[Snowflakian]

Quote:

Originally Posted by FelixTheCatt

Can't see this line continuing myself. They had to have lost a bit of money as most of these sold as discounts. Too bad , personally I love the 12" series.

Doesn't work that way. (On Hasbro's end at least.)
Discount stores buy in bulk and sometimes companies take a loss there for unloading excess supply that's clogging warehouses. Unless those discount stores buy stuff in bulk from another store's warehouse of material that's not moving and the retail chain wants to unload it fast in favor of new material they can charge better for to make a profit. Both can happen, it varies per instance or item in question.

Normal retail or other retail chains though pay full price orders that's negotiated by Hasbro. Whatever that store puts on sale or discounts, Hasbro still got paid in full for the retailer orders for their own profits. So it's the retail chain that takes the loss, not Hasbro. Though too much of a loss in that way, and the retail chain won't order more, which means hasbro won't make more since no retailers will buy it to carry it.

But a store having an item on sale or discounted or clearanced out isn't Hasbro taking the sales hit, it's that store that is, unless it's HTS itself.

The same is true for promotional items like the Ollie's Trypticon supply was from Ollie's budget. Not Hasbro's. Hasbro didn't take a sales hit there. Ollie's did and had it pushed under their marketing budget as it was a means to get people to their stores and to know where their stores are to increase foot traffic and future sales. (What normally happens at least. Though usually also involves a discounted price because of a bulk deal.)

What we buy at store shelves goes to the store for them to make a profit, Hasbro already made their profit by the store ordering it to put on shelves. Except for Toys R Us where Hasbro took a major hit because TRU was putting such stocking/warehouse orders on credit. Which was why their already extreme debt was never decreasing. So when TRU went belly up, that debt means that bill never got paid, so Hasbro did have a major loss on revenues from that(plus money they spent to try and help TRU get back on their feet).

The other thing to keep in mind is that MSRP isn't directly cost to make something. It's the recommend shelf price as a percentage over cost of what retailers pay for it for them to profit(what the manufacturer is recommending the retailer sell it for to make a profit), What retailers pay for it is also a percentage over production cost for Hasbro to profit off of it. So some sale prices really only lower the item's profit percentage at the retail level. Then clearanced varies but lowers that profit percentage more too, until over time eventually going to at cost of what retail paid, to then below cost, but at that point it's been there so long the loss is already usually recuperated from other areas and isn't noticeable. So Hasbro takes no loss on what retailers mark down. They were already paid when the store ordered it to begin with.

So without knowing full numbers, we don't know if retailers still want to carry it. That determines how much they find it beneficial or not, or if they are losing too much money on it. The sale prices could still be above what they are paying for it, so they are still turning a profit even if it's less of a profit than they had planned on initially. Some retail outlets also do things like this because it gives them eye catches that generate other profits in that same area. So it works as a means as in store standees and things on a smaller level that a consumer can purchase and other marketing reasons.

Though I agree they should do more of the Giant characters this way. Especially right now while Ant-man and Wasp are popular and other Marvel cosmic is getting stronger footings. They should look into that for some of the E-retailers at first, and then brick and mortar stores too. (E-Retailers have a lower inventory to bring new stock in faster as their orders aren't as big as Brick and Mortar that fill main warehouses that then go to regional warehouses. This is why Target and Walmart and similar are the bulk of Hasbro orders, because they buy in such large bulk for their warehouses to distribute out to other warehouses. Typically it goes Main corporate warehouse, regional warehouse, then store. With Store inventory requests sent to the regional warehouse for replenishing, and the regional warehouse ordering from the main corporate to replenish it for theirs.)