• Hasbro Counting on Price Hikes to Offset Costs

      Attachment 24522Hasbro Inc, the No. 2 U.S. toy company, is counting on price increases to combat rising costs of commodities, freight and labor.

      The company, which hiked prices by mid-single digits this month, said it will monitor the cost environment closely to see if it has to raise prices again before fall, CFO Deborah Thomas told investors ahead of the toy fair in New York.

      Larger rival Mattel Inc on Feb. 2 also said rising costs of oil and Chinese labor would entail price increases in 2011.

      Manufacturers of everything from food to soap to appliances are grappling with rising costs of metals, plastics, packaging paper and labor costs in manufacturing hubs such as China. Many are raising prices to pass the costs to customers, but industry experts worry if the price hikes will stick in a slowly recovering economy.

      Hasbro, the maker of Nerf foam toys and Monopoly board games, is planning for labor rates to rise in the mid-teens in 2011. However it does not see overall costs rising as much as they did last year.

      Hasbro missed sales estimates in the key fourth quarter on tepid U.S. demand for games and puzzles. The company has forecast a rise in sales and profits in 2011 citing a strong entertainment lineup for 2011, including toys modeled after the movie "Transformers -- Dark of the Moon."

      Its shares were down 0.5 percent or 22 cents at $45.47 on Friday morning on Nasdaq. (Reporting by Dhanya Skariachan; Editing by Phil Berlowitz)

      Source: Reuters
      Buy the hottest collectibles from: BigBadToyStore.com and BriansToys.com.


      Comments 3 Comments
      1. JediTricks's Avatar
        JediTricks -
        "Sales are down, so how do we combat? Raise prices!"

        That is one business decision I've never agreed with. Look at Sideshow, they've been doing that for years now and every figure gets more expensive and more exclusive to try to offset how expensive they are. It's a downward spiral, to offset you charge more, but when you charge more your sales dry up, so to offset the weakened sales you charge more, rinse, lather, repeat.

        Pushing $9 a pop for TVC figures and $8 for CW at my local stores is making this hobby difficult to continue in. The figures just aren't worth it anymore, too many repetitive rehashes that don't address the biggest issues (like no good Han Solo figures, or figures that can't stand not having ankle articulation, or lack of accessories).
      1. El Chuxter's Avatar
        El Chuxter -
        It's even worse if you collect multiple Hasbro lines. They're making me be more selective. Collecting hasn't hit the "hardship" point, but it's definitely expensive enough where the entire "impulse buy" aspect is gone.
      1. JediTricks's Avatar
        JediTricks -
        Quote Originally Posted by El Chuxter View Post
        It's even worse if you collect multiple Hasbro lines. They're making me be more selective. Collecting hasn't hit the "hardship" point, but it's definitely expensive enough where the entire "impulse buy" aspect is gone.
        So true. I also collect Transformers, and the basic figures are now up to $10 at most stores, while those same stores are selling deluxe figures for sometimes $9 simply to sell through the most popular product faster. But where I'd be more free to buy basics I wasn't sure about, now I'm selective, and that subconsciously seems to be slowing my Deluxe purchases even when they're lower price.
    • Recent Forum Posts

      Tycho

      Star Wars: The Clone Wars w/ "The Lost Missions" on Netflix - March 7th!

      In season 6 of Clone Wars Anakin did not react to Ahsoka leaving. Also Tup died passing the message about the order 66 programming in the Clones and in

      Tycho 6 Hours Ago Go to last post
      Tycho

      L.A. area Just Found

      I found LC Starscream at a Target but left him.

      The CW correction looks very nice but I'm only in the game 4 two more leader class figures

      Tycho 6 Hours Ago Go to last post
      Bel-Cam Jos

      MLB 2016 - starting with winter trades!

      Pirates are heating up! Let's go Buccs!

      Bel-Cam Jos 9 Hours Ago Go to last post
      Bel-Cam Jos

      Vacation

      This could actually have been the last photo I ever took... when they warn you about moving water (cold water, too) in national parks being unsafe; follow

      Bel-Cam Jos 9 Hours Ago Go to last post
      Bel-Cam Jos

      Would you like Star Wars figures of famous bands?

      Led Zutton?

      The Beados?

      They Might Be Jawas?

      Let's Go BB-8ing?

      NWA (Nightsistas With Attitude)?

      Bel-Cam Jos 9 Hours Ago Go to last post
      Maradona

      Star Trek Beyond: the one where Kirk wears a leg holster and Star Lord's costume

      Not exited about this film at all, but that's not new for me. I do, however, like Karl Urban as DeForest Kelley. Not sure if he's ever trying to play

      Maradona 12 Hours Ago Go to last post
      OC47151

      The "other" SW canonical fiction Thread

      Finished Moving Target. Liked it a lot. Of the three books, I'd rate Han's story #1, followed by Leia's and Luke's.

      OC47151 12 Hours Ago Go to last post
      OC47151

      SW Celebration 2017

      You ain't kidding.

      Got my tix, too. Won't start working on finding cheap ariline tix until Christmas.

      OC47151 12 Hours Ago Go to last post
      JEDIpartner

      SW Celebration 2017

      I'm there!

      By the way... I hope our key are is as nice as the key art for Celebration Europe.

      JEDIpartner 19 Hours Ago Go to last post
      JediTricks

      Star Trek Beyond: the one where Kirk wears a leg holster and Star Lord's costume

      Not Netflix, or tv, or something where you don't have to fear the shame of someone seeing it on your shelf?

      I don't think there's a trailer

      JediTricks 19 Hours Ago Go to last post
    Single Sign On provided by vBSSO