Wal Mart % Mark-up

Discussion in 'Transformers Toy Discussion' started by bellpeppers, Aug 21, 2012.

  1. bellpeppers

    bellpeppers A Meat Popsicle

    Joined:
    Oct 16, 2008
    Posts:
    15,003
    News Credits:
    10
    Trophy Points:
    302
    Likes:
    +1,587
    This is probably for American shoppers/buyers/collectors. Doubt that it's relevant outside the US. Besides- not interested in any international pissing matches.

    Just an educational FYI.

    My location is the California Central Valley, and regions may vary.

    I priced Weaponizers Optimus and BB- $32 and some change. I grabbed a Gemini and scanned it- %30 markup.

    This made me raise my eyebrows and comment "hmm" to myself.

    So I grabbed FoC Optimus- $15.37... with a markup of 41%.

    Wow.
    Now, I'm all for profit... and I guess they believe that they need to profit that much to keep people employed and the lights turned on.

    A little background info from my region- the city closest to me is the largest city in the US to go bankrupt, and is among the worst nationwide to take a hit from the housing bubble. Unemployment is also pretty high.

    I can't imagine that Target would be much different. Kinda curious about TRU.

    Why bring this up? In the myriad of TF Cost threads blame is thrown around: Hasbro's greed, retailer's greed, the economy / inflation / value of the dollar... etc.

    I just wanted to add a little food for thought.
     
  2. jerminator

    jerminator Well-Known Member

    Joined:
    Sep 27, 2007
    Posts:
    1,437
    News Credits:
    1
    Trophy Points:
    142
    Likes:
    +18
    Ebay:
    Facebook:
    Twitter:
    Instagram:
    At the risk of looking foolish, wtf is a Gemini?
     
  3. moreprimeland

    moreprimeland Optimus told me to do it! Moderator TFW2005 Supporter

    Joined:
    Feb 2, 2009
    Posts:
    24,021
    News Credits:
    38
    Trophy Points:
    352
    Location:
    Tennessee
    Likes:
    +988
    Well, many European cities have a Wal-Mart. I've been to quite a few of them. :) 

    Anyway, just checking...do you mean FOC Optimus?

    Also, if you can still get him for $15.37, good for you!! In my area of TN, the prices have been changed to $16 and change. WM is more expensive than TRU at the moment, who had them around $14 and change. WTHeck?

    Haven't seen the Weaponizers yet around here, so no idea.
     
  4. Erland

    Erland Well-Known Member

    Joined:
    Jan 30, 2012
    Posts:
    3,982
    News Credits:
    2
    Trophy Points:
    187
    Likes:
    +50
    I'm in Virginia Beach, VA and I just bought FOC Jazz and Optimus for $15.37 a piece for them.
     
  5. bellpeppers

    bellpeppers A Meat Popsicle

    Joined:
    Oct 16, 2008
    Posts:
    15,003
    News Credits:
    10
    Trophy Points:
    302
    Likes:
    +1,587
    A handheld terminal used for inventory, pricing, etc.

    Oops- FoC Optimus.
     
  6. barrelks

    barrelks Captain Funtastic

    Joined:
    Apr 20, 2008
    Posts:
    9,282
    News Credits:
    3
    Trophy Points:
    227
    Likes:
    +140
    I would guess that the markup you found is just on their cost of the toy. Walmart (and most retailers) run pretty small margins when you factor in employee costs, leases, insurance, etc, etc, etc. It is like when my buddys always say they want to buy a bar and say, "you can buy a 12-pack of beer for $12 and sell them for $3.50 per bottle, that is a $2.50 profit on every beer you sell." There is a reason that almost any bar you go in can be bought on the spot for a relatively cheap price. After rent, employee costs, electricity, insurance, employee theft, etc most of that $2.50 "profit" is gone.
     
  7. xMostWanted559x

    xMostWanted559x Well-Known Member

    Joined:
    Jul 23, 2012
    Posts:
    9,622
    Trophy Points:
    197
    Likes:
    +5
    What part of central cal
     
  8. trdkamuri51o

    trdkamuri51o Well-Known Member

    Joined:
    Apr 7, 2012
    Posts:
    706
    News Credits:
    2
    Trophy Points:
    101
    Likes:
    +3
    Ebay:
    my guess is he is in lodi or manteca.. since they are next door to stockton the worse city for forclosure/high crime in california..

    its not that high of markup when you consider this:

    hasbro raised their MSRP to 14.99 given a .38 cent mark up its no where near that 41% you see..

    fact is we want jobs here: we want production here: we want we want we want but arent willing to pay the price that we ask for that product to be made..
     
  9. Apoclatron5675

    Apoclatron5675 Well-Known Member

    Joined:
    Jul 14, 2010
    Posts:
    833
    News Credits:
    1
    Trophy Points:
    116
    Likes:
    +1
    Target's cheaper than Wal-mart.... by Primus the end is nigh
     
  10. stepsongrapes

    stepsongrapes Well-Known Member

    Joined:
    Jul 28, 2010
    Posts:
    557
    Trophy Points:
    117
    Likes:
    +3
    MSRP does not equal cost to the retailer. You can't tell the amount of the mark-up from MSRP alone because we don't know how much recommended retailer profit Hasbro builds into its MSRP.

    As others have said, we don't know if the 41% markup is over item cost alone or whether it already accounts for overhead and therefore represents pure "profit".
     
  11. Grimwing

    Grimwing Scientist Supreme

    Joined:
    Jun 1, 2007
    Posts:
    4,963
    News Credits:
    3
    Trophy Points:
    207
    Likes:
    +8
    I've been thinking that since its happened so suddenly its probably just Hasbros buffer for the retailers price cutting around the Holidays. From what I understand is that at toyfair retailer ordering people meet with Hasbro and bid on what they can pay for their millions of units. the price you pay at retail is the stores profit margin on the product plus what they paid for the unit. Basic economics.

    Its just that when I think back to all the bulk clearance deals other Holiday seasons have done. $7 generations Sky shadow, $20 Animated leader Bulkhead and $11 universe Ultra Stormcloud a few years ago. Its hard for me to see if the profit margin is hanging in there or if there is a loss going on. If not by the retailers, than by Hasbro's manufacturing expenses. Which is what forces them to operate with sweatshop chinese manufacturing.

    Hasbrotoyshop has the fall of cybertron deluxes for $11.99 while the prime deluxes have been raised to $14.99

    meanwhile all the other retailers raised the prices on all deluxes to around $15
    I wag my finger at that. Retailer shenanigans.

    It really would'nt be to bad to have this price increase if they weren't being so experimental right now in the line as I would be more willing to pay this price increase for something of the quality of 2010 deluxes.
     
    Last edited: Aug 21, 2012
  12. bellpeppers

    bellpeppers A Meat Popsicle

    Joined:
    Oct 16, 2008
    Posts:
    15,003
    News Credits:
    10
    Trophy Points:
    302
    Likes:
    +1,587
    Yup- that's where I am at.

    Right.

    I'm thinking that the price we pay is the 41% over what the store pays, and that 41% is the profit that the store needs to operate on.

    And then during Christmas, they lower- "roll back"- the price to a lower % and profit off of volume.

    That's my guess at least.
     
  13. Autobus Prime

    Autobus Prime Transit Former

    Joined:
    Jun 7, 2005
    Posts:
    8,682
    Trophy Points:
    227
    Likes:
    +17
    Well, this is interesting, because that markup is very high for a Dx.

    On ATT, we used to have posters who regularly discussed Waruimart's wholesale cost. For example, this was posted during movie 1:

    A year later, we did see higher markups, almost as high as this 41%.

     
  14. Jazz342

    Jazz342 Well-Known Member

    Joined:
    Feb 11, 2010
    Posts:
    2,083
    Trophy Points:
    167
    Likes:
    +2
    I just hope the economy turns around soon. It sucks seeing the stuff you want only to find they are priced higher than you are willing to pay, quality is below accepted levels, lack of sales causes lines or particular toys to be cancelled ...
    You can't really blame a corporation for making adjustments in order to stay afloat.
     
  15. bellpeppers

    bellpeppers A Meat Popsicle

    Joined:
    Oct 16, 2008
    Posts:
    15,003
    News Credits:
    10
    Trophy Points:
    302
    Likes:
    +1,587
    And I for one don't blame them.
    However, I do hope the economy improves, along with my willingness to get something.
     
  16. Cracka J

    Cracka J TURD PARTY DUMPSTERPIECE TFW2005 Supporter

    Joined:
    Jun 30, 2009
    Posts:
    10,619
    News Credits:
    1
    Trophy Points:
    307
    Likes:
    +428
    The second part there is really the key for me. I wouldn't have a problem paying a bit of the markup for the generations toys we were getting a year ago. That stuff was fantastic and absolutely worth $15 a toy to me.

    FOC and TFP stuff? Shockwave is an exception, but the rest? Not so much. I'm completely content not buying anything then spending the markup price to complete these lines. At $13 a pop I'd still be tempted, but for a couple bucks more, they are not worth that to me. Voyagers definitely seems like the most bang for your buck atm.
     
  17. Maetel

    Maetel Well-Known Member

    Joined:
    Aug 19, 2006
    Posts:
    1,001
    Trophy Points:
    161
    Likes:
    +1
    at least the foc shockwave are aplenty at $15+ a pop for those that want it and at $15 the scalpers are left with very thin margins if any, i doubt people are willing to pay $25-30 for foc shockwave.
     
  18. Tripredacus

    Tripredacus K-Mart-ian Legend

    Joined:
    Nov 11, 2002
    Posts:
    2,335
    News Credits:
    2
    Trophy Points:
    202
    Likes:
    +5
    MSRP is a way for the Manufacturer to sell their product to the retailer or reseller. It allows the retailer to see what the profit margin is on the product. If the MSRP has gone up but the cost has remained the same, this would likely mean that the manufacturer is seeing a drop in orders. So raising the MSRP is more incentive for the retailer to purchase the product.
     
  19. siamese goat

    siamese goat Hellstomper

    Joined:
    Jun 2, 2009
    Posts:
    54
    Trophy Points:
    46
    Location:
    Mountains of TN
    Likes:
    +0
    Not sure what is common for retail mark up been a looooong time since i did that. In the Hot Rod biz our mark up is usually 30% over cost. Small hot rod shop with overhead, inventory, marketing. etc.....
     
  20. xMostWanted559x

    xMostWanted559x Well-Known Member

    Joined:
    Jul 23, 2012
    Posts:
    9,622
    Trophy Points:
    197
    Likes:
    +5
    Is the foc voyagers going to be 30 bucks?
     

Share This Page