$31.00 per figure.................. (1 Viewer)

[nmrocks]

I recently spoke with a western manufacturer whose products are made in China about price increases in Chinese made goods. He told me that part of the increase is coming from the Chinese workers who have become better informed and like American workers are asking for higher wages commensurate with their rising consumer culture as well as health insurance and other benefits like the economic model they see in the west. As Chinese factory costs increase this will lead to additional increases in Chinese made products such as military miniatures. Perhaps if the price to manufacture such items in China gets too high we will see a return to more manufacturing in the west once again.

I understand the affluence you speak of is already causing manufacturers to look elsewhere for cheaper labor, I understand Africa and Southeast asia will be the next stop on the "Cheap Labor Train". Hopefully, someday, there will be no cheap labor due to impoverished conditions.
Ray

 

[jazzeum]

This may be the natural progression of things as countries are inaugurated into the industrial revolution. This happened with Western Europe, the USA, Japan and Taiwan.

 

[4th Hussar]

Workers want more money and the cost of petrol is hitting China as well as the West. materials and shipping costs are dependent on the cost of oil .

 

[thebritfarmer]

I know that Britains and K&C are compared differently but they both do produce toy soldiers at the end of the day.

In 2004 a mounted figure for the Jubilee series was $41.95 (exchange rate of $1.70 - £1)
The new mounted officer of the 1st foot guards (due to be released) is being advertised for $44.00.

Not much of an increase in 4 years.

Interesting though a Matte mounted figure is about 24 dollars more at $68.00 hmmmmm


Explain that then

 

[Louis Badolato]

I know that Britains and K&C are compared differently but they both do produce toy soldiers at the end of the day.

In 2004 a mounted figure for the Jubilee series was $41.95 (exchange rate of $1.70 - £1)
The new mounted officer of the 1st foot guards (due to be released) is being advertised for $44.00.

Not much of an increase in 4 years.

Interesting though a Matte mounted figure is about 24 dollars more at $68.00 hmmmmm


Explain that then

Is the paint job on the matt figure more detailed and thus more difficult to do? If so a matt figure might take longer and be more expensive to paint, therefore costing more.

 

[wadepat]

Is the paint job on the matt figure more detailed and thus more difficult to do? If so a matt figure might take longer and be more expensive to paint, therefore costing more.

Hi Louis,

I think theBritfarmer makes an interesting observation. Your response suggesting that matte finished figures might cost more to paint is presented as speculation. Do we know for a fact that painting a mounted matte figure costs more? And, if so, does it actually cost $24.00 more to paint? I have seen some wonderfully detailed glossy figures that I believe would be as difficult to paint and use as many different shades and colors as matte figures, yet the retail cost is significantly lower. Let me illustrate.

Beau Geste, which produces glossy figures in Argentina where labor costs are much higher than in China, lists most seven figure foot figure sets at $141.00 per set. These figures are nicely detailed and wonderfully painted. The average retail cost for each figure in the seven figure set is $20.14. Almost $11.00 cheaper than a matte figure produced in a lower labor cost country! While I am certain there are a multitude of reasons for this cost differential, it is nonetheless remarkable. It would be interesting to know all the factors that contribute to this cost difference.

Warmest personal regards,

Pat

 

[Pierre]

...It would be interesting to know all the factors that contribute to this cost difference.

(...)

Pat

Hi Pat-

Maybe the wages and bones of the CEO/owners are slightly different...

 

[redhugh]

I suppose every market has a "tipping point",even necessities such as gas/petrol by the sounds of it, wonder whether we are getting near it or have another bit to go yet in reaching the "tipping point" in toy soldiers?

 

[nasirkasmani]

its interesting to point that as i am interested in both the flamethrower and the running SS mg42 team @ $62 per set, i'll be paying K&C $US 124, a dollar short of HB, which pegs their 4 men figure set @ $US 125. Isn't the China labour cost supposed to be much lower than Argentina?

And another interesting point is that Figarti, operating in the same China/Hong Kong zone as K&C, still currently offers their 4 men figure set at $US 99.

maybe time to scout another factory?

 

[Njja]

Its probably a good time to get our economy back on track before a pack

of matches costs $10.

Wouldn't it be nice once again to go to a movie on a saturday night....

buy a large buttered popcorn and a nice soft drink and get more then loose

change back from your 50 dollar bill

 

[CrawlingGuy]

I'm still waiting on the "desiccated corpse" figure, AKA "Afrika Korpse".

Seems fitting to spend US dollars on something that is decaying and blowing away with the wind.

 

[Steven Chong]

... My question is this:
Has the cost of production actually increased by an appropreiate amount close to 24 percent or is K&C increasing its prices to not only meet increased production costs but to maximize profit margins on a per figure basis. In other words, was $25 a sales price that was cheaper than it should have been to meet K&C's profit margin goals?

And,

If fewer sets are sold at $62 for two figures, with a 24 percent price increase in one year, does the new price make the amount of profit close to the amount of profit for figures that sold at $50 per set a year ago?

As explained in an earlier post, K&C and other companies that produce toy soldiers in China and price their sets in U.S. dollars have lost 10% just from the depreciation of the U.S. Dollar vs. the Chinese Yuan over the last ten months and close to 20% over the last 2 years. As a result, 10% of the price increase from last year just allows K&C to make the same amount of profit it did last year without even looking at any increases in labor costs, materials and shipping.

If at least 10% of the price increase from last year results from currency depreciation, the remaining 14% price increase is easily explained by the increases in the cost of packing foam (oil-based so almost tripled in price in last 8 months), metal alloy (30% or more depending on metal in China though Fubar posted it has doubled in the US), and labor (basic labor cost plus higher cost of adding the details required by current collectors).

I am not privy to the breakdown of K&C's actual figure costs, but all of the above information can be gleamed from business publications or the internet. I believe the 24% price increase basically allow K&C to make maintain the same profit margin it had last year.

Collectors should also realize that manufacturing costs have been increasing the last several years, and that Andy has stated at several of his talks that K&C absorbed some of the past cost increases by reducing its profit margin and cutting other costs. If K&C had not tried to keep prices lower, the price for the referenced set should have been higher than $50 last year, and collectors would not have seen such a severe price increase.

I understand the affluence you speak of is already causing manufacturers to look elsewhere for cheaper labor, I understand Africa and Southeast asia will be the next stop on the "Cheap Labor Train". Hopefully, someday, there will be no cheap labor due to impoverished conditions.
Ray

At his talks, Andy has mentioned looking for factories in other countries like Thailand and Viet Nam. However, these countries do not have a similar pool of skilled artists like China that can produce the paint quality that collectors expect from K&C.

... And another interesting point is that Figarti, operating in the same China/Hong Kong zone as K&C, still currently offers their 4 men figure set at $US 99 ...

Most of K&C's factories are in the Guangdong area while Figarti is in Shanghai. While basic labor costs are actually higher in Shanghai, Figarti owns its own factory while K&C contracts out its production. Having its own factory allows Figarti to cut out a 3rd party factory's profit margin and produce figures at a lower cost. If Figarti produced K&C type polystone vehicles, it probably would be cheaper than K&C. However, Figarti choses to make vehicles with lots of detail like real rubber tires and hatches that open so the resultant vehicle costs more.

... Beau Geste, which produces glossy figures in Argentina where labor costs are much higher than in China, lists most seven figure foot figure sets at $141.00 per set. These figures are nicely detailed and wonderfully painted. The average retail cost for each figure in the seven figure set is $20.14. Almost $11.00 cheaper than a matte figure produced in a lower labor cost country! While I am certain there are a multitude of reasons for this cost differential, it is nonetheless remarkable. It would be interesting to know all the factors that contribute to this cost difference ...

Like Figarti, I believe the cost difference arises from Beau Geste producing its own figures in its own workshop -- a relatively small number of workers producing a relatively small number of sets. If Beau Geste had to produce the volumes of figures and sets like K&C, it would have to hire many more workers and have a much larger workshop, with the resultant manufacturing costs being much higher.

 

[Harrytheheid]

As explained in an earlier post, K&C and other companies that produce toy soldiers in China and price their sets in U.S. dollars have lost 10% just from the depreciation of the U.S. Dollar vs. the Chinese Yuan over the last ten months and close to 20% over the last 2 years. As a result, 10% of the price increase from last year just allows K&C to make the same amount of profit it did last year without even looking at any increases in labor costs, materials and shipping.

If at least 10% of the price increase from last year results from currency depreciation, the remaining 14% price increase is easily explained by the increases in the cost of packing foam (oil-based so almost tripled in price in last 8 months), metal alloy (30% or more depending on metal in China though Fubar posted it has doubled in the US), and labor (basic labor cost plus higher cost of adding the details required by current collectors).

I am not privy to the breakdown of K&C's actual figure costs, but all of the above information can be gleamed from business publications or the internet. I believe the price increases basically allow K&C to make maintain the same profit margin it had last year.

Collectors should also realize that manufacturing costs have been increasing the last several years, and that Andy has stated at several of his talks that K&C absorbed some of the past cost increases by reducing its profit margin and cutting other costs. If K&C had not tried to keep prices lower, the price for the referenced set should have been higher than $50 last year, and collectors would not have seen such a severe price increase.



At his talks, Andy has mentioned looking for factories in other countries like Thailand and Viet Nam. However, these countries do not have a similar pool of skilled artists like China that can produce the paint quality that collectors expect from K&C.



Most of K&C's factories are in the Guangdong area while Figarti is in Shanghai. While basic labor costs are actually higher in Shanghai, Figarti owns its own factory while K&C contracts out its production. Having its own factory allows Figarti to cut out a 3rd party factory's profit margin and produce figures at a lower cost. If Figarti produced K&C type polystone vehicles, it probably would be cheaper than K&C. However, Figarti choses to make vehicles with lots of detail like real rubber tires and hatches that open so the resultant vehicle costs more.

Steven,
Thank you for posting such a clear and informative message. Although it's inevitable that I myself can't help but be aware of most of the issues you have touched on, I'm certain sure that there are quite a few members of our collecting community who - aren't.

Regards
H

 

[Steven Chong]

Dear H,

When you transfer to China, you should ask for your pay in RMB.

 

[Harrytheheid]

Dear H,

When you transfer to China, you should ask for your pay in RMB.

I wish.....!!!
Even when I was previously assigned to China (1997-2000), living and working in Shenzhen, I was still paid in US$. Bummer, but it's just one of the delights of working for a USA-based company I guess.

Regards
H

 

[nasirkasmani]

Steven,

thanks for the well laid explanations, very clear and informative indeed.

This economic recession is really striking home now.

if this rise in cost is inevitable, then hopefully at least K&C will slow down on their monthly Retired items section, so that middle-income folks like me has more time to purchase.

sincerely,

nasir kasmani.

 

[Eazy]

You'd think that output may slow down too or maybe smaller numbers being produced?

 

[PolarBear]

Eventually the hobby will only be for the very rich.

 

[theBaron]

You can always take up painting and casting.

Prost!
Brad

 

[Louis Badolato]

Hi Louis,

I think theBritfarmer makes an interesting observation. Your response suggesting that matte finished figures might cost more to paint is presented as speculation. Do we know for a fact that painting a mounted matte figure costs more? And, if so, does it actually cost $24.00 more to paint? I have seen some wonderfully detailed glossy figures that I believe would be as difficult to paint and use as many different shades and colors as matte figures, yet the retail cost is significantly lower. Let me illustrate.

Beau Geste, which produces glossy figures in Argentina where labor costs are much higher than in China, lists most seven figure foot figure sets at $141.00 per set. These figures are nicely detailed and wonderfully painted. The average retail cost for each figure in the seven figure set is $20.14. Almost $11.00 cheaper than a matte figure produced in a lower labor cost country! While I am certain there are a multitude of reasons for this cost differential, it is nonetheless remarkable. It would be interesting to know all the factors that contribute to this cost difference.

Warmest personal regards,

Pat

Pat,

As I thought my post indicated (via words like "if so" and "might"), I was purely speculating in an attempt to explain why a glossy figure and a matt figure from the same manufacturer would be so dramitically different in price. Your point is well taken, but I think that Steven's subsequent post more than adequately explains the price differences between the various manufacturers.

No matter how you slice it, though, for those of us who have to concern ourselves with otherwise making ends meet (i.e. all but the independently wealthy) the dramatic (and continuing) rise in prices over the past couple of years is going to have an adverse effect on our lives in general, the lives of our families and dependents (most importantly), as well as our hobbies.