• 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

      El Chuxter

      What are you listening to? (merged)

      REM's Monster. Forgot what an underrated masterpiece this is.

      El Chuxter 4 Hours Ago Go to last post
      OC47151

      Reading!

      Homeland: Carrie's Run by Andrew Kaplan. A stand-alone Homeland novel that takes place before the TV show. A fast-paced read.

      OC47151 11 Hours Ago Go to last post
      JediTricks

      What have you watched recently?

      Crime Zone (1989) - Sherilyn Fenn and David Carradine are the big names in this sci-fi turkey that feels like a well-decorated student film. Carradine

      JediTricks 12 Hours Ago Go to last post
      JediTricks

      How is the weather by you today?

      77 and clear skies at the beginning of a cooling trend. Humidity is 62% right now tho, so it's not as lightweight as it could be.

      JediTricks 12 Hours Ago Go to last post
      JediTricks

      L.A. area Just Found

      Culver City TRU had a lot of TBS 6" Kylo Ren, a couple Snowtroopers and Phasmas, some Hot Wheels Wicket and Ackbar cars as well as the newest wave

      JediTricks 12 Hours Ago Go to last post
      Bel-Cam Jos

      MLB 2016 - starting with winter trades!

      We're movin' on up: cheapest here is now $2.54, but most are just under $3. And Pittsburgh is 5-5 in its last ten games; much better than losing 13

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

      Fan made replicas and helmets

      Cool list JKNO, thanks for sharing!

      JimJamBonds 20 Hours Ago Go to last post
      JimJamBonds

      What are you listening to? (merged)

      Ace Of Spades ~ Motorhead. Because sometimes some Lemmy is what you need.

      JimJamBonds 20 Hours Ago Go to last post
      Tycho

      Turn : Washington's Spies

      By the way Heather Lind who plays Anna strong is totally hot

      Tycho 22 Hours Ago Go to last post
      Tycho

      Turn : Washington's Spies

      I just finished the third season that was live on TV. Holly molly! I can't believe who hung!

      I won't post spoilers unless if everyone's caught

      Tycho 22 Hours Ago Go to last post
    Single Sign On provided by vBSSO