Plastic Goldmine- The cost of toys
As the holiday season quickly approaches, children around the world are writing their letters to Santa.
The toys that young ones craze over are quite costly. Why are toy stores plastic goldmines?
Darren Chapman, an Economics Professor at the Lawrence Kinlin School of Business, explains that “Toy companies increase their prices, but it’s not because that they’re doing anything nefarious, it’s because consumers are willing to pay those prices. ”
The latest toy this holiday season is the Hatchimal. A toy that resembles the Furby, a retro toy. This toy in particular is selling for two hundred to three hundred percent mark-up on sites such as e-bay for for hundreds of dollars.
Chapman says that parents need to create their children’s expectations around the holidays, not the other way around. He adds that young families shouldn’t compromise their financial situation over a toy that their child will get bored with within a few days.
Chapman says, “The number one thing, especially during the holidays, is not to go into debt. That basically means setting up your budget way ahead of time, and actually starting to look at your budget for Christmas or the holidays in January when the big sales are.”
Theda Hansler, long time toy expert who works at Hobby & Toy Central, says parents are looking for longevity when they purchase holiday gifts for their children, “It all depends on the quality. We carry a lot of wooden toys here and a lot of high quality stuff and that’s what parents are looking for, they’re looking for stuff that will last from child to child.”
Hansler adds that there’s a toy for everyone’s budget. Sometimes a simple board game for $5.00 will bring family and friends together, and entertain children for hours.