Two points. Some of these items were originaly made five years ago, probably others two, three and four years ago. However, during that time prices were not increased. However, the cost to make them was.
I doubt that any product was ever made a loss.
Isn't the wider issue that the pieces gathering dust on dealers shelves now represent exceptionally good value. So those with limited budgets are picking off these pieces rather then the newer sets. Which merely from their date of manufacture were more costly to produce.
One only has to look at K&C UK's price list to see the wide variety of (increasing) retail prices on single figure sets for example. Which indicates that stock has been sitting in the warehouse for some considerable time. This isn't re-run production (as the retail price would have risen).
Investing in K&C sets rather than collecting as a hobby seems to have become prevalent. I would be a rich man for the number of times I've heard that the sets described as "investments". One for the collection , one for the pension fund. Downside is K&C produce the sets to satisfy demand. In reality demand isn't there. Collectors have made their own self inflating bubble. Yes, some pieces will command premium price but other will fall by the wayside.
Like any business K&C will occassionally produce product that receives insufficent demand. The problem is how to offload it without devaluing the brand.