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brian san brian san
 

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M$2.01  Funded By Mahalo ? |  November 02, 2009 11:11 AM

What is the highest profit margin children's toy of all time?

Just watching my kids play with Kapla blocks (expensive blocks of wood that seem to be the Legos of my childrens era) and wondered what toy has made the most profit for it's manufacturer compared to the cost of manufacturing.
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buddawiggi buddawiggi
 
 November 02, 2009 02:44 PM
I have been looking around awhile now and cannot find toy specific information. However I have learned that toys in general have a profit margin of less than 10% (Hasbro and Mattel 8.62% and 9.10%).(1)

Sex toys claim to have 30%+ margins.(2)

According to this article from Forbes video game publishers will have to sell one million+ units to start to clear 1$ a unit.(3)

Contrary to the Forbes article is this one from the LA Times stating that Microsoft would see a 90% profit margin for Halo 3. This would qualify as the highest profit margin toy ever.(4)(5)

The difference between margin and markup.
http://www.synaptici.com/2009/the-difference-between-margin-and-markup/
Source(s):
(1)http://www.theonlineinvestor.com/stock_research/top_10_profit_margins/toys_...
(2)http://www.ehow.com/how_5428286_hosting-toys-party-quick-guide.html
(3)http://www.forbes.com/2006/12/19/ps3-xbox360-costs-tech-cx_rr_game06_1219ex...
(4)http://articles.latimes.com/2007/sep/24/business/fi-halo24
(5)http://www.n4g.com/industrynews/News-70041.aspx

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Tags: profit, toys

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lisak52 lisak52
 
November 02, 2009 12:47 PM
I would guess that it has to depend on what era we are talking.Nowadays things cost more to make therefore sell at higher rates.

When I was a young girl,I remember that the hulahoop was HUGE. Now,Kids are not so much into it. I also remember the rediculous ordeal my parents went through to get me an original Cabbage Patch kid.I still have the freaky looking thing.I can not give it away now,It is in MINT condition. That cost more back then than they do now.

SOOOO my guess is the Cabbage Patch Kid.

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gno gno
 
November 02, 2009 02:17 PM
Sadly, I was unable to find any concrete data for you. Between sweat shops and outsourcing, toys are so cheap to make that I always assume the profit margin is 99.999%.

So for the sake of satiating your curiosity, I'm going to take a few guesses at toys that should have the highest profit margins in the history of kiddom:

1. The Pet Rock
http://creditcardpundit.com/wp-content/uploads/2008/04/pet-rock.jpg

2. Playdough.
I mean the stuff is really just flour, corn starch, water, and food coloring.
http://blog.makezine.com/F8NZ8W82J8EV0FB31K.medium.jpg

3. Koosh Balls
Essentially just some dyed rubber bands arranged in a neat way.
http://ecx.images-amazon.com/images/I/51KJS8KPGSL._SL500_AA280_.jpg

4. Pokemon Cards
http://images03.olx.com/ui/1/57/11/7715611_1.jpg

5. Razor Scooters
Com'on. They're just tiny metal scooters.
http://www.razor-scooters.com/razor-scooters/razor-ms-130a3-125/razor-scooter-a3-125mm-red.jpg

Tags: toys

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easyeboy easyeboy
 
November 02, 2009 03:50 PM
Any of the Elmo Toys, the Tickle Me Elmo is just one example. They sell so many of these toys with Elmo on it. They've got Elmo dolls, bicycles, and so much more just with Elmo or Sesame Street characters, but Elmo is the number one seller. If it's not Elmo, then it's the Beanie Babies if you can call them toys, they are the best selling of all time. I would go with Elmo, and anything Sesame Street related before going with Star Wars or Nintendo because people rent the games and Star Wars is a smaller audience of boys, whereas boys and girls alike play with Elmo dolls. Fisher Price makes the Elmo toys.

Source(s):
http://www.squidoo.com/elmolivesesame
http://www.toy-tma.com/best-selling-toys/


Tags: sesame, beanie, street, babies, elmo

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pellrider pellrider
 
November 02, 2009 07:56 PM
It is all in making a brand. Once the name is established it is easy to sell the toys. I was checking the news for Mattel Inc, who make Barbie dolls. They are still making profit, but a bit reduced Hasbro Inc., who make action figures like Transformers, G.I. Joe etc. cut the production costs, when sales reduced.These two are large toy makers.


Source(s):
http://online.wsj.com/article/BT-CO-20091016-709100.html
http://www.marketwatch.com/story/hasbros-quarterly-profit-rises-on-cost-cut...


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