much HT makes off of a single figure in a 5k run after production costs and licensing?
 
That's just not how the world works. Higher price, higher quality and fewer customers is a completely legitimate business strategy ... happens all the time. Works for BMW, Mercedes, and Porsche. Works for Heckler & Koch and Kimber. Works for Omega and Rolex. Works for Armani and Coach. Works for Nike.

BMW doesn't want to be Ford. HK doesn't want to be Glock. Omega doesn't want to be Casio. Coach doesn't want to be ... whoever else makes purses (gotta tell ya, that's the only purse brand I know -- side effect of marriage). Nike doesn't want to be Addidas. And Hot Toys doesn't want to be Hasbro. They want fewer customers at higher prices, and they're making a killing at it.

SnakeDoc

This is likely the most true statement about hot toys and is very well the most accurate assessment of the company. I for one love there products and have a fairly sizeable collection which did'nt come cheap in the first place. Hot toys have been and will always be expensive, there the best there is at what they do, and what they do is very nice:wink1: That said I understand prices go up but they have been pushing the envelope alittle to far to fast, I am not rich and certainly not poor, just mid-level middle class I guess and I have gone from getting 2 or sometimes three figures a month to getting one a month if that. Point is I have slowed down and stopped buying everything that looks cool to getting must haves only. I will likely slow down further on buying them but I can't fault them for that as its mainly a question of my financal prioritys. The higher in price they go the less I buy its simple economics from the buyers standpoint.
 
Why the hell would any company that is in the business to make money want fewer customers???? If I was in the toy business I would want as many people as possible to buy my products and not be so arrogant to say we will only sell to the rich.

There is a reason you're not in the toy business. They want fewer buyers because they make more money selling a few very expensive figures to richer people (or bigger spenders) than they do selling a lot of cheap figures to less-rich people. This is not particularly high-level microeconomics.

They know their market -- people that want their toys want near-perfection, and they're willing to pay for it. They want a perfect sculpt and paint. They want tailored clothes. They want realistic and near-functional weapons. They want every license that ever dawned on them. That ain't cheap.

If they wanted to fully maximize the quantity of their customer base, they'd make $20 figures. They lose a lot more customers in the jump from $20 to $150 than they do in the jump from $150 to $250. Their business model is selling high-end figures. The number that are willing to pay $150 for a toy is probably not hugely different from the number that are willing to pay $250. They increase the price by two thirds ... and lose probably less than 20% of the buyers (if any -- they still seem to sell out, it just takes more time). Hell, most of the people here who complain about price just wish they had more money. They'd pay it if they had it. Hardly a line-in-the-sand.

There is also something to be said for brand prestige. A prestige brand stays that way by making something that a lot of people want, but not everybody can afford. If everybody that wanted one could afford it, it loses its exclusivity. People who buy high-end items (toys, cars, guns, watches, etc.) like exclusivity. Exclusivity sells. If everybody has one, it just isn't as impressive on the shelf ... or in the garage, or at the shooting range, or on your wrist.

Few customers that pay alot may work for all of the larger and more pricey items that you listed - ten BMWs sold might pay the wages of all the employees in the factory that made them for a week. When you're dealing with those kinds of numbers, it's easy to go big. Meanwhile, HT needs to sell a large quantity of figures just to break even. It's just not an accurate business example - the profit margins are way off.

It is a completely "accurate business example". The profit margins make complete sense. Guarantee they're making well over $100 per figure -- pure profit. Sell 500, make $50K. Sell 5000, make $500K. They don't release the numbers on each figure's run ... but I'd bet they're selling at least 1000 of each figure. Probably a lot more on the big releases (Batman, Avengers have to be near 10000. If so, at $100 profit per figure, you're looking at $1M on each one).

And, those are conservative numbers ... they're probably making far more than $100 on each figure (I'd bet closer to $150), and probably selling more than 1000 of most releases (including US, Europe and Japan). Their profit margins are fine without chasing lower-end buyers.

SnakeDoc
 
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It is a completely "accurate business example". The profit margins make complete sense. Guarantee they're making well over $100 per figure -- pure profit. Sell 500, make $50K. Sell 5000, make $500K. They don't release the numbers on each figure's run ... but I'd bet they're selling at least 1000 of each figure. Probably a lot more on the big releases (Batman, Avengers have to be near 10000. If so, at $100 profit per figure, you're looking at $1M on each one).

And, those are conservative numbers ... they're probably making far more than $100 on each figure (I'd bet closer to $150), and probably selling more than 1000 of most releases (including US, Europe and Japan). Their profit margins are fine without chasing lower-end buyers.

SnakeDoc

Oh yea, says who?
 
I haven't ordered a HT figure since '89 Batman and have nothing on pre order. Other than possibly getting Hulk I'm done with Hot Toys.

Over priced figures and flavor of the month licenses has made it very easy to stop buying HT figures.
 
Over priced is subjective. i think a lot of this is based on frustration because we all wsnt HT products but many of us just can't afford to keep up. This hobby has gotten immensely popular in the last 3-4 years. And part of pricing is demand. And if any of us ran hot toys we'd probably be doing the same thing.
 
The higher price is warranted.

I was on £3.80 a hour when i first started buying now its around £6. About the exact same ratio that the prices of the figures have went up. Minimum wages in difference between then and now.

On top of the prices of costs and materials going up for the manufacturing companies, and the customer's wages being higher by default than the original if you pit a figure from 3-5 years ago to a figure now the old figure would look like crap in most cases. The tailoring, bodies and head sculpts as well as the packaging these days is far superior.

When i first started collecting if i would spend £80 on a 1:6 figure id need to debate on it for literally weeks. Now if i want a figure and i have to pay £200 for it because thats what they cost now i buy it. Todays £200 is a few years ago's £80. I move with the times i dont dwell on the past prices or else id never own anything anymore.

The figures prices have " gone up " but at the end of the day the percentage they cost out of each persons monthly bill is probably the same. I know it is for me. So i dont get the backlash.
 
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Do you know how much HT makes off of a single figure in a 5k run after production costs and licensing?

do you REALLY think they're only doing 5k runs of figures these days?

As easy as they are to accuser, i think they might be making 2-3 times that per figure.

Lets not forget that Hot toys DOES NOT publicly release edition sizes.
 
The higher price is warranted.

Forget 3-5 years, MSRPs have risen around 50% in two years. If your examples ring true, then similar products should also have risen 50%. From my toothbrush to my power tools, not a single product in my house has risen by that margin. And to compare like with like, Medicom and Enterbay prices have remained pretty consistent in that period. HT must be sourcing their materials from the moon and manufacturing in German factories rather than Chinese ones.

Not that I really care. I'm so bored with their releases of late I wouldn't fish them out of a bargain bin.
 
Yeah, i dont think it's a materials question. They saw what their products were selling after market. Why let the after market make that money? This is all demand based. Maybe with a touch of increase in licensing costs.
 
Forget 3-5 years, MSRPs have risen around 50% in two years. If your examples ring true, then similar products should also have risen 50%. From my toothbrush to my power tools, not a single product in my house has risen by that margin.
At the same time as i started buying Medicom figures (which were my first 1:6 figures) i could buy my fave meal for £2.30. Now its £3.00 from the same shop. When i would go to a bar my favourite drink was about £2.20 a pint now its £3.50.

Not everything goes up in price. But alot does. Thats why the minimum wage is being put up higher every time. Because the cost of living is raising all the time.

But you live the other side of the world than me so your situation might not be the same.
 
The number that are willing to pay $150 for a toy is probably not hugely different from the number that are willing to pay $250.

There are a lot of people that are unhappy with there pricing, rich or poor, look on this website, Facebook, etc. They are giving you less and charging more, you can't tell me that you are happy with that. Look at the T2 T-1000, it came with enough stuff to almost make a second figure for $160 and flash forward to today and look at the Wolverine that was just announced, a couple of hands and a base and a $h1T HS for $75 more. I don't know a ton about business, but when a huge backlash of former happy customers happens are cheering on the downfall of a company, there is a real problem.
 
At the same time as i started buying Medicom figures (which were my first 1:6 figures) i could buy my fave meal for £2.30. Now its £3.00 from the same shop. When i would go to a bar my favourite drink was about £2.20 a pint now its £3.50.

Not everything goes up in price. But alot does. Thats why the minimum wage is being put up higher every time. Because the cost of living is raising all the time.

But you live the other side of the world than me so your situation might not be the same.

Food is something that has really has skyrocketed in price in Australia, out of all proportion to the raise in wages. On the other hand the Australian dollar has risen against the US dollar, so imports are cheaper, income tax rates have fallen, inflation has been constant, interest rates have fallen and wages have risen. And still I look at what's coming out today and scoff at the MSRPs of some of this stuff. Good for HT if their strategy of massive edition sizes, re-releases and increasing MSRPs works for them... like I said, I'm more disappointed with what appears to be a lack of imagination re: their license selection.
 
I haven't ordered a HT figure since '89 Batman and have nothing on pre order. Other than possibly getting Hulk I'm done with Hot Toys.

Over priced figures and flavor of the month licenses has made it very easy to stop buying HT figures.

This is pretty much where I'm at. I have Hulk on preorder and then I'm done with HT.

do you REALLY think they're only doing 5k runs of figures these days?

As easy as they are to accuser, i think they might be making 2-3 times that per figure.

Lets not forget that Hot toys DOES NOT publicly release edition sizes.

That was my point. Nobody knows their profit margin, but with the overall quality dropping on every release (they're not even taking the time to nail likenesses like they used to) and more and more licenses being announced, only a fool would argue they're not seeing huge profits off of every release. Even moreso when you consider how many are re-releases and minor variants.
 
I'll get Ada from Resident Evil 4, but I'm leaning toward quitting or slowing way down on my Hot Toy collecting as well. $250 Iron Man and $235 Wolverine don't seem like good buys to me.
 
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