If they improved the quality/likeness/value then i'd be fine with paying more for it. But they don't. Things won't change though seeing as people continue to support them, despite re-releasing the same stuff over and over again.
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
heh, this reminds me of many conversations about Games Workshop and how they are going out of business by constantly raising the prices of their 30mm figures.
Well, they actually made more profits lately than few years ago, even though they have kept raising their prices. (Some) People keep complaining about it in the net and still GW isn't going out of business.
Is it always fair? Perhaps not, but thank god there are alternatives if you don't like their pricing.
If they improved the quality/likeness/value then i'd be fine with paying more for it. But they don't. Things won't change though seeing as people continue to support them, despite re-releasing the same stuff over and over again.
Right now it just sounds like you're stretching with those numbers...
This might explain a lot, its from a news story a couple years ago.
It's not really Hot Toys being greedy, just a major increase in business costs the last few years.
"Looking to China for cheap production? Not so fast.
Recently workers of Foxconn (the makers of Apple's iPhone) and Honda received raises of about 30 percent, a move expected to trigger a wave of salary hikes at factories across China. The rising costs are expected to affect prices for a host of consumer products from smartphones to t-shirts, with labor-intensive sectors such as textiles and toys likely to be the most affected. Profits could begin to erode as early as the second and third quarter of this year.
"If labor accounts for about a third of a company's total costs, a salary increase will greatly affect its profits," analyst Andrew Wong of Hong Kong's Quam Securities told Hong Kong's The Standard newspaper.
The increase in salaries at Foxconn follows a public uproar in the wake of 10 suicides at the electronics manufacturer's plant. Honda's rising payroll came in response to striking workers at a key car parts plant.
Besides the recent upward pressure on wages, production costs in China have been rising thanks to government regulations on taxes and retirement insurance, as well as more expensive raw materials. Another challenge is an increase on the price of gas and diesel fuel, which rose 4.1 percent and 4.5 percent respectively in April 2010. Those figures are up 28.7 percent and 29.5 percent, respectively, from the end of 2008, according to the Hong Kong Trade Development Council's report on "Mounting Price Pressure on China Exports."
That likely means higher prices for consumers and small businesses the world over. Says Credit Suisse's Tao of companies' response to rising prices: 'They're going to have to find a way to pass this on to the end user.""
Looks we are starting to see these increased costs now.
Nope. All that is wrong.
Nope. All that is wrong.
There's truth to this though. The law was passed, but I know with airsoft manufacturing, the companies are letting go of whole elements of staff before they reach the 90-day limit to increase salary and offer benefits. So you literally have waves of newbs coming on every three months from warehouse to warehouse and just when they start to nail down what they're doing, time to switch again. Also might explain the continual and inconsistent QC issues.