Wall Street Plus Elmo Equals More Fear and Trepidation

Posted by jim on October 10, 2008 under Economics | Be the First to Comment

As if the consumer wasn’t scared enough already, now we have to fear that the world’s largest toy manufacturer and the world’s largest toy retailers might not make all the money they had hoped for on yet another version of Elmo.  It appears that Tickle Me Elmo, TMX Elmo, Stretch and Fun Elmo, Ba Ba Baby Elmo, Up Up Elmo and Elmo Knows Your Name have not completely satisfied the public’s appetite for all things Elmo.  This Christmas, Mattel thought the answer was Elmo Live.

Elmo Live is Scary!

But wait, Mattel (Fisher Price), had to cut some corners to keep the price point at $60.  Mattel “made several concessions. Its final version sacrificed some movement to reduce the toy’s complexity. It also eliminated, for example, the ability to swivel at the hip. Elmo Live blows kisses, but other gestures were ruled out.”

And now, with the DJIA devastation plaguing the US economy, Wal-Mart and Toys R Us may not sell enough Elmos.  Wouldn’t that be terrible?  Forget the speciality toy store that can’t just “always invest heavily on Elmo” like Chief Executive Officer of Toys R Us Gerald L. Storch does.  The independent retailer actually has to take risks on unique products, by innovative manufacturers.  Products that the speciality retailer knows are exceptional because they have played with them and researched them.  The only problem is that they haven’t been shoved down the public’s throats like Elmo – often in the name of “education” by PBS’s Sesame Street.

In any event, as consumers we should not fear for Mattel (who just one a monstrous lawsuit against MGA, makers of Bratz), as if spending $60 on Elmo Live at Wal-Mart might some how stabilize the economy and thrill the child that only currently owns a meager 4 out of 400 versions of Elmos.  If Big Box toy companies can’t move enough Elmos at $60, they will just drop the price to $55.  If that doesn’t work, $49.99 sounds about right.

Big Box Toy Companies Extort Consumers

Posted by jim on October 9, 2008 under Consumer Experience | Be the First to Comment

In the wake of WalMart announcing dramatic price drops in the Toy category, KB announced it would drop prices on 200 toys.  CEO Andy Bailen explained, “Clearly, more consumers are looking for affordably priced gifts and that is why we also just took over 200 great toys and lowered their prices to $10 or less.”  What a great gesture to the consumer in this time of economic crisis!

Not so fast!  Let’s look at some of the items on the list.  The Are U Smarter Than a 5th Grader? game.  This game came out for last Christmas.  Toy sellers have been selling that at below cost all year to get rid of it.  MLB action figures – it’s October.  My Little Pony – it’s 2008.

Big Box toy stores are using the fear put into consumers by the DJIA dropping faster and faster every day (in the wake of any news, good or bad) to convince them to buy toys they can’t sell anyway.

Don’t fall for it. Purchasing toys that kids don’t want in order to save money is not going to help the consumer.  Why not make smarter purchases from independent toys stores?  Instead of buying a couple of outdated, useless, sub-$10 toys, why not purchase a product with an online component that is only $14.99 and allows children to play for months and months with other children on the web like VIPs or Groovy Girl RSVPs?

Both presidential candidates have gone on record about the importance of supporting small business and how it helps the economy. What will help the economy faster?  Helping WalMart or KB unload some old stock before Christmas or supporting that local toy store in your town that can barely pay the light bill?

Technorati Profile