Store Math OR Predicting some toy store will rightfully close down soon

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.

This old thing

The doll is old and so is the dress. My mom made it.

The Death of Barbie

Barbie's popularity is waning even if her price is increasing. If I were to think of a gimmick to promote Barbie, I would kill her first. Superman, the Lion from Narnia and Jean Grey all did it. I guess that is why Barbie is entering the superhero business, to die.

Imagine 5 years without Barbie. Trap her soul in the Cloud, no tangible toy, just some android game, like "Clash with the Clones" where she fights clone Barbie dolls who have taken over the world because they are more reasonably priced.

Barbie collectors will cherish all their dolls because they probably are going to be their last. The demand may build up. The dolls prices might increase in the secondary market knowing that there is no more supply. The amount people are willing to pay for a doll will increase.

And then she does a grand resurrection! Immaculate. Better than ever in all aspect--high fashion, better articulation, more durable with a god-like status.

OK, fine. Maybe it's no big deal if she remains dead.

Going Through Something

For three straight years, Barbie is still on a losing streak. On the 1st quarter of 2015, sales were up in the US but international sales pulled it down.

I wish they don't have a sole distributor locally. Richwell, the local sole distributor marks up the Barbie dolls way too high. If they only had a competition, the prices will be more reasonable and maybe, the dolls will sell more (unless the new distributor agrees with Richwell's price scheme, then let them suffer the same fate).

I wonder how it is in other international market.

Store Story

I went toy store hopping yesterday. Nothing is worth buying at the moment. Sale season is over. I did notice little interesting things.

First stop, Cool Republic Toy in Greenhills. I had a good experience buying from this store before. They allow customers to haggle. The store owner was ranting when I walked in. He was ranting about another customer who was driving a hard bargain. The owner said that if someone wants a toy, they should be willing to pay the price. That makes sense, right? But he sounded like he meant that if someone wants a toy, they should be willing to pay the price no matter how unreasonable.

I went out that toy store immediately. I don't like to patronize sellers who speak ill of their customer in public, no matter how unreasonable the customer is. Yeah, sure they can rant all they want in private but when they do it in public, it speaks a lot about how bad sales people they are. And sales is not just about the quality of product. Customers also pay for the buying experience.

I went around other toy stores in Greenhills. It is interesting to note that they are selling Marvel Infinite Series figures for more than US$10 even if major toy stores have a more competitive price. Major toy stores have more resources so they can offer these figures at lower prices. Small time sellers in Greenhills buy it in foreign retails stores so they don't get bulk discounts. I love a healthy competition. It's good for the consumer. I won't buy the new figures from Greenhills because they are more expensive there than in major toy stores (except for the Blue Beast which is offered by some Greenhills stores cheaper). Old figures that are no longer available in major toys stores are great buys in Greenhills when it comes to Marvel Universe figures.

I also visited the major toy stores. I wasn't interested in picking up any more Barbie Style Resort/Glam Vacation so I wasn't really looking at them after I bought Grace. Yesterday, I was reconsidering getting another with the hat. I immediately dismissed getting another after I saw the price. It has increased by more than 50% in less than a month! That makes me really glad that I bought Grace earlier. That makes my wallet happy, too.

I know someone who works in retail. He told me that they usually double the price so that when they offer it at 10 to 30% off the original price, they still get a profit. When I bought Grace, it's safe to assume that they already have a big enough profit margin. Increasing her price by 50% makes their margin a lot bigger and unreasonable if you ask me. So I'm taking down my blog entry where I promoted those dolls.

I keep telling that we pay for these people's (the store owner, sales person, toy designer etc) salary. We are their boss. We should teach them how they do their business.