Pricing

Many people may not understand that one big factor in retail is the wholesale to retail split, meaning that as a dealer I paid wholesale prices and then sold dolls above that.  When I started out, most companies offered a 50/50 split and that was very good.  A doll that retailed for $100.00 would cost me $50.00 wholesale.  A few years into it, and one company really took off.  One day, without much warning, the wholesale split shot up to 70/30.  This meant that if a doll had a suggested retail of $100.00, I paid $70.00 wholesale.  Not much room for profit, but the dolls were selling and other dealers wanted in on the action.  Slowly other manufacturers followed suit and the wholesale pricing has hovered around 70/30. 

Over the years I got very tired of hearing customers say that dealers were greedy.  We are NOT greedy.  Some dealers sold items over MRSP- manufacturers suggested retail price.  As a customer, a person has to understand that MRSP is suggested and a manufacturer cannot set a price and force dealers to sell at that price, that would be illegal.  It always made me mad to see customers get so angry at paying over suggested retail but never complaining when they paid under suggested retail because the dealer usually lost money on sale prices. 

Also, the wholesale pricing does not include shipping from the manufacturer. Then add in the cost of running a retail space which can include rent and/or a mortgage, utilities, business insurance, local fees for having a business license, cost of inventory, packing supplies, etc. Now that wholesale split feels more like a 20% retail discount, doesn't it. 

I mention this dry explanation as a way for everyone to gain a better understanding of where things currently are.... not every company is at 70/30, but several are.  Please remember that current dealers are being squeezed very badly by certain companies and are being forced to take everything that is offered or risk losing their dealership.  There have been veiled threats over the years by manufacturers, of course if you ask anyone at the companies they would deny doing anything like that.  

You see, the dealer is the main customer of a doll manufacturer, not the retail customer. Dealers spend alot of money to buy products we think collectors want. We take a risk with hundreds of thousands of dollars every year. Some companies allow dealers to order while one company stopped taking orders and started allocating product many years ago.  And manufacturers started selling more direct dolls than ever before, almost like cherry picking their own best dolls and keeping all the money for themselves while dealers were stuck taking what was in the regular line while not really being able to speak out.

The bottom line is that current dealers are being squeezed.. please be kind and try to spread your dolly business around to the dealers. They need your support more than ever and I give all current dealers a special shout out as they continue to sell during this tough economic time.  Sometimes the pricing is not good and it is not their fault.  Dealers will mark up above suggested retail or bundle items together...these are all just tools to help them move inventory and make money to pay their bills and also make a living, not to be greedy or mean to collectors. 

What are your thoughts about the pricing?