Author Topic: Pricing tactics in stores....  (Read 1590 times)

Offline dax415

  • Lieutenant
  • *
  • Posts: 192
  • Feedback: +2/-0
Pricing tactics in stores....
« on: April 23, 2010, 05:51:14 PM »
Hey guys,

     Was out and about looking at prices for figures at Walmart and Target and noticed some patterns in how the figures were not only priced, but which waves were put out.  Over the last year I've noticed Target and Walmart almost never have the same waves on the pegs and if so, put a very small amount of the same ones on the shelves.  In my area, there were entire waves that didn't see the light of day except a box here and there.  I'm assuming they have buyers which dictate whether or not they purchase alot of figures or not.  Lately I've noticed Star Wars prices drop from 6.99 to 6.00 and of course the more desirable figures were definately in the 6.99 range.  Talked to one of the toy managers in my area and he said be prepared for the star wars figures to shoot up in price.  If like myself you were customizing, the prices for Rise of Cobra GI Joe figures just shot up from 5.00 to 6.99 (or was it 6.49 i forget) at Walmart and there wasn't any new figures... just peg warmers on the shelf.   Along with this the amount of new figures put on shelves is significantly a smaller amount, only a couple of boxes at a time over the duration of a week.   Sad thing is while I do enjoy collecting and the scavenger hunt for the figure, there isn't enough to go around.  A couple of days back a hoarder walked right past me with 2 commander cody figures, 2 luke hoth figures and alternate cloud city guard figure and another one I couldn't see.  I came at the right time to get a cody figure as the last box came out and what was really messed up is that a kid (probably 6 or 7) went over to the associate in tears telling him there was  a guy who blocked him off from getting the figure he wanted and when he asked if he could get it since he had two of them, the guy grabbed the other figure he was reaching for and walked off.  They couldn't even get the guy ..... me and the kid went to go to try and catch him at the front registers while the associate called it in.  We found out later from security he went out through the gardening section .   Got conflicting stories on whether or not more figures were in the back..... associate said there were but wasn't allowed to open them, manager said there weren't anymore of the figures the kid was looking for.  Ended up giving him my commander cody as i thought this was really messed up.

Offline Phatty

  • Administrator
  • Grand Admiral
  • *
  • Posts: 7300
  • Feedback: +164/-0
  • Gender: Male
    • Imperialshipyards.net
Re: Pricing tactics in stores....
« Reply #1 on: April 24, 2010, 06:41:33 AM »
Unfortunately, all major retailers have regional buyers.  Some person sits in a cubicle and determines how much of what to order.  Hasbro is partially at fault here, pushing the Clone Wars and Legacy figures, touting these waves as "most popular" because Hasbro still believes that only Darth Vader and Luke Skywalker and R2D2 will ever sell, stating that kids buy the majority of figures, not adult collectors.  Hasbro tells Wal-Mart, Target, TRU, and others, that they need these waves if they want to turn a profit.  Therefore, the saga cases don't get bought up.  So these regional buyers buy 10 cases of Saga Legends, and when the shelves are clogged with Super Battle Droids, Plo Koons, Darth Vaders, and other figures not desired by either child or collector, the stock shows they have plenty in stock, and will not order new waves.  Waves get released by Hasbro, but not bought by retailers because they still have quite a bit of stock.

Now, the price goes up and down because (according to Hasbro), the petroleum prices fluctuate.  So when oil goes up, they jack up the prices.  Usually, the prices don't go down when oil prices do, because Hasbro has stated they go with the predicted max price of oil so as not to lose money, as if that would happen.  The reason for price drops is so that the retailers can unload stock they have taking up space in the stock room.  Once they clear out their extras, they can then put prices back where they were.  As for the sudden spike in G.I. Joes, I'm guessing it's because more of us have been buying them for customizing, so the sudden depletion in stock that had sat around for months (years?) has made these retailers think they can get more for them now.  Too bad they haven't learned that the only reason they ARE being bought like they have been is because they WERE $5.

By the way, these statements have been given by Hasbro in previous Q&As and by actual Hasbro reps seen at Wal-Mart.   

Offline dax415

  • Lieutenant
  • *
  • Posts: 192
  • Feedback: +2/-0
Re: Pricing tactics in stores....
« Reply #2 on: April 24, 2010, 08:21:49 AM »
doesn't make alot of sense to me, i know hasbro is wanting to milk the molds for their clone wars stuffs..... but these things are peg warmers.  i know this question has come up time and again about producing all the various darth vaders, r2d2's, which become peg warmers.  kids as well as big kids purchase cool figures, if by now hasbro hasn't figured out which figures should be produced x3 to a wave, they need to start firing people in this department and hire one or better yet, several of us yarders to get their act together. 

Offline zedhatch

  • Commodore
  • *
  • Posts: 807
  • Feedback: +1/-0
Re: Pricing tactics in stores....
« Reply #3 on: April 24, 2010, 11:46:26 AM »
Unfortunately, all major retailers have regional buyers.  Some person sits in a cubicle and determines how much of what to order.  Hasbro is partially at fault here, pushing the Clone Wars and Legacy figures, touting these waves as "most popular" because Hasbro still believes that only Darth Vader and Luke Skywalker and R2D2 will ever sell, stating that kids buy the majority of figures, not adult collectors.  Hasbro tells Wal-Mart, Target, TRU, and others, that they need these waves if they want to turn a profit.  Therefore, the saga cases don't get bought up.  So these regional buyers buy 10 cases of Saga Legends, and when the shelves are clogged with Super Battle Droids, Plo Koons, Darth Vaders, and other figures not desired by either child or collector, the stock shows they have plenty in stock, and will not order new waves.  Waves get released by Hasbro, but not bought by retailers because they still have quite a bit of stock.

You just confused me cause one minute you say Hasbro pushes Legacy but retailers buy Legends, isn't it Legends they are pushing since there are so many ont he shelves, or is there something you are leaving out. 

Now, the price goes up and down because (according to Hasbro), the petroleum prices fluctuate.  So when oil goes up, they jack up the prices.  Usually, the prices don't go down when oil prices do, because Hasbro has stated they go with the predicted max price of oil so as not to lose money, as if that would happen.  The reason for price drops is so that the retailers can unload stock they have taking up space in the stock room.  Once they clear out their extras, they can then put prices back where they were.  As for the sudden spike in G.I. Joes, I'm guessing it's because more of us have been buying them for customizing, so the sudden depletion in stock that had sat around for months (years?) has made these retailers think they can get more for them now.  Too bad they haven't learned that the only reason they ARE being bought like they have been is because they WERE $5.

Hasbor long ago abandoned the "oil" excuse when prices of oil plumited and the prices of toys skyrocketed.  I believe it was in one of the GI Joe Q&A's at the time they said basicly that there were many facotrs that effected prices and they didn't have the time to explain, one of the most rude comments I have ever seen on one of thier q&A's.

As for the price increace on Joes, everything I have read says that is a retailer desision purly.  They are the ones that brought the prices down in the first place when they weren't selling.  The joe line (like the SW line) is on hiatus until august.  What reasoning they have for putting the price back up is beyond me. 

The spike in Joe sales have been since the rollbacks and reductions, Just needed to watch the stock to see thatone.   

Quote
By the way, these statements have been given by Hasbro in previous Q&As and by actual Hasbro reps seen at Wal-Mart.   

Same here, its interesting when you watch the different Q&A's like Marvel TF and GI Joe cause you get conflicting info.  However the CEO of Hasbro did say they put out the GI Joe Rise of Cobra figures at too high a price and that they should have been lowered, I found it interesting cause his statement almost implyed they jaked up the price just cause they thought they could. 

Updates Mon-Fri every week, also reviews and much much more.

Offline Phatty

  • Administrator
  • Grand Admiral
  • *
  • Posts: 7300
  • Feedback: +164/-0
  • Gender: Male
    • Imperialshipyards.net
Re: Pricing tactics in stores....
« Reply #4 on: April 24, 2010, 01:52:03 PM »
My bad, I meant Legends, not Legacy.

Offline dax415

  • Lieutenant
  • *
  • Posts: 192
  • Feedback: +2/-0
Re: Pricing tactics in stores....
« Reply #5 on: April 25, 2010, 10:10:02 AM »
"Same here, its interesting when you watch the different Q&A's like Marvel TF and GI Joe cause you get conflicting info.  However the CEO of Hasbro did say they put out the GI Joe Rise of Cobra figures at too high a price and that they should have been lowered, I found it interesting cause his statement almost implyed they jaked up the price just cause they thought they could. "

    Not that I would have the surefire answers on how or why hasbro should market their toys, I don't understand their "answers" for their marketing strategy.  I can see them wanting to break new ground by trying to make toys to support/compliment the animated series, but considering the first run of these style of figures were a flop I'm surprised they tried again.  If they did figures legacy style with the cool accessories and themes from the animated series they could have milked the molds from previous releases and done so because it would have gotten alot of support and continuity from an established line.  As for pricing and improving their star wars figures, there is no excuse for the figures being above the $5-$6 mark.  If the 25th anniversary G.I. Joe line can reach that mark without problem, their is no excuse for star wars figures to not have the same quality in poseability.  The only real thing holding hasbro back from making more money and customer satisfaction is the poor decision making and interpretation of their sales.  Retailers share this responsibility equally as well, why purchase figures that aren't going to sell?   They need to insist on the cherry picking rather than just accept whatever is in a "wave".   I think both sides completely miss the boat on how to interpret  their sales -  kids&parents, big kids&customizers, and last but not least hoarders/speculators.  I'm under the impression out of pure greed they want to only see what the speculators can do for them rather than the reality of what their base customers are willing to pay and for what they are willing to buy.....  sort of the same silly mentality that most car dealers have when you walk into their show rooms for a car (that your money already belongs to them and you'll get whatever they want to sell you at whatever price they want to give you).  If hasbro really wants to tap into a new market, they should offer unaasselmbled figures without patint application to cusomizers and or painted unassembled versions to save on costs and explore it by selling them on their own website.  Price point of $4, cheaper than a fully assembled figure that way you can also gauge how  popular a character is and adjust to make  more figures or  variants.  the point would be sustainablility of sales rather than how much to jack up the price.