• 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

      Bel-Cam Jos

      G-day, mate! MLB 2014

      I said this last week, for an away series. And I mean it at home, too! Late inning losses suck worse than any other kind of losses...

      Bel-Cam Jos 5 Hours Ago Go to last post
      TeeEye7

      How is the weather by you today?

      We were promised an Easter in the 90s but so far it's only in the high 70s, sunny and breezy. I'll take that Easter egg!

      TeeEye7 9 Hours Ago Go to last post
      TeeEye7

      How did you spend your Saturday?

      Mrs. TI7 and I worked around the house, ran a few errands, I got a hair cut, we walked the dogs and later went out to dinner. Also paid WAY TOO MUCH for

      TeeEye7 9 Hours Ago Go to last post
      TeeEye7

      Midwest Earthquake

      No, sir, I did not. It's been very active "up at the Lake" as we call it (that would be the Kern Valley/Lake Isabella area directly east of

      TeeEye7 9 Hours Ago Go to last post
      TeeEye7

      Oh My Goodness!!

      $4.50/gal yesterday at the corner station. It's the most I've EVER paid for fuel.
      I thought I felt a gun in my back...

      TeeEye7 9 Hours Ago Go to last post
      bigbarada

      How did you spend your Saturday?

      I spent most of the day yesterday at work, then I was supposed to go see my coworker's band play last night at a bar in a neighboring town, but I forgot

      bigbarada 14 Hours Ago Go to last post
      Maradona

      How did you spend your Saturday?

      Went to WonderCon. Enjoyed it way more than I expected to based on the last time I attended two years ago.

      Maradona 15 Hours Ago Go to last post
      Bel-Cam Jos

      Easter Eggs (the non-DVD variety)

      As long as the soul's chocolate-covered or caramel-centered, many people do just that. You could market "Creepy Peeps" marshmallows with this

      Bel-Cam Jos 17 Hours Ago Go to last post
      sergiurusu

      Fan made replicas and helmets

      BTW did you get the scope lenses?

      sergiurusu 22 Hours Ago Go to last post
      El Chuxter

      Easter Eggs (the non-DVD variety)

      I tried to make an eyeball Easter egg. It didn't turn out well.

      So my daughter made a better one, and the reverse says, "You are creepy.

      El Chuxter 1 Day Ago Go to last post
    Single Sign On provided by vBSSO