Discontinued Playmobil sets for sale at discounted prices (Canada)

[Wesley Myers]

The currency ratio is changing so rapidly almost minute to minute! Playmobil has a MSRP, but doesn't care about higher prices, just if a dealer is selling too cheap with discounts & gets complaints from other dealers, like what happened years ago to Ridge Road Station.

What happened with Ridge Road Station?  I presume they were selling Playmobil too cheaply?

[Rasputin]

Playmobil does not like companies to have a competitive advantage. All stores have to sell at a set base price. Now it would seem that Geobra does not even want stores to sell at all and makes the relationships strained. I guess it only helps their bottom line in some weird logic kind of way. If you buy on the web you could buy from a dealer and Geobra gets 50%-ish of the sale. Now if you go directly to Playmobil.com they get 100% of the same sale with most of the increase being profit.

You can not set up a web store at all with out a physical store front location that is approved

Toy costs $10 to make
sell to store for $20 = $10 profit for Geobra
store sells for $40  = $20 profit for store

Now if you buy it direct
toy still costs $10 to make
sell for $40 = $30 profit for Geobra, that is 3X more profit

Now this works as long as you have brand recognition and it stays healthy. The Brick and Mortar shops are closing at a fast rate the brand could lose new valuable customers. The old customers who are actually buying for kids will only buy for so long until they move to older aged subjects. If Geobra does not have its products in high end stores and only in TRU's (that is a different market that usually shops for price not quality) sooner or later you lose new clients. This is happening in the US and I do not know about other markets. A company need to keep its products in the face of new clients.  I guess they can turn to TV ads. 

[Bill Blackhurst]

It was in early 2008 I found RRS by accident while searching for Playmobil on line. I was catching up on the fire fighting theme. Their prices averaged a 25% -35% discount off of Playmobil's on line shop prices with free shipping, but these discounts were only offered on internet purchases. I bought quite a lot from them in that year. Then all of a sudden their prices reflected a higher retail price than even Playmobil on line showed. I called & asked what happened to the discounts & I was told by a phone order processor that Playmobil had gotten complaints from competing dealers, that RRS was selling below their contracted retail prices with shipping benefits, & they wanted actions taken. When RRS's franchise renewal came up for consideration they were told that their pricing would need to follow the Playmobil franchise rules, or the contract would not be renewed. Their sales have continued to decline, & the inventory was not turning over as it had in the past so we have lost another brick & mortar PM dealer.

[Playmoholics]

Their sales have continued to decline, & the inventory was not turning over as it had in the past so we have lost another brick & mortar PM dealer.

Now it says on the website that RRS is closing its doors because the owners are retiring 

[Bill Blackhurst]

Now it says on the website that RRS is closing its doors because the owners are retiring 

It's a shame they didn't sell it to other dedicated toy enthusiasts, or let family members take over.

[Playmoholics]

It's a shame they didn't sell it to other dedicated toy enthusiasts, or let family members take over.

It is very sad. It seems like selling or a takeover of sorts would be profitable as well 

[bonniebeth]

Wow, that really is a shame. I hate to see a family-run business close. 

[Wesley Myers]

It's a shame they didn't sell it to other dedicated toy enthusiasts, or let family members take over.

That happened locally with TWO of the best hobby shops.  The first one, Handicraft Supplies, was closed and all the merchandise auctioned off.  It was a sham, actually, as I was at the auction and bought a fair amount, but the auctioneers somehow rigged a deal with Ross Robertson, the owner, and they shut down the auction early announcing all the remaining merchandise had been bought.  Turned out it was the auctioneers themselves who took it all.  I never bothered to follow up on any of it.  I was too angry.

The thing to the auctioneers is that I found out after that Ross didn't think his olde stock in the basement was worth anything because it was old so he threw it all out.  A full rental bin in the alley full.  I was in the basement shortly before it closed and the whole basement of the store was filled with shelving FULL of old model kits from the 50s and 60s and 70s.  At least they auctioneers didn't get any of it. 

Anyway, he just closed his doors instead of selling it to his employees or someone else who would have operated it. 

Broadway Hobbies and Crafts went the same route.  Except the employees approached the owner to buy it from her and she refused to sell it to them.  Repeatedly.  She kept on telling them that nobody would want such a place.  Even though they had everything arranged to buy it.  It makes no sense.

So now the city is stuck with one place that's only okay.  They cater to RC and that's about it.  That was their key selling point when they were in competition but they didn't think beyond their old ways and expand out to cover the models the other places were selling so now we have a pretty poor hobby selection in the city.

As for the prices, maybe that is why Indigo and Chapters now has prices the same as Playmobil instead of being significantly cheaper on the big sets...

[Bill Blackhurst]

Really sad! It's a shame we aren't real wealthy so we could buy toy stores like this as a Playmofriends investment corporation, investing in mortar toy stores like RRS!

[Playmoholics]

Really sad! It's a shame we aren't real wealthy so we could buy toy stores like this as a Playmofriends investment corporation, investing in mortar toy stores like RRS!

I think you're on to something, bill