Budget Stark - Why do Hot Toys figures cost more now, than 5 years ago.

[Bjjer]

I tend to wait now on a release for a better than MSRP deal. This is why I haven't bought MK42, Im hoping it'll be an Iron Patriot situation.

 

[Motuxmen]

The secondary market on a figure has zero impact on a company like hot toys. They get no income from Rosales. Once the figures are sold to/by the distributor that's it for hot toys.

As for limited release like peacemaker, the reason it may cost more is becuase its limited. The lower the number sold the higher price each has to be. The manufacturing cost is spread out across less sales. Resales make no difference.

These are all still limited. Even the top iron man. The large retail lines in stores make ten to a thousand times as many figures.

 

[Agentofchaos]

Great vid. I personally think the quality of the products has increased considerably too. I have no issue with the prices - nobody is forcing me to buy anything. In the end I choose what I will buy and what I'll pass because I can't afford. Plus like most ppl do I like to keep a rotating collection. More often than not the older figures appreciate in value - so no harm no foul if you play your cards right.

 

[murdomac]

The point with Peacemaker and Red Snapper is that its the same figure ones red ones orange they painted less of them orange called it limited/special and charged more it'a well established busness practice usually called 'variants' in the 6" world, all I meant was that the figure would not actually cost any more to produce.

 

[Lejuan]

I honestly don't care about the price anymore. I expect the next release to be hideously expensive and I'm almost never disappointed. Sometimes an R2-D2 or the like will come along and I'm pleasantly surprised.

 

[jstep13]

My new year resolution is to stop smoking, so i can haz more hot toys

smoke your hot toys - best of both worlds

 

[Budget Stark]

Because they can is probably largely the answer, they are the market leaders and can charge what they please.

I agree there are a lot of cost implications that lead to higher prices but I also think that once all these are taken into account companies still bung some more on, because they can.

One of the problems is good business and greed are often one and the same, for instance there is no real financial reason why a MMS mk36 Peacemaker should cost any more than a PPS Red Snapper to produce yet it can retail for £150 more, of course you can argue thats good business make it limited/special edition it's rarer, more valuable to collectors and you could also argue thats just greedy.

Also I can't say for sure for sure what the % is Hot Toys have risen in the last year but I do know my wages have't risen in the last 2 years so they look more and more expensive, I'm not complaining really it makes me much more careful what I do buy and keeps my collection in check.

If you want to use that example, the Red snapper and Peacemaker was almost identical in price in HK. DIfference is that the Red snapper every general public collector could buy it, the Peacemaker was a lottery. See one of my previous videos.

 

[Lejuan]

It's easy to forget that five years ago, medicom and Enterbay were charging then what Hot Toys does now.

 

[kiwiatlarge]

Nice vid! Prices may be higher but then so is the figure quality, case in point...

View attachment 154951

That's the whole key ingredient for me even being here.. My "typical" collecting range is fairly small. I have many low end gaming collectibles that are thrown in with Collector Edition games. They are typically cheap and not of great quality, but that's fine. they go into a cupboard or maybe on top of a bookcase, along with the steelbook cases, sew on badges, caps, bags etc which typically come in a collector edition game. There are franchises where my mind goes "I must have everything (in reason)"... Uncharted and The Last of Us of recent. Years ago I would have said GTA/Gran Turismo/FFX.. (oh how I'd kill for TLoU Media Press Kit, or Fortune Hunter Edition of Uncharted 2)

So when I came "here" that was all I was interested in. But I find myself looking at some of these Hot Toy and Sideshow creations and thinking, gee that looks really good. That Thor is a pretty good likeness of Chris Hemsworth. The John Matrix figure I have ordered is the best likeness of Arnie's face I've ever seen. I've changed to someone who is prepared to part with money for good likenesses of real actors/characters/game characters.

That Thor figure on the left, I wouldn't even consider buying it... The one on the right I "am" considering buying. I'm the same with Star Wars Lego.. I only buy the UCS series because they are a good replication of the real thing (as good as you can get in Lego for only a few hundred dollars)

 

[Y4NK33 PL4N3T]

It's easy to forget that five years ago, medicom and Enterbay were charging then what Hot Toys does now.

It's easy to forget Medicom and Enterbay.

 

[Lejuan]

It's easy to forget Medicom and Enterbay.

yup. *sniff Bruce

 

[Motuxmen]

The point with Peacemaker and Red Snapper is that its the same figure ones red ones orange they painted less of them orange called it limited/special and charged more it'a well established busness practice usually called 'variants' in the 6" world, all I meant was that the figure would not actually cost any more to produce.

If the ran it in limited numbers or smaller then the other one..yes it would cost more per unit.

If the overhead cost on each figure is equal...as your claiming. Then let's say is 400k dollars (just making up a number for illustrative purposes)...that's to make both. If they sell red snapper at 200 dollars they need to sell 2000 units. If they make peacemaker more limited, say 1500 units, then they have to charge 266 each. The overall cost is equal, but the price per unit is not. So, if one figure is a limited edition the cost even for a repaint alone would need to go up.

 

[Budget Stark]

If the ran it in limited numbers or smaller then the other one..yes it would cost more per unit.

If the overhead cost on each figure is equal...as your claiming. Then let's say is 400k dollars (just making up a number for illustrative purposes)...that's to make both. If they sell red snapper at 200 dollars they need to sell 2000 units. If they make peacemaker more limited, say 1500 units, then they have to charge 266 each. The overall cost is equal, but the price per unit is not. So, if one figure is a limited edition the cost even for a repaint alone would need to go up.

Motuxmen, I think it is clear from seeing conversations, posts and seeing how collectors think over the last few months about this particular topic, collectors are generally not really business minded or want to understand how things work. Then when it is explained, they dont believe it.

Also when you provide information, particularly from a local source, they dont believe you, so they try to create their own story with what limited information they have without incorporating other factors which actually does have an impact.

I am actually inclined to just let people who don't want to understand, let them be. If they don't want to educate themselves more, that is their business as it doesn't affect me.

 

[Motuxmen]

Motuxmen, I think it is clear from seeing conversations, posts and seeing how collectors think over the last few months about this particular topic, collectors are generally not really business minded or want to understand how things work. Then when it is explained, they dont believe it.

Also when you provide information, particularly from a local source, they dont believe you, so they try to create their own story with what limited information they have without incorporating other factors which actually does have an impact.

I am actually inclined to just let people who don't want to understand, let them be. If they don't want to educate themselves more, that is their business as it doesn't affect me.

I agree with you. And it's a good way to handle it.

For me I know when I state counter points usually the person I'm talking to won't actually ever listen or admit they are anyway. I do it more for anyone else reading. I have belonged to a few forums and what not over the years and if it was a topic I was unfamiliar with and someone stated something and no one else said anything about it, it's hard to know if that's accepted as true or is true or what. I found it most beneficial when if someone disagrees they posted something. Then I could get multiple views.

So for me, when I discuss topics with someone on here it's as much for everyone/anyone as it is who I'm actually talking to. I don't get worked up about it. But if I see something posted I either know to be or believe to be wrong I feel I should post something. On the off chance someone's reading and doesn't know. There are some people on here and other sites that spout opinion as fact and just make wild claims. If I know any different or think it's bunk I'll say something. Just be a counter point I guess. Gives another argument or perspective or view. If no one believes me or listens that fine. Not like that will crush me or anything. Lol plus, I like to debate anyway. And being a pain in the buttocks is a family trait. Come from a long line of irritating people. Lol

I appreciate you trying to educate people.

 

[Racetrack]

I've seen "tooling" mentioned a couple of times. What does that mean? Is it making the tools for the factory to produce the figure. I really don't know much about how these things are made.

It did make me think though if companies like Hasbro are spending $100,000 for tooling for each figure, might we see a day in the foreseeable when things are 3D printed to save on a lot of these costs? Once you have giant printers able to make hundreds at a time the only other cost would be ink.

 

[murdomac]

Im really sorry I don't understand or maybe I'm not bieng clear so useing your numbers it costs 400k to make 2000 figures, you sell 1500 of these (red Snapper) at 200 = 300,000 then you sell 500 of them (peacemaker) at 300 =150000 making a total of 450 000 making a cool 50,000 extra for changing the paint in the tin?

I do see how you are looking at it, as in the Peacemaker is a different run of figures, a smaller run and therefore would need to be more expensive, I just see it as all one run and just charging extra for some that are a different color.

I should say that I'm not a business person and wouldn't claim to know anything whatsoever about business.

 

[Dave_W]

Don't forget things like new packaging and promotional materials.

 

[Budget Stark]

Im really sorry I don't understand or maybe I'm not bieng clear so useing your numbers it costs 400k to make 2000 figures, you sell 1500 of these (red Snapper) at 200 = 300,000 then you sell 500 of them (peacemaker) at 300 =150000 making a total of 450 000 making a cool 50,000 extra for changing the paint in the tin?

I do see how you are looking at it, as in the Peacemaker is a different run of figures, a smaller run and therefore would need to be more expensive, I just see it as all one run and just charging extra for some that are a different color.

I should say that I'm not a business person and wouldn't claim to know anything whatsoever about business.

No, that is not the meaning. No one has mentioned USD $300 at any stage apart from you. It is purely an illustrative business model to hopefully explain the cost per figure to give you an indication.

If you dont get it, then business if probably not for you.

But here is the point that you have missed from before, Hot Toys sell the Peacemaker (lottery to buy it) at about the SAME PRICE as Red Snapper. It is the secondary market that has inflated the price.

 

[murdomac]

No, that is not the meaning. No one has mentioned USD $300 at any stage apart from you. It is purely an illustrative business model to hopefully explain the cost per figure to give you an indication.

If you dont get it, then business if probably not for you.

But here is the point that you have missed from before, Hot Toys sell the Peacemaker (lottery to buy it) at about the SAME PRICE as Red Snapper. It is the secondary market that has inflated the price.

I don't know how to buy direct from Hot Toys except through thier shop in HK which as you have said before you must order from 6 months in advance and collect in person which rules me and probably 99% of other buyers out, so retail are our only options and if you look at some retail outlets they are charging 100 to 150 more for a Peacemaker and thats £ sterling not $ dollars.

Fair enough I accept the secondary market is where the major mark up is bieng made but Hot Toys is still charging more for the same figure albeit about the same price and I still cannot see any reason why that should be except to make more money for the same product. Don't get me wrong, that's good business if you can get more money for the same product because it's a different color then great, making money is what it's all about in business, my only point was that there are some who could argue that thats bieng greedy but as I have said greedy and good business are often one and the same.

And I'm sorry I still can't see why the price per figure illistration I used is'nt a valid example? the unit cost per figure is the same per run (I assume) so if you then charge more for some than others you increase the profit margin don't you? really sorry for my ignorance I can't see what i'm missing?

 

[Boba Debt]

No, that is not the meaning. No one has mentioned USD $300 at any stage apart from you. It is purely an illustrative business model to hopefully explain the cost per figure to give you an indication.

If you dont get it, then business if probably not for you.

But here is the point that you have missed from before, Hot Toys sell the Peacemaker (lottery to buy it) atabout the SAME PRICE as Red Snapper. It is the secondary market that has inflated the price.

Are you considering "Side Show Collectables" as part of the secondary market?

If so, they is not exactly how they would be classified in the US. In the US we would consider them to be a distributor which is a company that imports a product and then distributes it wholesale to other companies, a they are also a retailer because they sell direct to the consumer

To me and most other people in the US, the secondary market is comprised of Ebay and people who buy the figures at retail and then re-sell them.