Speaking to the investors during Hasbro’s 2021 First Quarter Financial Results Conference Call, the toy giant stated that the company will raise toy prices to counter the rising raw material costs.
“Hasbro Inc (HAS.O) said on Tuesday it would raise prices of toys and games to counter higher raw material costs as the company sees surging demand for its Nerf blasters and board games from families spending more time at home.
Shares of the Monopoly maker, which late on Monday announced the sale of Entertainment One Music to Blackstone Group Inc (BX.N) for $385 million, rose 1% in morning trading.”
“Freight and input cost increases have become more pronounced over the past several months, and we have plans in place to help mitigate those costs, including price increases for the second half of the year,” Hasbro Chief Financial Officer Deborah Thomas said.
The toymaker, like most U.S. manufacturers, has had to contend with rising resin, packaging and metal prices, as well as soaring transportation costs due to high demand and supply disruptions caused by the COVID-19 pandemic.
News Post: Hasbro To Raise Toy Prices Due To Raw Material Costs
Eh, to be expected. Plastic takes oil to make, and oil is going up, so of course plastics will go up along with it.
Bah...its more corporate greed than anything. Just means hasbro will be getting less of my money. Just more money for wine and cupcakes.
This is all to say: if prices go up enough to make it unpalatable for scalpers to hunt down product, I'll gladly pay a few $ more to get product in stores and online.
Spend $23 now to avoid spending $55 later to get it on eBay. The math is pretty clear.
They're saving 4 to 5% on labor by manufacturing in China but transportation makes the cost between foreign and domestic manufacturing minuscule.
If Hasbro put some half-automated factories in Mexico and invested in clean ground freight they could skip the port crunch entirely and keep labor costs down, too. Hell, put it in the USA and lead an innovation in Made In America. But no, they want to focus on raw materials because it's part of a speculative commodities market they can't fully control.
Playing the victim while they egg on a service industry that has people basically babysitting boxes all day. It would be a lot different if we were actually making those boxes and what's in them.
I figure we will see 6” figs going for around $22 now.
If Hasbro put some half-automated factories in Mexico and invested in clean ground freight they could skip the port crunch entirely and keep labor costs down, too. Hell, put it in the USA and lead an innovation in Made In America. But no, they want to focus on raw materials because it's part of a speculative commodities market they can't fully control.
Playing the victim while they egg on a service industry that has people basically babysitting boxes all day. It would be a lot different if we were actually making those boxes and what's in them.
There is no incentive to move operations out of China and many other Asian territories because it's still far cheaper to manufacture. Also freight issues are tentative and will fluctuate. Right not it's all time highs because of demand and a whole ton of other factors related to pandemic backlogs, shut downs, and bottlenecks at ports.
The investment to build factories, train staff, and more is not worth it and even the companies moving out of China, are not moving operations to the US and often not Mexico cause it's not worth it. Freight issues will iron themselves out with time, but the covid related production woes is not gonna have companies investing billions in setting up new factories in countries where they are then going to be spending a whole lot more then to produce, not to mention the process of setting up these new facilities will take years. Samsung's moving of factories to Thailand took years, and those willing are moving to other Asian countries as it's still far cheaper to produce in while they are also avoiding the tariffs we are having to pay in the manufacturing industry to use China.
Our company is being priced out of China cause of many factors and the tariffs just cemented that... so we switched to getting our product manufactured in Vietnam. Still having to raise prices as global material costs are rising across the board, shortages of raw goods, oil price increases, and the freight increases also. But compared to getting our product made here in the US? Still in the end 40-50% cheaper to go overseas.
Oh LAWD!
Yeah companies across the board are announcing this. Haven't you all known for a while that we're @%$#ed?
Ehh, we all knew this was going to happen. Wonder what the new price will be?
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