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Toy Economics: Price Differences in different markets and the factors behind them

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Toy Economics: Price Differences in different markets and the factors behind them

Postby Jelze Bunnycat » Sun May 17, 2015 3:45 pm

Motto: "The only good is knowledge, and the only evil is ignorance."
Right, given the complaints, misunderstandings and whatnot behind the price differences in different regions of the world, I decided it's take to take a closer look into them.

I started by comparing the standardized prices in the different major markets: the US, Europe, and Japan. There are some gaps due to some product not being available everywhere, but here they are nonetheless. They are Hasbro's and TakaraTomy's MRSP, so in-store prices may vary:

Transformers 2014/2015

Legions
US: $4.99
Japan: N/A
Europe: €4.99 - €5.99

Transformers Robots in Disguise 2015

One-Step Changers
US: $9.99
Japan: ¥1,500
Europe: €15.99

3-Step Changers
US: $19.99
Japan: ¥3,600
Europe: ???

Legions
US: $5.99
Japan: N/A
Europe: €9.99

Warrior Class
US: $14.99
Japan: ¥2,500
Europe: €21.99

Deluxe Class (Adventure Only)
Japan: ¥2,500 - ¥3,500 (for older pre-AoE toys)

Generations

Legends
US: $9.99
Japan: ¥1,300 (via Adventure)
Europe: €15.99

Deluxe Class
US: $16.99
Japan: ¥2,800
Europe: €24.99 - €26.99

Voyager Class
US: $24.99
Japan: ¥4,000
Europe: €34.99

Leader Class
US: $44.99
Japan: ¥7,000 - ¥7,500
Europe: ???

Could anybody check the Hong Kong, Singapore and Canada prices? :) As for conversions, the rules of thumb are:

1) remove the final 2 numbers from the Yen price
2) multiply the Euro price by 1.25.

Those should give the (really roughly) estimated US Dollar price. They're up there, aren't they?

Now, prices are determined by a number of factors like supply, demand, production costs, imports, transport, overhead and whatnot. But in foreign markets, the exchange rate also plays a role (as you Canadians know all too well ;) ). What I'd like to discuss is what influences those prices in a major way. I do want to keep it limited to the standard retail prices and exclude the pricing of imports from online stores for now (as that's a whole different can of worms).

I'll start by saying that, as I've heard, current oil prices don't factor in the price for plastic that much, if at all. Paint apps on the other hand... that would be an area where Hasbro is biting itself with the self-imposed price points. A major example of that would be the Classics Mini-Cons. They were originally planned as 2-packs and had more paint, but the reshuffle into teams of 3 with an adjusted budget meant some apps had to be omitted. Apparently paint costs more than we thought :shock:
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby fenrir72 » Sun May 17, 2015 5:33 pm

Motto: "Power to the strong and the right!"
Weapon: Plasma Cannon
Can I dive in a bit JZGR. As much as oil prices don't directly affect the prices immediately. A bit of yes and no.

As most of our "plastic crack" are manufactured in China and Vietnam, depending on the country's source of energy for manufacture.

China, the world's 1st or 2nd polluter depending on who you ask, uses coal and gas powered plants. More on coal iirc. It's abundant for now in China (heard they are now planing to important from the USA) plus the wages are dirt cheap (also heard that labor is causing trouble with some isolated strikes)so where does the self respecting capitalist pig like hasbro go to manufacture?

So if the country that manufactures products uses electricity from non petrol sources, then rule of thumb would be the product would be cheaper. Though Oil prices too have had a big impact on TF product manufacture as I read that Aaron Archer used to have sleepless nights a few years back when oil/barrel = $100.00 up. It may have also affected the scaling decisions on certain figures. It's in tfwiki (assuming again the source is rock solid reliable)
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Valandar » Sun May 17, 2015 8:24 pm

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The reason people claim prices should be down because oil is down has nothing to do with power plants - it's the fact that plastics are made from petroleum.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Tsutsukakushi » Sun May 17, 2015 8:59 pm

To post my contribution in this thread.

Compared to Canada, Japan and Australia. America has the lowest price for minimum wage. America also has more workers making Minimum wage.

Other countries like Canada, Japan, Australia and some European countries pay their workers a higher price Minimum wage. Less workers in these countries are on minimum wage.

What does minimum wage have to do with Transformers toy prices? The higher the pay workers get in different countries, The more things cost in that country. It's called balancing things out.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Tsutsukakushi » Sun May 17, 2015 9:08 pm

fenrir72 wrote: Though Oil prices too have had a big impact on TF product manufacture as I read that Aaron Archer used to have sleepless nights a few years back when oil/barrel = $100.00 up. It may have also affected the scaling decisions on certain figures. It's in tfwiki (assuming again the source is rock solid reliable)


Agree that rising oil prices was the main reason HasTak made most of the 2009 to 2012 CHUG toys Deluxe class and smaller.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Samsonator » Sun May 17, 2015 9:30 pm

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Current Canadian Pricing (Western Canada, anyway)

Generations/Combiner Wars

Legends: $12.99
Deluxe: $19.99
Voyager: $29.99
Leader: $59.99
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Tsutsukakushi » Sun May 17, 2015 9:44 pm

Samsonator wrote:Current Canadian Pricing (Western Canada, anyway)

Generations/Combiner Wars

Legends: $12.99
Deluxe: $19.99
Voyager: $29.99
Leader: $59.99


Are those just Toysrus prices?

Asking as Toysrus in America charges more than Walmart and Target does.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby fenrir72 » Sun May 17, 2015 9:49 pm

Motto: "Power to the strong and the right!"
Weapon: Plasma Cannon
Valandar wrote:The reason people claim prices should be down because oil is down has nothing to do with power plants - it's the fact that plastics are made from petroleum.


Power plants produce electricity.Electricity runs the plants. If electrical costs are high, the products will also be high as part of cost of manufacture. Economics 101.

Others have also claimed otherwise that the byproduct of oil/petroleum...... ABS/PVC have nothing to do with the rise and fall of prices. Also........how wrong they really ARE!

China and Vietnam are ideal countries to manufacture is because of dirt cheap labor and manufacturing costs. (One part of manufacturing costs is electricity bills)
Last edited by fenrir72 on Sun May 17, 2015 9:52 pm, edited 1 time in total.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby fenrir72 » Sun May 17, 2015 9:50 pm

Motto: "Power to the strong and the right!"
Weapon: Plasma Cannon
Tsutsukakushi wrote:To post my contribution in this thread.

Compared to Canada, Japan and Australia. America has the lowest price for minimum wage. America also has more workers making Minimum wage.

Other countries like Canada, Japan, Australia and some European countries pay their workers a higher price Minimum wage. Less workers in these countries are on minimum wage.

What does minimum wage have to do with Transformers toy prices? The higher the pay workers get in different countries, The more things cost in that country. It's called balancing things out.


Or Economics 101 :lol:
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Tsutsukakushi » Sun May 17, 2015 10:00 pm

fenrir72 wrote: Others have also claimed otherwise that the byproduct of oil/petroleum...... ABS/PVC have nothing to do with the rise and fall of prices. Also........how wrong they really ARE!


:-? Agree that rising oil prices. Had a effect on why the newer Transformers toys cost more.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby fenrir72 » Sun May 17, 2015 10:17 pm

Motto: "Power to the strong and the right!"
Weapon: Plasma Cannon
http://www.plasticsnews.com/article/201 ... ercapacity

This seems to be good news for us collectors.

http://www.polymerupdate.com/

While this one seems alarmingly good(?).Too low a price would mean the resources might not be "harvested" as much as before, so as to create a shortage to stimulate price increases to make it more profitable (give incentives) to "harvest" the raw materials again. A case of supply and demand

http://www.chemorbis.com/plastics-price ... s-abs-pet/

An app to get into the nitty gritty of the industry

Nope! No hidden conspiracy here folks! If the prices of petroleum drops to low, the big bad oil companies might cutback in output so as to increase the prices again. This gives them the incentive to print money. No incentive? The consumers suffer!
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Crimson Prime » Sun May 17, 2015 11:46 pm

Australian Generations/Combiner Wars (sorry, don't know the others off top of head)
Average price at most retail stores here.

Legends: $19
Deluxe: $29
Voyager: $49
Leader: $89
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Jelze Bunnycat » Mon May 18, 2015 6:41 am

Motto: "The only good is knowledge, and the only evil is ignorance."
Crimson Prime wrote:Australian Generations/Combiner Wars (sorry, don't know the others off top of head)
Average price at most retail stores here.

Legends: $19
Deluxe: $29
Voyager: $49
Leader: $89


Samsonator wrote:Current Canadian Pricing (Western Canada, anyway)

Generations/Combiner Wars

Legends: $12.99
Deluxe: $19.99
Voyager: $29.99
Leader: $59.99


Many thanks you two. Are those in-store or converted? I'd also like to see the UK prices for completion sake. :)

fenrir72 wrote:http://www.plasticsnews.com/article/20141010/NEWS/141019997/nylon-pc-abs-could-hit-overcapacity

This seems to be good news for us collectors.

http://www.polymerupdate.com/

While this one seems alarmingly good(?).Too low a price would mean the resources might not be "harvested" as much as before, so as to create a shortage to stimulate price increases to make it more profitable (give incentives) to "harvest" the raw materials again. A case of supply and demand

http://www.chemorbis.com/plastics-price ... s-abs-pet/

An app to get into the nitty gritty of the industry

Nope! No hidden conspiracy here folks! If the prices of petroleum drops to low, the big bad oil companies might cutback in output so as to increase the prices again. This gives them the incentive to print money. No incentive? The consumers suffer!


Well done on looking that up, I'll have to take a gander at that. :APPLAUSE:

Tsutsukakushi wrote:To post my contribution in this thread.

Compared to Canada, Japan and Australia. America has the lowest price for minimum wage. America also has more workers making Minimum wage.

Other countries like Canada, Japan, Australia and some European countries pay their workers a higher price Minimum wage. Less workers in these countries are on minimum wage.

What does minimum wage have to do with Transformers toy prices? The higher the pay workers get in different countries, The more things cost in that country. It's called balancing things out.


I actually had that in Economics Class, under "Buying Power". Put short, it doesn't just take into account how much a person makes on average, but also how much one can buy with what that person makes. The Class also dealt with the Price vs. Wages spiral: if the prices go up, the wages need to go up as well in order to keep the Buying Power stable. Exactly what you were saying.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Crimson Prime » Mon May 18, 2015 9:12 am

JelZe GoldRabbit wrote:
Crimson Prime wrote:Australian Generations/Combiner Wars (sorry, don't know the others off top of head)
Average price at most retail stores here.

Legends: $19
Deluxe: $29
Voyager: $49
Leader: $89


Samsonator wrote:Current Canadian Pricing (Western Canada, anyway)

Generations/Combiner Wars

Legends: $12.99
Deluxe: $19.99
Voyager: $29.99
Leader: $59.99


Many thanks you two. Are those in-store or converted? I'd also like to see the UK prices for completion sake. :)

fenrir72 wrote:http://www.plasticsnews.com/article/20141010/NEWS/141019997/nylon-pc-abs-could-hit-overcapacity

This seems to be good news for us collectors.

http://www.polymerupdate.com/

While this one seems alarmingly good(?).Too low a price would mean the resources might not be "harvested" as much as before, so as to create a shortage to stimulate price increases to make it more profitable (give incentives) to "harvest" the raw materials again. A case of supply and demand

http://www.chemorbis.com/plastics-price ... s-abs-pet/

An app to get into the nitty gritty of the industry

Nope! No hidden conspiracy here folks! If the prices of petroleum drops to low, the big bad oil companies might cutback in output so as to increase the prices again. This gives them the incentive to print money. No incentive? The consumers suffer!


Well done on looking that up, I'll have to take a gander at that. :APPLAUSE:

Tsutsukakushi wrote:To post my contribution in this thread.

Compared to Canada, Japan and Australia. America has the lowest price for minimum wage. America also has more workers making Minimum wage.

Other countries like Canada, Japan, Australia and some European countries pay their workers a higher price Minimum wage. Less workers in these countries are on minimum wage.

What does minimum wage have to do with Transformers toy prices? The higher the pay workers get in different countries, The more things cost in that country. It's called balancing things out.


I actually had that in Economics Class, under "Buying Power". Put short, it doesn't just take into account how much a person makes on average, but also how much one can buy with what that person makes. The Class also dealt with the Price vs. Wages spiral: if the prices go up, the wages need to go up as well in order to keep the Buying Power stable. Exactly what you were saying.


In store for the Aussie ones at average retail, IIRC toys r us adds 99c to the various sizes, haven't been there in a while.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Tsutsukakushi » Mon May 18, 2015 3:37 pm

It's not just the rising oil cost that causes Transformers toys at the production factories near China to rise in prices.

It is also the Transportation of products by boat, trucks and planes that use oil. That causes the products to rise in prices in stores.

If stores in America have to pay double gasoline prices per gallon. to fill their transportation trucks, boats and jets. these cost get past on to the buyers in the form of price hikes on their products in the stores.

The more gasoline cost per gallon in that particular country. if effects the prices of products in stores.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby fenrir72 » Mon May 18, 2015 3:47 pm

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Weapon: Plasma Cannon
Tsutsukakushi wrote:It's not just the rising oil cost that causes Transformers toys at the production factories near China to rise in prices.

It is also the Transportation of products by boat, trucks and planes that use oil. That causes the products to rise in prices in stores.

If stores in America have to pay double gasoline prices per gallon. to fill their transportation trucks, boats and jets. these cost get past on to the buyers in the form of price hikes on their products in the stores.

The more gasoline cost per gallon in that particular country. if effects the prices of products in stores.


As I previously mentioned, if statements on how negligible the prices of transportation fuel has NOTHING to do with the rise of prices (luxury or nececcesity alike) is really waaaaaaaaaaaaaaay out there.

All these factors are interconnected.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Tsutsukakushi » Mon May 18, 2015 4:18 pm

fenrir72 wrote:
Tsutsukakushi wrote:It's not just the rising oil cost that causes Transformers toys at the production factories near China to rise in prices.

It is also the Transportation of products by boat, trucks and planes that use oil. That causes the products to rise in prices in stores.

If stores in America have to pay double gasoline prices per gallon. to fill their transportation trucks, boats and jets. these cost get past on to the buyers in the form of price hikes on their products in the stores.

The more gasoline cost per gallon in that particular country. if effects the prices of products in stores.


As I previously mentioned, if statements on how negligible the prices of transportation fuel has NOTHING to do with the rise of prices (luxury or nececcesity alike) is really waaaaaaaaaaaaaaay out there.

All these factors are interconnected.


A quick online search reveals. That the rising cost of oil prices. Does have great impacts on stores in that country. that result in stores raising their products prices. As the Transportation trucks, boats and jets use oil to deliver the products to stores.

http://useconomy.about.com/od/inflation ... o-High.htm

http://chronicle.augusta.com/news/busin ... umer-goods
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Jelze Bunnycat » Mon May 18, 2015 4:26 pm

Motto: "The only good is knowledge, and the only evil is ignorance."
Any other factors besides oil prices that could dictate prices? We all know the regular raw material, R&D, human labor and whatnot, what about the ones that determine the prices overseas? Aside from transport of course.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby fenrir72 » Mon May 18, 2015 5:56 pm

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JelZe GoldRabbit wrote:Any other factors besides oil prices that could dictate prices? We all know the regular raw material, R&D, human labor and whatnot, what about the ones that determine the prices overseas? Aside from transport of course.


Local (depending on the country) taxation policies. Some countries labels toys as "luxuries" so their eager beaver taxman just can't wait to lay their grubby slimy hands on such.

The demographic and size of the target audience/ consumer who's going to purchase the items.The lower the base, the higher the price range or vice versa.

I'll also return to transportation costs, if the pier/dock facilities are cr@ppy, this also affects the pricing......so local infrastructure also has a bearing on the cost on transportation.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Jelze Bunnycat » Tue May 19, 2015 6:35 am

Motto: "The only good is knowledge, and the only evil is ignorance."
fenrir72 wrote:
JelZe GoldRabbit wrote:Any other factors besides oil prices that could dictate prices? We all know the regular raw material, R&D, human labor and whatnot, what about the ones that determine the prices overseas? Aside from transport of course.


Local (depending on the country) taxation policies. Some countries labels toys as "luxuries" so their eager beaver taxman just can't wait to lay their grubby slimy hands on such.


You mentioning taxes made me realise I totally forgot about VAT (Value Added Tax), how they're applied and especially when. Prepare to be amazed:

US: after purchase, rate depends on city or county
EU: included in price shown (what you see is what you pay), rates depend on country. The Netherlands have two rates: 6% for food, and a whopping 21% (!) for luxury goods since 2012.
UK: Anybody know?
Japan: Ditto
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby LegendaryAntiHero » Tue May 19, 2015 3:08 pm

That's odd. I thought the Europound was worth more than the dollar
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Crimson Prime » Tue May 19, 2015 5:42 pm

LegendaryAntiHero wrote:That's odd. I thought the Europound was worth more than the dollar


The Euro is currently worth $1.1149US
The Pound is currently worth $1.5514US
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Jelze Bunnycat » Tue May 19, 2015 5:51 pm

Motto: "The only good is knowledge, and the only evil is ignorance."
LegendaryAntiHero wrote:That's odd. I thought the Europound was worth more than the dollar


Only barely though. However, thinking everything cost the same in any valuta is a big mistake, as you'll see once you convert the non-USA prices. In fact, everything in the U.S. is dirt cheap compared to here. For instance:

- What you guys pay for a big mansion is barely enough for a simple family home here.
- Gas is charged by the gallon with you guys, in Europe it's charged by the liter, which is roughly a mere quart.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby fenrir72 » Tue May 19, 2015 6:03 pm

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JelZe GoldRabbit wrote:
LegendaryAntiHero wrote:That's odd. I thought the Europound was worth more than the dollar


Only barely though. However, thinking everything cost the same in any valuta is a big mistake, as you'll see once you convert the non-USA prices. In fact, everything in the U.S. is dirt cheap compared to here. For instance:

- What you guys pay for a big mansion is barely enough for a simple family home here.
- Gas is charged by the gallon with you guys, in Europe it's charged by the liter, which is roughly a mere quart.


Which makes Kanrabat statement in the other thread accurate in spirit......the domestic consumer market in the USA is way way fortunate friendly if compared to other nations.
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Re: Toy Economics: Price Differences in different markets and the factors behind them

Postby Editor » Tue May 19, 2015 7:03 pm

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As I do not see that Samson has responded, those look like TRU prices, in CND Dollars.

Prices between our TRU and Walmarts fluctuate, but currently CW limbs are 2 bucks cheaper at TRU.

And sorry if I've missed it, but two major cost issues that effect us above the connected 48, are a) costs for shipping to remote chain stores are spread out to all to cover, and I doubt you would find too many shipments to "remote" locations in the 48 are anywhere close to the costs to some Canadian cities that sit further from the main centres where the distribution points are. And b) the one I think gets overlooked by many, of the numbers of total units produced for any given area, where there are changes in packaging, inserts, and other add-ons seen or not seen in other areas.

This affects Canadians because as we all know our packaging and add-ins are usually different, and that needs to get paid for somewhere, but if we expand it to the bigger picture.....

I've seen a lot of posts stating the costs for the Japanese market against the US market, and they don't touch on a major fact that while the Japanese market is mainly targeting collectors (IMO) while Hasbro is still producing for kids first in most cases. Even with Japanese releases getting to the secondary english market, the odds are for many the numbers being produced are smaller (let alone the number if small run special editions done over there) than the "hasbro" units being produced for multiple countries/markets.

This one bugs me when not looked at, because if something from Takara is only produced to say 25,000 units, while the Hasbro release is 100,000 units, then it goes without saying that the Takara one will cost more to produce due to the smaller print run. It's a fact of manufacturing. (and yes, my day job deals with stuff like this so i'm not just talking out my ass) to figure that something that comes out of the same moulds but in different colors and/or paint apps should cost the same without looking at the production numbers and per unit production costs is shortsighted.

Well that's just my 2 cents. (currently worth approximately $0.0164 US, 1.97 yen, 1 pence sterling, or 0.01 euro. )
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