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Kraken
Federated Suns
Marshal
Joined: 04-Feb-2002 00:00
Posts: 2755
Location: United States
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 Posted: 29-Oct-2004 07:37 Post subject: KB Toys closing even more stores |
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If anyone here has any little kids, keep an eye on the local KB Toys store. They've announced that they're closing down yet another wave of stores, so you'll probably be able to get them some good stuff for cheap.
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"I wish I could write as mysterious as a cat." -Edgar Allen Poe"I knew there was something special about you, but I never realized you were really a cat." Wolfwood to a random cat (Trigun)
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Vampire
Free Worlds League
Lieutenant Colonel
Joined: 05-Feb-2002 00:00
Posts: 917
Location: Spain
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| Posted: 29-Oct-2004 13:14 Post subject: RE: KB Toys closing even more stores |
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I'm a callous bastard but I find your post disturbing. You resemble a carrion eater vulture. People are losing their jobs in those stores and you only think of the toys you can pick up cheap?
You needed that reality check.
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Memento audare semper
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Oafman
Draconis Combine
Tai-sho
Joined: 18-Nov-2003 00:00
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Location: United States
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| Posted: 29-Oct-2004 14:51 Post subject: RE: KB Toys closing even more stores |
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reality check?
Just because he mentions saving money on toys for a store closing does not mean he is callous to the people losing their jobs. (I should know, I worked for several stores that closed while I was working there.)
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Festina Lente!
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Kraken
Federated Suns
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Location: United States
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| Posted: 29-Oct-2004 15:08 Post subject: RE: KB Toys closing even more stores |
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Understand that I'm coming at this from the perspective of a business student.
Up until the early and mid 1990s, KB Toys and its affiliates pretty much owned the US toy market, with mail-in organizations (like Sears and Service Merchandise) rounding things out.
In the mid 1990s, Toys-R-Us and Wal-Mart had a massive period of growth. As many of the mail-order organizations had shut down or seriously curtailed operations, this left no protective bubble for KB. Gains made in the market by those two companies ate at KB.
In an attempt to gather more of the market back, over the last few years KB toys has begun to offer more chain-exclusives; however, many of these exclusives have flopped leaving KB stuck with a considerable amount of unsold merchandise (I recall my local KB having some exlclusive G. I. Joe figures for the better part of three years because they were that unpopular), adding to their woes.
To make matters worse, unless they are having a clearance KB toys usually does not lower their prices; as their prices are often higher than their big-name competitors, they often lose out business there. Thing is, they need those higher prices to stay in business. It's a lose-lose proposition.
Over the past few years, KB toys has made two decisions in an effort to cut their lossess. First off is that they've made arrangements with Sears to have small toy sections in select Sears stores, especially around Christmas time. Although Sears will carry and sell the items, KB will get a share of the money. The other is that they will take those stores that are performing poorly and shut them down, diverting operating funds and inventory (and quite possibly employees) to those stores that are more successful.
In other words, it's business at work.
While it is unpleasant when people lose their jobs, it is a natural part of the business cycle: either you stay ahead of the pack, or the pack has you for lunch. The only thing you can do when that happens is to scavenge what you can from the remains.
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"I wish I could write as mysterious as a cat." -Edgar Allen Poe"I knew there was something special about you, but I never realized you were really a cat." Wolfwood to a random cat (Trigun)
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Vampire
Free Worlds League
Lieutenant Colonel
Joined: 05-Feb-2002 00:00
Posts: 917
Location: Spain
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| Posted: 29-Oct-2004 16:26 Post subject: RE: KB Toys closing even more stores |
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Ok, I stand corrected. I overreacted, but it's because whenever I pick up a book cheap or some other bargain, I realize I'm holding a product that didn't sell... in short, I'm stealing the author.
But forget it.. there are worse things happening.
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Kraken
Federated Suns
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Joined: 04-Feb-2002 00:00
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Location: United States
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| Posted: 29-Oct-2004 18:25 Post subject: RE: KB Toys closing even more stores |
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Not always.
Most chain stores have already paid the manufacturer for the goods that they sell well before the item hits the shelves; some stores have it set up so that when a certain number of units of a specific item sell, the system automatically orders more. Because the manufacturers have already been paid, the creative talents also have already gotten their agreed-upon share.
These stores then take the item, and put it up at a certain mark-up rate. This mark-up rate reflects what it costs the store to keep the item in the inventory. Once this mark-up is in place, a second mark-up is performed; it is from this second mark-up that the stores get their profits.
When an item is on sale, the sale price is the first mark-up; in other words, it's at the price that it cost the store to have the item on the shelf in the first place.
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"I wish I could write as mysterious as a cat." -Edgar Allen Poe"I knew there was something special about you, but I never realized you were really a cat." Wolfwood to a random cat (Trigun)
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Oafman
Draconis Combine
Tai-sho
Joined: 18-Nov-2003 00:00
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Location: United States
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| Posted: 04-Nov-2004 09:09 Post subject: RE: KB Toys closing even more stores |
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I have to agree with Kraken. My wife and I own a small business. We sell products at SCA events ont he weekends. After 4 years in business we have products that we are selling for below the wholesale cost just to get rid of them. The company we bought them from got paid 4 years ago. When you buy from the sale racks it is the retailer that is losing the money, not the manufacturer.
I personally feel bad that people are losing their jobs with these closings, but inorder for me to keep within my budget and not get deeper into debt I am forced to buy at the lowest cost possible.
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Kraken
Federated Suns
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Joined: 04-Feb-2002 00:00
Posts: 2755
Location: United States
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| Posted: 05-Nov-2004 18:14 Post subject: Consignment |
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There is also something known as consignment.
What happens is that the merchant takes the item from the source, with a promise to pay the source once the item sells. Usually, this is something that you'd only see with a used car or used machinery lot.
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"I wish I could write as mysterious as a cat." -Edgar Allen Poe"I knew there was something special about you, but I never realized you were really a cat." Wolfwood to a random cat (Trigun)
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SaberDance
Federated Suns
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Joined: 07-May-2004 00:00
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| Posted: 06-Nov-2004 22:05 Post subject: RE: Consignment |
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Can't speak for toys, but bulk-buying outfits (like book sellers) buy a lot at a fixed price, which gets them a discount on the books. The trade off is that the publisher gets a cut of the profit.
In the end, it probably comes out as a wash, but the publisher does it because books have a limited shelf life (at least, most of them do. Who's going to buy "Unfit for Command" now?) In theory, the publisher can unload the books he's already paid to produce and make up the rest profit shares. If the book overstays its time on the market, the Publisher can cut their losses and stick the seller with the bill.
Sellers go for it because once the cut of the profit is paid, they get everything on that lot.
It's a little like betting on the popularity of a book.
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"Politics is the Art of looking for trouble, finding it everywhere, misdiagnosing the problem, and applying the wrong solution."
-Groucho Marx
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