Wouldn't most consumers pay two whole dollars for one?
Seems like a very reasonable way to patch holes in this titanic.
Not a new idea, so curious why this hasn't happened?
4 replies (most recent on top)
This idea not only has been thought of before, but it's been tested several times. When the cars go above the .99 price, the volume drops disproportionately and the loss in factory efficiency (since we own many of the factories that make HotWheels) would be devastating to the bottom line.
Owning your own factories can be a blessing and a curse. It's a blessing because you can control costs and capture manufacturing profit. It's a curse because when volume or margin drops, then you are still stuck with the cost and overhead of the factory, with less revenue to absorb it.
You must be in your 20's and clearly in experienced to ask such a question. The collector part of the business actually keeps HotWheels afloat as those particular, higher-priced products, make a lot more money than the basic .99 cars. Stop being so naïve and use the calculator app on your frickin' iPhone for once, Einstein.
Coz Walmart?
screw tom daniel and ed roth, why pay more licensing fees so the 30 old timers still alive who remember those jack wagons can buy tiny versions of their hot rods. pure waste. let's dig a deeper hole with that idea.
More important, why don't the people running that business know who Tom Daniel or Ed Roth are?