Integration

Lionheart · 02-27-2017, 04:13 PM

This is going to feel like a pile-on which I don't want - as Jackie is perfectly entitled to his opinion, and we certainly don't have all the facts. He's quite right that we can't tell which line makes what from compounded profits made up of many different lines. He's also right that pricing and distribution has undoubtedly hurt the line (along with cheaping out on what you actually get for the money).

However, as I've previously stated in this thread a long time ago, and I will repeat here:

I think 3.75 is being used to subsidise the 6 inch line by operating under the same umbrella. If a 3.75 inch figure costs $2 to make with low artic, cheap plastic, and few (if any accessories), then they sell them for $10 - that's 500% profit. If that figure then pegwarms and sells for $5 in the end - it's still 150% profit. If a 6 inch figure with better sculpt, more artic, build-a-figure, accessories and opening box costs, say, $7 to make, and they retail for $20 - that's 200% profit (roughly). If it pegwarms and sells for $10 in the end it's a 45% profit. If you add 3.75 and 6 inch together and work out the profits - 3.75 will be artificially inflating the margins, and that's even if they sell less and are discounted more. I think I'm being fairly generous here with costs, and I don't have access to the actual figures, but I believe (and always have) that Dwight is squeezing the profit margins on the line he doesn't care for to artificially inflate the profitability of the line he does. He can say the Legends line has a 400% profitability on costs. But in reality, it would be more accurate to say the 3.75 inch Marvel line has 250% profitability on costs but the 6 inch line has 150% profitability, which would then beg the question - and are the profits going back into the 3.75 inch... or 6 inch? But that won't get asked because the Legends line is one umbrella and Dwight - who is in charge - favours 6 inch, so a chunk of 3.75 inch profitability will be going to 6 inch and not vice-versa.

Those figures above are completely arbitrary, and I cite them more as an example of what I believe is happening than any actual numbers.

02-27-2017, 04:13 PM	#28107
Lionheart Join Date: Feb 2012 Location: UK Posts: 853	This is going to feel like a pile-on which I don't want - as Jackie is perfectly entitled to his opinion, and we certainly don't have all the facts. He's quite right that we can't tell which line makes what from compounded profits made up of many different lines. He's also right that pricing and distribution has undoubtedly hurt the line (along with cheaping out on what you actually get for the money). However, as I've previously stated in this thread a long time ago, and I will repeat here: I think 3.75 is being used to subsidise the 6 inch line by operating under the same umbrella. If a 3.75 inch figure costs $2 to make with low artic, cheap plastic, and few (if any accessories), then they sell them for $10 - that's 500% profit. If that figure then pegwarms and sells for $5 in the end - it's still 150% profit. If a 6 inch figure with better sculpt, more artic, build-a-figure, accessories and opening box costs, say, $7 to make, and they retail for $20 - that's 200% profit (roughly). If it pegwarms and sells for $10 in the end it's a 45% profit. If you add 3.75 and 6 inch together and work out the profits - 3.75 will be artificially inflating the margins, and that's even if they sell less and are discounted more. I think I'm being fairly generous here with costs, and I don't have access to the actual figures, but I believe (and always have) that Dwight is squeezing the profit margins on the line he doesn't care for to artificially inflate the profitability of the line he does. He can say the Legends line has a 400% profitability on costs. But in reality, it would be more accurate to say the 3.75 inch Marvel line has 250% profitability on costs but the 6 inch line has 150% profitability, which would then beg the question - and are the profits going back into the 3.75 inch... or 6 inch? But that won't get asked because the Legends line is one umbrella and Dwight - who is in charge - favours 6 inch, so a chunk of 3.75 inch profitability will be going to 6 inch and not vice-versa. Those figures above are completely arbitrary, and I cite them more as an example of what I believe is happening than any actual numbers. Last edited by Lionheart; 02-27-2017 at 04:30 PM..