If a toy kiosk owner pays 10,000+pesos per month for the store space that has 200 boxed dolls in their inventory, a monthly cost of 50+pesos per month is added to cost of the doll. The store owner pays 600+pesos a year just for keeping a doll on display.
A Holiday Barbie from 2011 could be had for 1,500+pesos. The small toy store is still trying so hard to sell it for 3,000pesos since 2012. Three years have passed so that means the owner has already spent about 1,800+pesos just by displaying the doll for that long. The total cost so far is 3,300+pesos and is still increasing as long as it doesn't sell.
If some misinformed collector buys it for 3,000pesos, the seller still has a net loss of 300+pesos.
The figures above are just rough estimates. The loss in one toy can be covered by a profit from another toy. That explains the high markup in the prices. But it doesn't explain why they can't cut their losses early on by offering discounts after a year of not being sold like what normal toy stores do.
A Holiday Barbie from 2011 could be had for 1,500+pesos. The small toy store is still trying so hard to sell it for 3,000pesos since 2012. Three years have passed so that means the owner has already spent about 1,800+pesos just by displaying the doll for that long. The total cost so far is 3,300+pesos and is still increasing as long as it doesn't sell.
If some misinformed collector buys it for 3,000pesos, the seller still has a net loss of 300+pesos.
The figures above are just rough estimates. The loss in one toy can be covered by a profit from another toy. That explains the high markup in the prices. But it doesn't explain why they can't cut their losses early on by offering discounts after a year of not being sold like what normal toy stores do.
No comments:
Post a Comment