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Thread: Cost to consumer question/thoughts?

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    Cost to consumer question/thoughts?

    So I got Spirit of Hordak, and realized he was $25, but when I see that our monthly figs are running $27 it had me wondering if about the cost of figures.

    I've read in the past that Mattel can only account for so many items to come based on the prices of figure. S.o.H. only came with a crossbow, where as Prince Adam priced at $25 came with Orko, a clear stand, a book and a pink sword. Now we look at Dekkar and Karatti who come with 2 accessories but are priced higher than S.o.H.

    Wouldn't the cost of the figures production go down with less accessories?

    Just thought about this when I got S.o.H. yesterday, which I'm not impressed with and want to trade.

    Thoughts?

  2. #2
    Heroic music maker Calabeli's Avatar
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    Personally, I wouldn't give up accessories (extra weapons, heads, etc. -all of which I think are great) for a $2 price difference.
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    Heroic Warrior No-Ah's Avatar
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    Hordak had NO new sculpting, only one accessory and it was a re-paint. You can be sure the profit margin is very nice for Matty on that one.

    Then again, that margin might get tighter on some other figures which they don't raise the price for.....

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    Heroic Warrior DO4M's Avatar
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    The thing is that Mattel has 2 different Price points. Spirit of Hordak was sold at the susbcriber's price point. Day of sale customers have a higher price point. (to reward subscriber or to punish day of sale customers... depends on who you ask). While Hordak is a really cheap figure to make (no new tooling, less accessories and less paint applications), the alleged lower amount of figures made allows Mattel to claim that these figures cost $25 to make.
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    Supreme Fudge Dynamo of Eternia's Avatar
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    It's also not really accurate to compare the price that the figures are going for now to the likes of the Orko/Adam pack. That set came out for $25 back when the regular monthly figures were just $20. The costs to make these figures have gone up since then. If that set was coming out today, it would probably be $30 or higher.
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    Vintage Vintage Vintage Vlcan's Avatar
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    I think every figure made should come with all their weapons(vintage or toy color looks). If they have multiple head sculpts....make them. Paint hits....do them. If we're paying higher costs then it should be done.

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    Heroic Warrior wyldman11's Avatar
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    Normal every month figures are sold either at a loss or at a gain depending on the following factors.

    How many were actually produced, the more units made the more money the make.

    How much actually went into making the figure. The more tooling, the more painting, more accessories (specifically newly casted ones), new mold the less they make off said figure.

    How well the figure actually sales

    Spirit of Hordak is/was basically a way for Mattel to make some money off of figures they were going to lose money on or break even on. Now I doubt (aside from units not selling) mattel is at worse breaking even on some figures or just above. But they have some items put into the line to compensate for that, Spirit of Hordak, NA He-man figures that often had little to no tooling done for the figure in question.

    Non regular items have special costs, Ram-man being an example of this.
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    Heroic Warrior goluphi's Avatar
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    Quote Originally Posted by Vlcan View Post
    I think every figure made should come with all their weapons(vintage or toy color looks). If they have multiple head sculpts....make them. Paint hits....do them. If we're paying higher costs then it should be done.
    Mattel is not running a charity, the cost to produce the figures has to be enough to cover the cost AND make enough profit to justify the line's existence. They try to cram as many accessories and pant "hits" as possible. Just because you're paying a higher price doesn't mean you're always going to get everything you want. You can't expect Hot Toys quality for < $40.

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    Heroic Warrior Mad Scientist's Avatar
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    Quote Originally Posted by Thundercookie View Post
    Wouldn't the cost of the figures production go down with less accessories?
    There is a balance, may be mattel is getting less profit with Ram man since is a high tooled figure but they get more profit with SoH. If they place figures like SoH at 20 then there would be no budget for other figures, like Extendar. They even did that for the Comet warriors. The rock parts were expensive and we are going to get Trap Jaw boots again for compensation. This is not the best system but seems to work. If we ask to lower the prices then they are going to make less tooled figures and that is not good.

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    Assimilate, or else!! krosfyah's Avatar
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    Quote Originally Posted by goluphi View Post
    Mattel is not running a charity, the cost to produce the figures has to be enough to cover the cost AND make enough profit to justify the line's existence. They try to cram as many accessories and pant "hits" as possible. Just because you're paying a higher price doesn't mean you're always going to get everything you want. You can't expect Hot Toys quality for < $40.
    I can guarantee that Mattel makes a profit on each figure sold and that profit is at LEAST 100% the cost of the figure to get made.(example it costs them $12.50 to make each figure considering economy of scale and they mark it up to $25) now here is the thing, the bucks are mostly paid for, so that cost per figure diminishes each time they reuse a mold, with each multipack of army builders, the cost goes down even lower, but the prices don't. we pay for TWO or THREE SINGLE figures when we buy the multipacks, we don't get a discount on army builders even though it costs mattel less per figure to make them (including packaging costs) so no they aren't running a charity, but they ARE running a business and as such they are set up to make a profit on each sale and it's costed out so that unless a figure is a huge disappointment, even with left overs they have made money. that profit may be small in terms of volume compared to barbie or hot wheels, but it's likely a profit at the same if not greater percentage (no advertising, no retailers middlemen etc.)
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    Quote Originally Posted by krosfyah View Post
    I can guarantee that Mattel makes a profit on each figure sold and that profit is at LEAST 100% the cost of the figure to get made.(example it costs them $12.50 to make each figure considering economy of scale and they mark it up to $25) now here is the thing, the bucks are mostly paid for, so that cost per figure diminishes each time they reuse a mold, with each multipack of army builders, the cost goes down even lower, but the prices don't. we pay for TWO or THREE SINGLE figures when we buy the multipacks, we don't get a discount on army builders even though it costs mattel less per figure to make them (including packaging costs) so no they aren't running a charity, but they ARE running a business and as such they are set up to make a profit on each sale and it's costed out so that unless a figure is a huge disappointment, even with left overs they have made money. that profit may be small in terms of volume compared to barbie or hot wheels, but it's likely a profit at the same if not greater percentage (no advertising, no retailers middlemen etc.)
    Don't forget-they're charging $27 for leftover customer service stock of figures that were originally $20, so they're making a 35% profit on those figures. Mattel (if they're telling the truth) haven't done new production runs on those figures since the new price points went into effect. Basically, they're ripping you off if you missed on the figures before they raised the prices.
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    Quote Originally Posted by vancak View Post
    Don't forget-they're charging $27 for leftover customer service stock of figures that were originally $20, so they're making a 35% profit on those figures. Mattel (if they're telling the truth) haven't done new production runs on those figures since the new price points went into effect. Basically, they're ripping you off if you missed on the figures before they raised the prices.
    That extra price isn't all profit. If Mattel has to pay for warehouse space, then their profit margin gets lower every month/quarter/year (depending on their contract) that they don't move that inventory.

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    Quote Originally Posted by Mad Scientist View Post
    There is a balance, may be mattel is getting less profit with Ram man since is a high tooled figure but they get more profit with SoH. If they place figures like SoH at 20 then there would be no budget for other figures, like Extendar. They even did that for the Comet warriors. The rock parts were expensive and we are going to get Trap Jaw boots again for compensation. This is not the best system but seems to work. If we ask to lower the prices then they are going to make less tooled figures and that is not good.
    Exactly. They've always says they have an overall budget for the year. Guys like Snake Man At Arms save money to be used on ones like Mantenna and Shadow Weaver.
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    Vintage Vintage Vintage Vlcan's Avatar
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    Quote Originally Posted by goluphi View Post
    Mattel is not running a charity, the cost to produce the figures has to be enough to cover the cost AND make enough profit to justify the line's existence. They try to cram as many accessories and pant "hits" as possible. Just because you're paying a higher price doesn't mean you're always going to get everything you want. You can't expect Hot Toys quality for < $40.
    Thanks for the education. All I'm saying is raise the cost in which this could happen then.....$40,$50ect ect. I'd pay these prices. Most people won't....so they're stretching our wallets the most in which the consumer will pay for the same stuff we paid $20 back in 2008. don't get me wrong. There have been many great figures with all the necessities. But we also have a few let downs as well.
    Last edited by Vlcan; May 21, 2013 at 04:08pm.

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    Heroic Warrior goluphi's Avatar
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    Quote Originally Posted by Vlcan View Post
    Thanks for the education. All I'm saying is raise the cost in which this could happen then.....$40,$50ect ect. I'd pay these prices. Most people won't....so they're stretching our wallets the most in which the consumer will pay for the same stuff we paid $20 back in 2008. don't get me wrong. There have been many great figures with all the necessities. But we also have a few let downs as well.
    I agree, I would also pay extra for figures with more features or bigger, for example, Ram Man. But, I expect that sometimes features WILL be cut at the current price point, even with figures like SoH to help offset the costs.

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