It's a tough environment for sure, but I'm not sure much can be done about it. All these big companies have goals to increase margin percentages (vs. overall profit). I know they fall back on rising production costs, and I'm sure those are increasing, but what they don't talk about is their internal need to make higher percentages on new items as well. Margin percent growth is typically tied to senior leader compensation and is highly valued by Wall Street Analysts for stock price growth, so most big companies tend to focus on growing the margin percent versus the overall profit.
For example, let's say a figure used to cost Hasbro $5 to make. If they made a 50% margin, they would sell to retail for $7.50 and if retail sells at a 50% margin, our cost was $11.25.
Now let's say that same figure costs $7 for Hasbro. We don't just see the price go to $13.25. Hasbro's margin target has maybe moved to 75%, so they sell to retailers at $12.50. Retailers want higher margins as well, so if they also have a 75% mark up, now our price is $21.40.
We're paying $10 more per figure in this example, but the cost is only 20% of the increase. The rest is all higher margins demands.
Even if they could get lower production costs, they're not going to move backwards on their margins.
