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02-13-2012, 12:11 AM | #1 |
Browncoat
Join Date: Apr 2007
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I'm not sure this has ever been discussed here. If it has, feel free to merge with the old, existing topic.
In light of the 'cost cutting' being done in the Retaliation line - I started wondering - "how much DOES it cost to produce a figure"? So, for conversations sake - lets take 30th anniversary Airtight. G.I. Joe 30th Anniversary Airtight Airtight has all of the modern articulation. His body consists of 17 different parts. He also comes with 7 accessories, a rubber hose, and a figure stand. That is 26 different items that make up "Airtight". Airtight is packaged on a custom, two-sided cardback - with filecard and unique artwork. So, to produce that action figure you have: Sculpting Tooling of 24 parts Raw Materials Labor to put each figure together Graphic Design to make the cardbacks and filecards Printing of Cardbacks Packaging onto cardbacks Shipping Starts to sound like alot - for something we buy for $7.99... Can anyone fill in any of the blanks? How much do you think each of these steps cost? |
02-13-2012, 12:18 AM | #2 |
Banned
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since I can get action figures at Dollar Tree for one dollar, and using the most basic 50% mark up practice of retailers to put that toy's wholesale cost at $.50, and then giving the manufacturer a very generous 20% profit margin, that means the total design, production and manufacturing of this action figure, and thus every action figure on the market is only $.40 cents.
Hasbro is raping us! |
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02-13-2012, 12:20 AM | #3 |
Browncoat
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Quote:
since I can get action figures at Dollar Tree for one dollar, and using the most basic 50% mark up practice of retailers to put that toy's wholesale cost at $.50, and then giving the manufacturer a very generous 20% profit margin, that means the total design, production and manufacturing of this action figure, and thus every action figure on the market is only $.40 cents.
Hasbro is raping us! |
02-13-2012, 12:24 AM | #4 |
Mortal Enemy
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In one of the Q&A's Hasbro said the cost of tooling a figure is close to the price of a sports car.
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02-13-2012, 12:25 AM | #5 |
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you can actually get a very realistic deduction if you know a few basic pieces of information. Wal Mart generally works on a 50% margin, so take Wal Mart's retail price and chop it in half and you get Hasbro's wholesale price to them.
then go check out Hasbro's 10-K form. if I remember correctly, Hasbro's overall profit margin is about 18%. so, Hasbro's profit margin on action figures probably at least starts at 18% but maybe runs as high as 25-35%. but let's just use the overall 18% margin for the sake of argument and run the numbers. Wal Mart price is $7, so the wholesale is $3.50. If Hasbro profit margin is only 18%, that means of that $3.50 only $.63 cents is profit, and thus the remaining $2.87 is the cost of the figure for Hasbro. if I am wrong about any of these numbers simply replace them into the formula above and you have a pretty good guestimate that is likely in the actual ballpark. |
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02-13-2012, 12:33 AM | #6 |
Cobra Viper
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Quote:
since I can get action figures at Dollar Tree for one dollar, and using the most basic 50% mark up practice of retailers to put that toy's wholesale cost at $.50, and then giving the manufacturer a very generous 20% profit margin, that means the total design, production and manufacturing of this action figure, and thus every action figure on the market is only $.40 cents.
Hasbro is raping us! Hey gun, I know when I worked at Walmart back when the 25th came out at $4.88,the telson would show a 33% markup when joes were scanned.
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http://www.hisstank.com/forum/buy-se...-feedback.html Last edited by dawbanger; 02-13-2012 at 12:36 AM.. |
02-13-2012, 12:34 AM | #7 |
Cobra Lalalalalalalala!
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Quote:
Couple this with the ever-popular "let's count ___" threads for an idea of what a production run usually entails. I believe a minimum run is generally around 10,000 pieces of any given item, which is how Hasbro gets the production costs down by making such a large quantity.
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02-13-2012, 12:37 AM | #8 |
Browncoat
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30th anniversary had 21 figures. That means that Hasbro needed to sell about 110,000 figures to make the line break even. How many do you think they sold? Less? More? |
02-13-2012, 12:38 AM | #9 |
Hisstank.Com General
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Don't forget walmart buys in very large bulk, so they get a discounted price from Hasbro. Smaller companies like walgreens etc...get charged more and that is why they have the higher prices. Back when I worked in a little bookstore walmart was selling a movie cheaper than our company was buying them wholesale for. Walmart also has the luxury of losing money on a small item if they think it will help generate larger sales. (ok we lose 10cents on an action figure but mommy knows she can buy little timmy a toy when she goes and gets her clothes where we make $100.)
Pretty sure it costs a couple grand to get each piece tooled. You also left out the design team/phase in the calculations.
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02-13-2012, 12:40 AM | #10 |
Cobra necromancer
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Consider that Hasbro sold a lot of those 2$ modern sculpt figures at stores like Family Dollar and Dollar General for years (example: the purple and gold nightcreaper). Yea they had slightly less articulation and a lot fewer accessories but they were o-ring and Hasbro told us o-ring figures cost more to make. If they made a profit off these figures at 2$, I can't imagine even a superior ME figure like Airtight costing significantly above that
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