The Facts of Life… and Business (1 Viewer)

King & Country

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Hi Guys,

If I may let me interrupt the ongoing debate with the following:

1. No one… K&C, dealers, collectors, manufacturers likes to raise prices. It can and does raise a “firestorm” of protest from all corners.

2. However, cost do rise and… after all adjustments and accommodations have been made a part of that “rise” has, alas, to be passed on to the consumer.

3. Companies that fail to do this through either fear of the negative reaction or timidity on their own part will, quite simply, go out of business.

4. All manufacturers producing in China have seen the growth in costs and prices in both labour and raw materials over the last 5 years. Many of us have “absorbed” these extra expenses and not passed them on to the end user.
However there comes a point when that is no longer possible… especially with older items.

5. Which brings me to production… As both Brett, Tony and others have clearly stated when K&C produce any item we do not, unless it is an SL piece, produce a finite number.
For most new figures we will only produce between 500-1000 pieces… Depending on popularity and subject matter that may last 3-6 months. After that we re order… and re order… and re order over a number of years. I wish the factory could always make that figure at the original price… but often they cannot because of their own rising costs.
K&C however have often kept that piece in their catalogue at the original list price until it is either “sold-out” or “retired”.

6. In the case of the older products that we have announced prices rises on that is why we have given dealers and collectors two month’s advance notice of the price rise to allow those that are still interested the opportunity to obtain the said items at the original list price while stocks last.

7. I would expect that most of the affected items will be retired in the near future to allow us to make room for new items.

8. At this moment K&C may be the “whipping boy” for raising prices however you can be sure as night follows day that our competitors will not be far behind… no matter what some may say.

9. Will these new prices force some collectors out? Sadly, of course it will that’s inevitable.
Will other collectors cut back and become more selective? Yes, and that may not be such a bad idea considering space and financial restrictions all of us have.
Will it damage K&C? Perhaps, in the short term but taking a longer perspective it will actually strengthen the company. None of us like the taste of strong medicine but it’s better to swallow it and get it down than spit it out and suffer the consequences.

10. Toy Soldier collecting has never been a cheap hobby but it’s still an exciting one that gives thousands of collectors around the world much enjoyment and great pleasure.
In order for the hobby and business to continue to grow and expand it requires companies that are innovative, productive, imaginative and… healthy and that takes… money.

If, as I am sure, there are forum members out there, who believe I’ve got it all wrong then as I have repeated on numerous occasions… Prove it! Take your own hard-earned savings and invest them in a little toy soldier company of your own… Put your own sign above the door and go for it… Show me, show the other collectors on this forum and show yourself how to do it better… cheaper… more reliably and 101 other things that go into making a successful, well-run company!

This forum is a wonderful, free asset to this hobby and business and allows collectors, dealers and manufacturers an opportunity to communicate directly with each other on a regular basis. I would like to thank Shannon, Pete and Treefrog for creating it and give us all our own personal “soap box”… Over and out!

Andy C.
 
Well and cogently put.

I had just posted in the other thread that you deserved some credit for keeping the prices were they were even though the cost to make them had gone up. Credit not brick a bats :)
 
unfortunately things do go up and rarely go down....business is business ...I know I have become a little more selective in my ordering .......being Canadian and having to pay in American dollars has had it.s up and downs ...now the dollar is almost at par but I remember paying over 40cents on the dollar extra to order.....that will never be recouped ....but I love this hobby.....I will not stop collecting but will be more selective .......:D
 
Sounds like it is time to start a vegetable garden, raise some chickens and dust off my shotgun for hunting
 
In my business we do a good amount of manufacturing in China. I can confirm that labor, utilities and raw material costs have gone up steadily.
The conundrum is how to control or pass on these higher costs in a tough economy.
Unfortunately the toy soldier industry involves a high degree of manual labor.
K&C could consider moving some production to a lower cost region like Vietnam. The logistics and the learning curve would probably negate the lower labor costs, however.
As the prices get higher some of the manufacturing may ultimately come back to Europe and North America.
 
In my business we do a good amount of manufacturing in China. I can confirm that labor, utilities and raw material costs have gone up steadily.
The conundrum is how to control or pass on these higher costs in a tough economy.
Unfortunately the toy soldier industry involves a high degree of manual labor.
K&C could consider moving some production to a lower cost region like Vietnam. The logistics and the learning curve would probably negate the lower labor costs, however.
As the prices get higher some of the manufacturing may ultimately come back to Europe and North America.

have to agree as china grows there will be a time where they Bust and then your back to the drawing board. However in the UK a lot of the trade guys have gone moved on. Infact funny enough i have a friend who is getting paid more being a HR director in China now than he was in Germany and the UK!!

Tony
 
Quote--{ If, as I am sure, there are forum members out there, who believe I’ve got it all wrong then as I have repeated on numerous occasions… Prove it! Take your own hard-earned savings and invest them in a little toy soldier company of your own… Put your own sign above the door and go for it… Show me, show the other collectors on this forum and show yourself how to do it better… cheaper… more reliably and 101 other things that go into making a successful, well-run company!



Well....it may not be to far off in the future, when a U.S. start-up company takes on making TS here in the U.S., now that the Dollar here will shrink in value and imports will become even more expensive, for actions taken be the U.S. Federal Reserve flooding new money ($600.000.000.000) into the economy....perhaps that's the "real" motive behind K&C raising prices.?

It's no secret, to anyone that produces TS, in China, that K&C will match anything they produce in a effort to shrink their business.

K&C could save a bundle of money, and pass on the saving in the form of lower prices, just be cutting back it's massive overhead, aka.. fancy brochures, lifesize cut-outs and overdone presentations, all of which just seem to result in everyone paying 20-30% more, just for the K&C name...
 
K&C could save a bundle of money, and pass on the saving in the form of lower prices, just be cutting back it's massive overhead, aka.. fancy brochures, lifesize cut-outs and overdone presentations, all of which just seem to result in everyone paying 20-30% more, just for the K&C name...

Might the success of K&C be due in large part to the quality of their advertising and marketing? I don't think it's a coincidence! Is there a cost...yes, there sure is. Does the cost lead to increased sales and more profit? Yes, there sure is. Is one figure 20% higher because of it? I don't think so.

When times get tough everyone clammors to cut advertising and promotions, which (in the long run) only hurt any business. If that advertising and promotion is effective it more than pays for itself.
 
Rising costs in China are the problem of the folks who choose to do business there. Given that most or all of the manufacturing jobs in the US have gone to places like China, it's particularly rich to hear that we now have to pay higher prices because they are experiencing a labor shortage. That is Andy's problem and not mine or any other collector. The notion that KC has been keeping prices down is incorrect. This price increase is new only to the extent that it brings the price of older sets up to higher prices that KC already charges. You don't need to look any further than the Nov. dispatches with a $400 flak gun including the extra figures to get an idea of whether KC has raised prices. Whether any collector chooses to pay that amount is up to the individual collector, but KC has steadily increased prices over the past few years. And this announcement is just consistent with that policy.
 
Might the success of K&C be due in large part to the quality of their advertising and marketing? I don't think it's a coincidence! Is there a cost...yes, there sure is. Does the cost lead to increased sales and more profit? Yes, there sure is. Is one figure 20% higher because of it? I don't think so.

When times get tough everyone clammors to cut advertising and promotions, which (in the long run) only hurt any business. If that advertising and promotion is effective it more than pays for itself.

I agree, I see the point Paul is trying to make about making savings, but speaking only for myself I enjoy the whole package from K&C that includes the collector, flyers and leaflets etc.

Rob
 
Dear Andy:

Some months back there was an article in our local area newspaper, I believe it was in the "Business" section, that noted increased labor (labour if you prefer) costs going up a lot in recent years in China. Alas, I have nothing to say against any of your comments in your "The Facts of Life...and business" posting#1. In any case, thanks for the 2 month advance notice for the across the board price increase to take effect 1/1/2011.

"Iron Brigade" / Gary
 
Marketing helps but a product usually sells itself. I can have the greatest marketing, etc. in the world but if the product isn't very good or nobody wants it, marketing isn't going to help it. K & C sells because they make products that people want, plain and simple.
 
Perhaps its something companies can look at as a way to keep costs down. 27 years as a market leader in a niche hobby means that everyone is well aware of K&C and, with the internet is there a need to spend vast amounts like 20/30% alluded to by IXEC? if, thats near what is spent
Mitch
 
Marketing helps but a product usually sells itself. I can have the greatest marketing, etc. in the world but if the product isn't very good or nobody wants it, marketing isn't going to help it. K & C sells because they make products that people want, plain and simple.

I concur- I have worked for some of the largest public accounting firms in the world and they spend next to nothing on advertising.

Ironically enough, I have actually looked into starting a small TS company using artisans in central and south america- developed connections with an entity I audited in DC that assists in economic development in those areas. Pretty interesting to see the scenarios I was looking at

BUT.............. wouldn't hold my breath...decided to launch out on my own in public accounting and that is taking enough time and energy :D:D
 
No one likes higher prices. However, I have spoken with both Andy and John Jenkins on this issue and the vissitudes of doing business in China. I'm satisfied that Andy is neither gouging us or missing some huge cost savings. It is what it is. If you feel you can do better at running a toy soldier business, start one and make your own pricing calls.

Some of us here need to get over ourselves and re-connect with the real world. If prices go up, which they will inevitably do, adjust accordingly and stop taking it personally. Buy what you can afford and enjoy it.
 
Marketing helps but a product usually sells itself. I can have the greatest marketing, etc. in the world but if the product isn't very good or nobody wants it, marketing isn't going to help it. K & C sells because they make products that people want, plain and simple.

You can have the best product, but if knowbody knows about it, it cannot get sold. At the shows, people that did not know King & Country will after it. The displays and presentation make a hugh impression, the marketing is not for the loyal customers, its for the elusive new breed.
 
I concur- I have worked for some of the largest public accounting firms in the world and they spend next to nothing on advertising.

"Largest" may have something to do with the need to spend little.

Though even Apple still finds the need to promote new product even though the diehards will queue up to buy.

Never take your customers for grantidge. As there's always someone else ready to step in and take their money.
 
No one likes higher prices. However, I have spoken with both Andy and John Jenkins on this issue and the vissitudes of doing business in China. I'm satisfied that Andy is neither gouging us or missing some huge cost savings. It is what it is. If you feel you can do better at running a toy soldier business, start one and make your own pricing calls.

Some of us here need to get over ourselves and re-connect with the real world. If prices go up, which they will inevitably do, adjust accordingly and stop taking it personally. Buy what you can afford and enjoy it.

Amen.
 

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