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EG is Hasbro's most profitable MLP product?


Avatar tag: shipping

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I keep hearing this line being thrown out there like a harbinger of doom. "EG is making Hasbro more money! FiM is dead! Abandon ship!" What's my reaction upon first hearing this news? AAAAAAAAAAAHHHHHHHHHHHHH!!!!!!11!1!1!1!!!2. DO NOT WANT!!!! SAVE A LIFEBOAT FOR ME!!!!

 

But a funny thing happened, I thought about what they were saying. The claim is that the EG toy line is a more profitable product than their ponies. It sounds alarming at first, I know I shat a few bricks, but let's take a deep breath, change our pants, and take a look at this a little closer.

 

By "more profitable product" they mean that they are making more money per unit than any other product they make. However, "most profitable product" is NOT the same as "most profitable product line".

 

Let's take a look at the EG dolls. They usually retail for around $20. Between manufacturing costs, packaging, shipping, marketing, etc they probably cost around $12 to produce. That's a profit of $8 a unit. Not bad, not bad at all.

 

Let's take a look at your standard brushable pony. They usually retail around $7. Let's look at costs: they've had 20 years of experience in how to lower the manufacturing costs, packaging is smaller than the dolls and therefore cheaper, shipping is less because they can pack more ponies in a box than dolls, and the brand has been around for 20+ years so it's well established and needs little marketing. With all that taken into consideration, the ponies probably cost about $3 to make. A profit of $4

 

Only $4 per pony? The EG dolls make double that! Abandon ship! Well hold on. While the dolls make more money per unit, they're also more expensive to buy. Let's say a kid is given $25 for her birthday and she needs her pony fix. She goes to the store and sees a Rainbow Dash EG doll for $20. Perfect! But she also sees a Rainbow Dash pony for $7. And an Applejack pony for $7. And a Twilight pony for $7. That's $21, I have enough for 3 ponies! Yay!

 

If she buys the EG doll, Hasbro will make $8. If she buys the ponies, Hasbro makes $12. See where I'm going with this? Toys are a volume game. They need to sell as many toys as they can to make money. Therefore cheaper toys make them more money. Plus, the pony line has been established for years. Mothers who grew up with the ponies are going to get their kids what they grew up with: Ponies! Not the dolls.

 

It's like Chevy and Cadillac for GM. Cadillacs make more money per unit for GM, but the volume of sales Chevy has makes way more money. Does that mean Chevy is going to get rid of either one? Hell no!

 

Whether you like EG or not, EG is the one that has to prove its worth here. It's a new IP in an over saturated market. The ponies are a long established guaranteed seller that makes bank when there's a show to support it. So let's all breathe easy knowing that FiM and it's ponies aren't going anywhere.

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I'd just like to point out, as the owner of a Rarity EQG doll, it cost me $25. I also own 5 Rarity brushables, and paid five dollars a piece :D 

The dolls are more expensive, and therefore probably make more money :D They're also pretty popular with the younger fans of the show, it seems :D Even though it doesn't feel that way at times, there's fans of the show that aren't bronies :D

 

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I was just using prices in my area. What I was saying is some of us Bronies are freaking out for no reason. When it comes to toys, it's the non brony fans that buy the most. Though I don't want to admit it, you're right. EG is popular with the target demographic. But when it comes to sheer volume, the pony toys are what's making them money. The EG dolls may make more per unit but when they sell 3, 4, or more times as many ponies, where's the money at?

 

I don't buy any of the toys for myself but i do for my niece. (I've used that excuse before but I'm telling the truth now, honest) I buy the merch marketed towards us. My point, which I admit became a little muddy, was that people think that FiM is going away because EG dolls make more money per unit and that it's not true because ponies make them more money overall. So why would they get rid of what's making them stupid amounts of money?

  • Brohoof 1
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The toy may be more profitable.... But when you figure in shirts, funko, glassware, and the tv show itself..... Mlp FIM makes HAZBRO far far more money than eg ever will.

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Exactly. Hasbro has already stated that they're planning on keeping the current gen of mlp around for another 5 years. This is the same Hasbro that planned on only having 2 1/2 seasons and a movie then getting rid of the series and here we are just finishing S4 with S5 confirmed and on the way.

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