Well, after I explained to them that we “e-tailers” HATE the term “e-tailer”, I finally got them to make an exception and sell me product. Can you believe it?

Once again, we are in the same situation, besides this time there is no one available to beg. We have been purchasing Bakugan (a Spin Masters product) from a distributor in NYC for 1-2 years now. This year Spin Masters has come out with a pretty sweet new product called Liv Dolls.  So, I contacted our supplier, told him to get me some product when he places his next order from the manufacturer.  And, nope, they won’t sell it to him.

That doesn’t stop me.  I call the manufacturer and, nope, they won’t sell to me either.  Only available in “mass” this year.  That’s ‘toy’ for ‘we don’t need your little insignificant store’.  They tell me I can buy them from Wal Mart.

In any event, be careful this Christmas.  If Big Box stores continue to dominate the toy market….  If they kill the category – it is only a matter of time before they select for you what toys you can buy.  If the independents like us go away, there will be no more balance.  Just check out this article in Time.

The Grinch Aint Got Nothing on Walmart

Only BJs’ and Walmart’s sales were up in November 2008 – while every other retailer in America was down.  Let me repeat….  Walmart’s sales were up in November 2008 over last year.  The sky is falling – we are heading towards another depression and Walmart’s sales were up.  Hmmm….  Toy Industry is recession proof?  Nope.  Walmart is recession proof!

While the media has convinced everyone that the sky is actually falling, which certainly appears to be accurate, we also seem convinced that the only way a consumer can save money in these times is by shopping at Walmart.  So, Walmart “lowers prices” on all these toys and, still, they sell more dollars than last year.  While the rest of the toy retailers are down.  Interesting….

Goodbye KB (although I think we said goodbye years ago, if I’m not mistaken).  Goodbye Toys R Us.  So long E-toys (didn’t we do that years ago too?).  Adios speciality toy retailers.

Let me share a couple of stories.  We put a particular item that featured a particular superstar – a no brainer, no lose, toy item – in our Christmas flyer (of which we had 30,000 printed).  Retails for $59.99.  My cost was $49.50.  Not much markup, but a very nice, attractive item.

Big box is selling it for as low as $14.99!  I have an email in to the manufacturer – that was ten days ago, still awaiting a response.

We carry LeapFrog Didj – a great new product this year with a minimum advertised price of $89.  That means that NO ONE can sell it for less than $89.

Big box wasn’t moving enough.

So LeapFrog changed the map to way below our cost – now Amazon is selling at $49.99.  Hmm….

Define Category Killer.  One word:  Walmart.  Good for the consumer?  Save Money.  Live Better.  That’s their slogan?  Really?  Save Money.  Live Better.  Has anyone ever set foot in a Walmart and felt like they were living better?  Obviously, Walmart is talking about their customers, not their employees….  And are their customers living better?

If they are, it’s not for long.  When the category is officially killed, how low will those prices be then?  When Walmart is choosing the toys you can buy, and what you can buy them for – and no one else is around to balance….  Try to save money and live better then!

Speaking of saving money, when did that ever become the American dream?  I guess that’s another blog entry for another day…..

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.

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?

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