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03-13-2009, 12:42 AM | #1 |
Tactical Viper
Join Date: Mar 2009
Location: Des Moines, Iowa
Posts: 306
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I always wondered why most online places seemed to want more for the new stuff then retail or bigger toy sites. I always thought that they were just price gouging rich collectors that were willing to pay the higher prices.
My family owns a business that does stuff in my state and north carolina, so i thought i'd try and get something going through them and see if i can turn a profit through individual figure sales. First off I try Hasbro directly. $5000 minimum initial order every year. I was like WOW.. ok thats about twice what i have to to spend. Then the recording goes on to say 'or you can go through one of our distributors' and then tells me a brief list. I write them down and intended to spend the next day figuring this out. All i can tell you is something is very wrong with these distributors that Hasbro 'recommends'. Both places ended up wanting almost retail even in a business to business sale. To buy stuff through them it starts off like 10% discount off retail with a sliding scale that can get up to 20% after like 10 cases. Which ends up being like 20% a $1000 - $2000 dollar order. Then you have shipping from the distributor, which would roughly be 10 to 15% of the entire order plus handling fees per case. You are left with a 10% profit margin if you try competing with the likes of Entertainment Earth, Smalljoes.com or even retail outlets. Then you have to worry about selling maybe 30% of your merchandise at rock bottom prices just to move them (like the Wild Bills and Cobra Commanders that no one wants). How can any small company survive on a 10% profit margin? It seems to me this whole 'distributor' thing is a joke. Its like lip service to the whole distributor idea just so they can say "yes we do it". Makes me respect outlets like smalljoes.com (for the most part) and great kudos to retail places like TARGET and Toys R Us that seem to offer them at decent prices.
__________________
Quote:
Originally Posted by Gamble
Making a mold shouldn't be a factor in price.
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03-13-2009, 12:49 AM | #2 |
JOE Shockwave Trooper
Join Date: Apr 2008
Location: San Antonio, Texas
Posts: 51
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I feel your pain, man. If you're not BBTS or EE or sj.com then selling collectibles is basically a labor of love. It is also very time-consuming and without a full-time commitment or multiple people working towards the same goal it can be daunting. It can take 3 to 5 years for a reseller of collectibles to turn a profit. Sad fact. You have to really really want to do it and be 1000% commited.
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03-13-2009, 12:49 AM | #3 |
Alley Viper
Join Date: Jun 2008
Location: Cicero IL
Posts: 957
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Quote:
I always wondered why most online places seemed to want more for the new stuff then retail or bigger toy sites. I always thought that they were just price gouging rich collectors that were willing to pay the higher prices.
My family owns a business that does stuff in my state and north carolina, so i thought i'd try and get something going through them and see if i can turn a profit through individual figure sales. First off I try Hasbro directly. $5000 minimum initial order every year. I was like WOW.. ok thats about twice what i have to to spend. Then the recording goes on to say 'or you can go through one of our distributors' and then tells me a brief list. I write them down and intended to spend the next day figuring this out. All i can tell you is something is very wrong with these distributors that Hasbro 'recommends'. Both places ended up wanting almost retail even in a business to business sale. To buy stuff through them it starts off like 10% discount off retail with a sliding scale that can get up to 20% after like 10 cases. Which ends up being like 20% a $1000 - $2000 dollar order. Then you have shipping from the distributor, which would roughly be 10 to 15% of the entire order plus handling fees per case. You are left with a 10% profit margin if you try competing with the likes of Entertainment Earth, Smalljoes.com or even retail outlets. Then you have to worry about selling maybe 30% of your merchandise at rock bottom prices just to move them (like the Wild Bills and Cobra Commanders that no one wants). How can any small company survive on a 10% profit margin? It seems to me this whole 'distributor' thing is a joke. Its like lip service to the whole distributor idea just so they can say "yes we do it". Makes me respect outlets like smalljoes.com (for the most part) and great kudos to retail places like TARGET and Toys R Us that seem to offer them at decent prices.
__________________
Solomon Grundy,Born on a Monday ... |
03-13-2009, 01:07 AM | #4 |
Snake Eyes' Daddy
Join Date: Aug 2008
Location: Kennesaw, GA
Posts: 3,287
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screw Hasbro, one day I will make better toys than anything that is out right now.
__________________
"Fierce Krypton is as smooth as a Cold, Crisp Colt 45 Malt! He works every time!!!" |
03-13-2009, 01:23 AM | #5 |
JOE Shockwave Trooper
Join Date: Apr 2008
Location: San Antonio, Texas
Posts: 51
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Make them out of delicious, edible materials like the "gummy G.I. Joe the Movie candy" I'm sure that they will make.
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03-13-2009, 01:32 AM | #6 |
Tactical Viper
Join Date: Mar 2009
Location: Des Moines, Iowa
Posts: 306
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What gets me. Even some of Hasbro's 'preferred distributors' are selling the hot items and army builders at higher prices then retail.
I think Hasbro really needs to rethink its partnerships.
__________________
Quote:
Originally Posted by Gamble
Making a mold shouldn't be a factor in price.
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03-13-2009, 01:34 AM | #7 |
JOE Shockwave Trooper
Join Date: Apr 2008
Location: San Antonio, Texas
Posts: 51
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You should look into buying direct from Asia like BBTS
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03-13-2009, 01:39 AM | #8 |
Tactical Viper
Join Date: Mar 2009
Location: Des Moines, Iowa
Posts: 306
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I did exactly that after you mentioned it. Then came across this
"In 2002 Hasbro was fined $7.9 million by the United Kingdom Office of Fair Trading for price fixing by setting prices on toys and games with wholesale distributors. A second charge of price fixing with retailers was dropped after the company cooperated with the investigation. Source: The Office of Fair Trading" Hasbro, Inc - Knowmore.org. I know thats been a few years ago, but if the same thing has been going on over here, no one has ever questioned them and may be still on going.
__________________
Quote:
Originally Posted by Gamble
Making a mold shouldn't be a factor in price.
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