Unit cost for S4 Panther

[CrazyinTexas]

I think they copy and pasted too much into the description.

Product Item Number: 10122 S4
Unit Wholesale Cost: $49.90
Unit MSRP: $99.99
Payment Terms: Prepaid
Shipping Terms: F.O.B. Ex-Warehouse

click on link for page view.


http://www.thetoyfederation.com/xcart/p ... 357&page=1

[Jesse James]

Haha, yeah indeedy they did. I dig seeing that you are actually paying double what the thing cost them. Guess they're leaving some sale room for leverage incase it just doesn't astonish them by flying off shelves at $100.

[normandy]

Now that's a kick in the a$$ for the collectors.

[hotrodrock]

Belong to another diecast site where I was always ranting about diecast cars that dealers wanted $130 for that I always could get off of ebay for $80 even when they were first released. Some of these ebay dealers were regulars so I knew they were not losing money even taking $50 less than internet dealers. I was always asking what the cost was to the dealers. One answer I got was this "You really don't want to know what they are paying compared to what they are selling them for. It would just piss you off".

[King O' Fools]

Why does this not surprise me in the least?

[STUKA]

but they are also buying in bulk? right?

[GooglyDoogly]

You really can't expect retailers to sell their products near their cost. They have stuff like overheads, bills, family to provide for, etc to worry about.

And the MSRP was $100. The Toy Federation,'s price was below the MSRP.

And as Stuka said, they buy these things at dealer's prices, but in bulk.

Now any of you guys would wanna buy these tanks at $49.99? Get a business license, pay all the necessary fees and taxes, then ask 21st to sell you a bunch of items at dealer's prices, but you gotta cough up several hundreds, if not thousands of dollars to buy a bunch of Panthers in bulk then pay for shipping....

[aferguson]

the wholesale cost is only a bit lower than i would have expected it to be. And as stated above i haven't seen anyone selling panthers for $100. Most i have seen are $79.99, some less, some a bit more. I hardly think a $30 mark up is outrageous, given the expenses of running a business and needing to make a profit.

If anyone thinks there's gold in them there hills, given the low wholesale costs, then you're free to become an etailer yourself...but i'm not expecting a stampede...

[coreystinson]

Haha, yeah indeedy they did. I dig seeing that you are actually paying double what the thing cost them. Guess they're leaving some sale room for leverage incase it just doesn't astonish them by flying off shelves at $100.

Of course, you aren't bothering to factor in all of the other direct and indirect business expenses that they incur, as if they are just taking your money and having it dropped-shipped from 21st Century's warehouse.

Yes, the whole MSRP vs. "our low low price" is a gimmick. Yes, "free shipping" with inflated item price is a gimmick.

But, remember, these 1:18 scale models cost a lot to transfer from 21st Century's warehouse out to vendor. It adds a non-trivial amount to the wholesale cost of every model.

None of these vendors including myself are taking trips to Europe on the profit they are making from selling these models, I assure you.

[Jesse James]

Believe me, plenty of years in school for business management and working in production with plastics and stainless leave me with quite a bit of knowledge on the production aspect, and having done retailing management and purchasing I've got a little experience there too. Add in knowing many e-tailers personally, I know that leaving yourself 100% gaps in your sale price vs. your cost-per-unit price isn't the norm... I factored in plenty of the overhead issues any given company might be incurring... The only conclusion I came up with is that sales are just dismally slow so you've gotta milk what you can from what you've got, but that formula usually doesn't wind up working. Fact is I don't know anyone with an etailing store that runs that high of a margin though, but that's me. I've known a couple folks who kept prices too low and failed, and some who kept them too high and failed.

I've found stores that do jack their prices up 100% usually don't last long, especially in this day and age, and nor do they deserve to what with all the competition out there. Now if they're selling at $80 or $70 on an item that cost them $50, it makes more sense to me and fits with the online retailers I know and how they price things to actually move, but still with some possible room for discount and still generating a profit. If you're marking up 100% on one tank though because of your overhead, you're not doing a very good job running your business IMO.

But that's me... You maybe run yours at 100% mark-up, I don't know Corey, as I've never bought from you. All I know is I can count at least 3 off the top of my head that don't have a single item in their inventory for 100% mark-up. Maybe they just do better business though, and thus they can afford to cut some prices? Again, no offense to you and how you price things, I'm just speaking from my own extensive experience in the realm of toys.

I've gotta ask though, you always get angered/annoyed whenver MSRP and Unit costs and things come up, and you're pretty well known for saying, "it's not like it's that profitable" (Paraphrasing obviously)... So why bother? It seems like it must be a struggle to make a buck at all. Some of the larger stores I know do quite well, but a lot of the smaller stores have a similar gripe and it really just doesn't seem like a venture worth getting into for many people since they're not really making much off it.

[coreystinson]

Believe me, plenty of years in school for business management and working in production with plastics and stainless leave me with quite a bit of knowledge on the production aspect

That's great, seems even more odd then that your original post was such a massive populist-pandering oversimplification of retailer pricing vs. wholesale.

But that's me... You maybe run yours at 100% mark-up, I don't know Corey, as I've never bought from you.

Whether you have or you haven't wouldn't answer that question for you anyway... the point seems irrelevant?

Again, no offense to you and how you price things, I'm just speaking from my own extensive experience in the realm of toys.

Well, of course you don't know how I price things, but given that I have a $74.99 price on the Panther and that most of my merchandise is shipped half-way across the U.S. to my warehouse, you probably have a general idea.

I've gotta ask though, you always get angered/annoyed whenver MSRP and Unit costs and things come up, and you're pretty well known for saying, "it's not like it's that profitable" (Paraphrasing obviously)...

The consumer in general seems to have the attitude that if the business selling them product makes a profit, consumer is being ripped off. I see this attitude all the time in the various forums. Any time any information is revealed about possible wholesale pricing, shipping costs, etc. is is immediately deconstructed into a conversation about how the consumer is getting screwed. It is, in almost every circumstance, overblown. Why even bother complaining about it? If you can get it cheaper elsewhere, do so. Unless you've actually be ripped off my someone, seems as if whining on forums and complaining about particular retailers' prices vs. Wal-mart, etc. seems pointless to me.

So why bother? It seems like it must be a struggle to make a buck at all.

Running a profitable business, any business, is a struggle at times. There are times when things go well, and times when they do not go well. It's par for the course. Those who can't cut it get a day job.

[coreystinson]

Haha, yeah indeedy they did. I dig seeing that you are actually paying double what the thing cost them. Guess they're leaving some sale room for leverage incase it just doesn't astonish them by flying off shelves at $100.

And P.S. I looked at the page just now and the item is priced at $79.99 w/ them claiming the MSRP is $99.99 so help me out with my math, but I am not seeing a 100% mark-up here?

[popeye357]

I love lamp

[aferguson]

chill out guys........if you have a disagreement do it in pm or email please.

[Jesse James]

And P.S. I looked at the page just now and the item is priced at $79.99 w/ them claiming the MSRP is $99.99 so help me out with my math, but I am not seeing a 100% mark-up here?

I went by CrazyInTexas' post and didn't visit the link because I hadn't planned on buying it regardless, nor did the topic really mean that much to me obviously, but I also don't know if the price has always been $79.99 or $100... Did it change? I dunno... $80's certainly better and jives a bit more with the Unit Cost and more normal %'s.

Was my post a simplification? Sure, I guess I didn't feel the need to break down estimates on their lighting bill, gas, rent, taxes, etc. Like I said, this topic wasn't THAT big a deal to me as it has become to you. Most people with a 100 level accounting course under their belt assume overhead and don't need this broken down for them, especially around here where I think people are pretty much an older crowd. It was just a laugh at the MSRP and the Unit cost being a 100% difference which isn't the norm.

It wasn't meant as a comparison of etailers to WM or anything else like that. Hell it even wasn't a comparison of etailers to etailers. B&M almost always get bulk discounts that most etailers aren't even close to what WM was pulling in with their old XD deal(s). TRU even has a drastically different bulk discount (on XC) compared to WM and I'm sure theirs still blows away what most etailers manage.

But again though this all rolls back to the first post from CIT... It was just a comment on MSRP/Unit costs and what a wide gap it was. Like I said, it wasn't that big a deal with my post but I can understand where the owner of an etailer takes offense to it...

Then again, I don't run a full etailing business so I also can't say that I'm worried about "them" either... Doesn't everyone look out for themselves ultimately? To me, it's about getting it at a price I find fair, and while it annoys you, Corey, to have to listen to the consumer's opinion(s) on the matter on different forums (I know Joe people are up in arms right now over that line's price hikes this past year), I'm not apologetic to you over the matter either... Personally as a businessman myself I tend to just roll with the punches when my own customer-base isn't happy over prices... As you say that's par for the course. Business/consumer relationships are advesarial ultimately as much as they are a symbiont thing.

If it's of any consolation though, people do feel your pain on overheads I'm sure, and making a business succeed. Especially a business that thrives off of extra cash like toys.

Whether you have or you haven't wouldn't answer that question for you anyway... the point seems irrelevant?

I've got plenty of friends who run their own stores (as I noted) that let me know unit costs or sometimes let me hop onto an order now and then, that was my point... Since I haven't stopped by your place to order I just don't know how you price things (I don't order much XD online in general). You could be insanely fair or not, I don't know. I've heard nice things about your store though.

The consumer in general seems to have the attitude that if the business selling them product makes a profit, consumer is being ripped off. I see this attitude all the time in the various forums. Any time any information is revealed about possible wholesale pricing, shipping costs, etc. is is immediately deconstructed into a conversation about how the consumer is getting screwed. It is, in almost every circumstance, overblown. Why even bother complaining about it? If you can get it cheaper elsewhere, do so. Unless you've actually be ripped off my someone, seems as if whining on forums and complaining about particular retailers' prices vs. Wal-mart, etc. seems pointless to me.

There wasn't a complaint from me. I just found it funny the MSRP and Unit costs were 100%, that's all... That was more a personal comparison to what I know from friends with stores that share that information with me, or from my older days when I worked retail as a merchandiser, etc. 100% mark-ups weren't common was my point. Call it an "accounting joke" perhaps?

No gripes from me though... I actually have a pretty negative view of WM and welcome competition towards them and any other B&M retailer. Can you get stuff cheap? Sure thing, but they're not without major flaws themselves to get those prices.

Ultimately though this just isn't that big of a deal to me, so I hope you're not taking it as seriously as you seemed to be Corey. It wasn't even aimed at you and your store, but like I said I can sympathize with your views too I think.

And Brick... It's ok.
(for popeye)

[Jesse James]

chill out guys........if you have a disagreement do it in pm or email please.

I don't think it's as bad as it seems(ed) Aferg, as I think some of it was a misunderstanding more than anything else.

[aferguson]

well Popeye turned the love lamp on, so it can't be good..

[Jesse James]

I'm sorry Brick.

News team is AOK.

[popeye357]

Hahaha, thats my diffusing grenade:) gets em every time

[lightning2000]

I was wondering what Popeye's comment meant!

Must be old age setting in and not being able to keep up with the youngins. I turn 52 tomorrow. Doh!

Lightning2000
www.themotorpool.net

[popeye357]

Happy Birthday Lightnin!!