MSRP for real??

[Gepetto]

I have had talks recently with several stockists both brick and mortar and on-line who told me that Playmobil has set up pricing requirements and if their products were sold for less than Playmobil is selling them for they will not be shipped product.

This discussion started because I was surprised at the dearth of new Playmobil on the dealer's shelves (our TRU has about 3 boxes left from before Christmas and nothing else) and was wondering what was going on, stores that sell at list are fully stocked although even our Target has less than it did last year. The on-line prices I have checked have gone up immediately and are all close to list, the only real bargains are from old stock.

I had read the articles about Playmobil being charged with price fixing about 5-6 years ago but had hoped this was an aberration, this sounds like Games Workshop all over again. Has anyone else encountered this or have just stumbles upon some sour grapes?

Several dealers told me they were considering dropping the whole line, sigh.



Gepetto  (I feel like such a wet blanket!)

[CountBogro]

mmm ... if it is, then it's a US - thing. There's no real sign of it over here in the Netherlands though.

Bogro

[Timotheos]

Target and Ridge Road Station both under-price Playmobil USA so the scenario described above sounds mistaken.

-Tim

[Gepetto]

I know Target has their blisters but I haven't seen any sets for a while. Well this is not something to dwell on just something to be aware of to see if there is any merit. I hope that there isn't and this is just isolated for whatever reason.


Gepetto

[Justindo]

From what I've seen, brick and mortar stores have always charged MSRP or MORE, however there are a number of sites online that discount.  Look at Ridge Road Station and Toymine.

[Indianna]

Over the years I have heard several complaints about Playmobil USA from the small independent toy stores that have traditionally been the best sources for a good selection of Playmobil.  These include pressure to carry the whole line, little support from dealer reps, and pressure to charge full price except for maybe an annual sale (the whole price-fixing thing that Gepetto mentioned, although legal action was taken it is still a problem.)

Since Target and TRU have started selling a limited range plus exclusives, small independent retailers have even more to complain about because they get those same items that were exclusives later and at a higher cost.  The focus of big retailers like Target & TRU is to sell "this season's line" quickly and then put it on clearance in order to clear the shelves for the next season's items (this has worked out awfully well for some of us - I got several treehouse and black castle sets for $10 each plus other great deals, too.)  But this can lead to a situation where, for example, a Target exclusive like the 5756 Unicorn Fantasy Land is sold first at Target for $29.99, then put on clearance after awhile, then later becomes available to the independent toy stores who end up selling it for $40.00.  The focus of the small independent retailer is more to be a place where customers can find a large range of Playmobil any time, not just seasonally.  To add injury to insult, the first year of the Target & TRU exclusives, Playmobil USA did not fill all of the independent retailer's orders in time for Christmas sales because they were busy catering to the two big name outfits - this understandably left those small stores angry and disappointed.  Combine all of these issues with the full line being available through Playmobil.com and there is little incentive for small toy stores to carry Playmobil anymore.   

I think this is a huge mistake by Playmobil USA (emphasizing Target and TRU at the expense of their traditional retailers) because the small stores are the places that educated the public about the value of the Playmobil line and helped people to understand that the quality justified the price.  Putting only a few flashy examples of the Playmobil toy line on the shelf at Target next to LEGO or Imaginext or whatever leads to crappy products like the take-along houses, take-along pirates, and the take-along castle and doesn't encourage people to become involved with the whole line of Playmobil toys.

Here in New England the small independent toy stores have been steadily going out of business over the past several years, hurt by both the failing economy and the Walmartification of the toy industry.  The few stores that hang on have ever-dwindling stocks of Playmobil.  If Geobra wants to make real progress in the US market, they will need to re-think their whole USA marketing strategy, IMHO.


- Anne

[extjmv]

Well, I have a shop in Spain and:

- 4 months without getting nothing from Playmobil Spain, the don't have stock since October!!!!
- Prices has increased 7% for Retailer, the playmobil's online shop has incresed only 1%, so we get low margin!!!
- TRU is selling Playmobil 20% over the playmobil's online shop!!!!

[Timotheos]

Much of this thread, at least with respect to the USA, sounds like rumor and hear-say, because in addition to Target, Ridge Road Station under-prices Playmobil and also does not sell the full line.  Most toy shops I have encountered do not offer the full playmobil line.  A brick and mortar store could not possibly do this without a substantial amount of space dedicated to Playmobil. 

As for prices, the independent small-shop toy retailers tend to be expensive for every toy they sell, due to their small volumes. 

I sympathize, though, with the pressure they must feel from competition with Playmobil USA.  If PM USA was truly dedicated to its retailers it probably ought not to compete with them (though I'm not complaining!)

But the rest of this thread sounds like rumor-mongering.  Can anyone cite a Playmobil policy or provide an email confirming the accusations that PM forces retailers to over-charge and carry the entire line?

-Tim

[Indianna]

Unless someone on this forum is actually a toy retailer and can speak from his or her own direct experience, obviously the remarks made here would have to be classified as "hearsay," but this is not exactly a court of law.    

Here is a link to a U.S. Dept. of Justice press release dated 1/31/1995 which describes the price-fixing case that Gepetto mentioned at the beginning of this thread:
http://www.usdoj.gov/opa/pr/Pre_96/January95/57.txt.html

Two significant points from this press release:

"If approved by the court,  the proposed consent decree between the Department and Playmobil would settle the suit and be in effect for 10 years.  The settlement bars Playmobil from entering into retail price agreements with its dealers and from threatening to terminate dealers from discounting."
This provision would have expired within the last few years.

and:

"For a period of five years, the decree would prohibit Playmobil from establishing a minimum advertised price policy that withholds advertising rebates from a dealer who advertises Playmobil products at a discount.  The five year prohibition would permit Playmobil dealers to establish their pricing levels in a market free from the taint of Playmobil's illegal price coercion."  (Emphasis added.)


Here's another item that summarizes the case, from an FTC commissioner:
http://www.ftc.gov/speeches/harbour/0403vertical.pdf  see page 16

United States v. Playmobil USA, Inc., 1995-1 Trade Cas. (CCH) ¶ 71,000 (D.D.C. 1995) (final
judgment).
Playmobil USA had maintained a Retailer Discount Policy that provided for the termination
of any Playmobil dealer that failed to adhere to certain Playmobil suggested price ranges.
In January 1995, DOJ filed a civil suit that alleged that Playmobil enforced this policy in a
manner that violated the antitrust laws by reaching agreements with some of its retailers
about what their retail prices would be. DOJ and Playmobil entered a settlement decree
prohibiting Playmobil from reaching agreements with its dealers on retail price levels, and
also from threatening dealers with termination for discounting off the retail price.

So, it seems to be well established that Playmobil did engage in price-fixing behavior in the past and that their agreements to stop doing that would have expired by now.

As to whether dealers were pressured to carry the full line, the info I have comes from face-to-face conversations with 5 toy store owners in the greater Boston area who all said this was the case.  Bear in mind, that would not necessarily mean every single item offered by Playmobil, but rather a large selection from every theme (one exception I became aware of was that a particular hobby shop was allowed to carry only trains.)  All of the stores whose owners I spoke to, and many other stores in the vicinity, used to devote very large sections of their stores to Playmobil and no longer do so.  In fact, many of them no longer carry any Playmobil at all.

[Rasputin]

Well I called Playmobil US and spoke to them directly concerning carring the Toy in a store .
First off you need a $2500 first order
Second you DO NOT NEED TO CARRY THE ENTIRE LINE thought they do encourage it
Third you have to be a Brick and Mortar and they discourage On line sales, and they do not sell to On Line Only shops