TVC and Tariff Pricing

[Jeff]

Not a positive to see EE bump TVC up to $19 each for today's pre-orders and slap an extra 10% tax onto the Landspeeder ($67) compared to Pulse ($60).  Not sure if that is tariff related or not...

[Nicklab]

I was thinking that the $19 was almost certainly tariff related.  Hasbro Pulse has the benefit of them cutting out the middle man, so I think they can eat the tariffs for the time being.  I think Hasbro recognizes that raising prices could create a really negative perception issue about the company really fast.  The short-term loss of the tariffs VS the long term prospects for the company have to be weighed carefully.

[Dave]

Everybody get the email from BBTS about tariffs driving price increases for your favorite toys?  They're going to add a specific line item for tariff fees that they say will add 15-40% in the price of toys.

Jeff and I were ranting a bit about it in the Sarlacc pit as it involves the whims of our dear leader Trump.

Sarlacc Pit

We can discuss in either or both places, but looks like this is going to be a real thing for the collecting community going forward.

[Rob]

I don't have anything ordered with them so I haven't, but it's no surprise at all.  It's only a matter of time before those deluxe prices apply to basic figures with Hasbro too.  104% tarrifs can't be absorbed. 

Good on BBTS for putting it as a line item so everyone knows who's to blame.  Politics as aside as I can, none of this is necessary and none of these companies or stores are going to want to take the blame for it when they start getting calls from angry customers.

[Jediknight760071]

I don't have access to the Sarlacc Pit, so I apologize if this shouldn't be posted here.
My question is, I had heard that Hasbro moved production into Vietnam and India. Theoretically, if tariffs are 'paused' would that mean Hasbro can avoid this 100%+ trade war, or was the Vietnam/India news more PR than actual production?

This week has been an emotional and financial rollercoaster.

[Dave]

I don't have access to the Sarlacc Pit, so I apologize if this shouldn't be posted here.
My question is, I had heard that Hasbro moved production into Vietnam and India. Theoretically, if tariffs are 'paused' would that mean Hasbro can avoid this 100%+ trade war, or was the Vietnam/India news more PR than actual production?

This week has been an emotional and financial rollercoaster.

You can apply for access to the Sarlacc Pit if you want to.  The default is no access, but just ask if you want access.  Its usually not too messy in there.

A couple of challenges with ever shifting tariffs and Hasbro:
- Hasbro overall has 40% of production still in China.  Its hard to tell how much of Star Wars is there vs. Nerf and other things.
- Tariffs are charged on the import date, so today there may be 100% tariffs, and next week it might be 20%, and then later in the year it could be something different.  Retailers, consumers, etc. can't easily plan around this ever shifting unknown.
- Running a business with such massive unknowns is really, really hard, and a lot of consumers won't understand what is going on.  They'll think, "I preordered this for $18.  Why am I being charged $27?  I'm getting screwed by Hasbro/BBTS, etc."  I think you may also see price guarantees like Amazon's go away, or they'll add line item "tariff passthrough charges" like BBTS.

[Jeff]

My question is, I had heard that Hasbro moved production into Vietnam and India.

Hasbro has diversified some SW stuff into Vietnam.  Mainly the much simpler stuff.

I think it was around 2015/2016 that I first noticed the occasional "made in Vietnam" on packages -  Stuff like the Rogue One 2-packs.




I think right now, most of the TVC Stuff is still made in China because the level of quality/parts/paint requires more experienced factories while most (if not all) of the Epic Hero 4" scale stuff is made in Vietnam, like Boba Fett here -

[Dave]

I did a quick check of a couple dozen TVC and Disney Droid Factory figures I had laying around from the past couple of years and I couldn't find anything that wasn't "made in China".

[Muftak]

In general, TVC and TBS are made in China, while Retro and Epic are made in Vietnam. iirc.

[Jediknight760071]

[Jediknight760071]

That prompted me to take a look at some of the other lines and sure enough, some of the Solo movie products were also made in Vietnam.
While the 'Solo' Millennium Falcon and basic figures were made in China, the Enfys Speeder, Han's Landspeeder, AT-DT, Tie Fighter and their accompanying figures were all Vietnam. The 2-packs seem to be Vietnam as well, except the C3P0/R2 pack.

Those sculpts and paint applications weren't bad at all, just the articulation was lacking. They remind me of some of the POTJ figures from 2001. Especially that Enfys Nest figure.
With that being the case, I wonder where the Cantina is being produced and distributed from.
Maybe TVC can be shifted over if this mess doesn't resolve quickly. If that's the case, however, we will probably have a lot more to worry about than TVC.

Thank you Jeff, Dave, and Muftak for the info!

[Rob]

Dear Valued EE Customers,

I want to update you on the current environment (specifically related to new tariff policy) and the impact it is having on our business and our pricing.

Since February, the Entertainment Earth team has been working as hard as possible with our vendor partners and internally to absorb as much cost impact as possible. Unfortunately, we cannot absorb all of the cost increases/tariffs, particularly on products coming from China.  Additionally, the current situation is preventing many retailers (ourselves included) from importing product from China which will impact timing of product receipt.

A few things to know:

You will be receiving information in the coming days on price increases and/or delays based on cost increases from vendors and/or tariffs.

To protect you and your purchases, you will be able to adjust your orders without penalty, as we understand the new costs may impact your ability/desire for these products.

If the environment changes and we have the opportunity to reduce prices, we have every intention to do so based on positive changes in the cost structure of toys. Our goal is to support you in building and growing your collections.

Entertainment Earth was built by fans with the singular purpose of bringing pop culture joy to all of you. As fans and collectors ourselves, it truly pains us both personally and professionally not to be able to deliver amazing collector products from so many terrific partners at prices that meet your (and our) expectations.

Please know that we continue to advocate for improved pricing from all possible partners, that we continue to “tighten our belt” as much as possible to serve you, and that if we see positive changes that can lower price, we will pass them on.

Thank you deeply for your continued support and partnership. As always, please feel free to reach out to our team with any questions.

Best regards,
Billy Lagor, CEO Entertainment Earth, and the EE Team

[McMetal]

Ugh, I have two different things on PO with them right now, I better find other options I guess. 

[Rob]

It’s going to be the same story everywhere before too long.  Every importer is facing the same challenge.

[Jeff]

I spun all the tariff talk from a couple different threads into one - not surprised to see EE follow the same path as BBTS.  Pretty sure others (are there really any others these days?) will follow suit as well.  Amazon and Pulse can probably hold out longer given their sizes.

Let's hope it all gets resolved to some level of satisfaction before it starts to really cause issues (thinking about how tariff charges may impact my ability to get that HasLab Cantina this Fall).