Last year, STEM’s buzzing products hit U.S. retailers with $34.95. In most cases, the product is priced quite considerably and offers reliable value. Amazon’s surprise price then fell to $16.99 in November, and Walmart and Target immediately took the move. It has a lot of influence for professional retailers who see it as the “key driver” of the holiday. Since the cost is close to $20, they can meet the price and sell it at a loss, or lose the risk of additional sales due to consumers’ perceptions of excessive prices in stand-alone toy stores.
At press time, the project’s mass retail price returned to $28.99, but it may have caused some losses. Although mass retailers did not respond to requests for comment, Toy Book Talk to professional retailers and manufacturers to learn about one of the most controversial pricing environments since the era of “category killers”.
A tough vacation
“I rarely want to shout out extremely low prices in toys and games because it’s a feature of today’s times and our industry,” explains Rick Derr, president of Learning Express Toys & Gifts in Illinois, Illinois, Learning Express Franchise Counsel. “But I wonder why a highly visible and high-quality toy is so low that it dyes the image of the item. To me, this generally hurts the image of the toy when manufacturers developed very high-quality and value-driven toys.”
At Hollywood Heroes, a specialist retailer in Westwood, New Jersey, owner Jordan Hembrough said profit margins fell last year, the most aggressive price he has encountered in his business.
“We see a lot of customers checking their phones and comparing prices on different websites. At that time, it was just “who has the lowest price? “The problem. In the long run, this is ultimately unsustainable,” he explained.
Basic fun! CEO Jay Foreman agrees: “The battle here is a battle between a retailer and a smartphone or computer, and shoppers have full transparency and real-time best prices. That’s a battle, and I’m afraid it’s hard for professional retailers to win,” he said. “The best chance is if they have exclusive versions of products that are only sold in professional stores. You can’t win the battle to sell Barbie dolls from mass retailers in a professional store. You have to have a special version of Barbie doll that sets you apart. Just like caring for bears or squeezers.”
Repair product portfolio
“Not every SKU is ubiquitous – channel management is essential,” explains Gwen Ottenberg, owner of Imagine The Toys in Kansas Wichita. “Manufacturers must make sure their internal sales team understands how to position their products in mass retail and communicate that information to make informed decisions [at specialty]. ”
According to Omer Dekel, CEO of PMI Children’s World, “strict temporary launch standards” have led retailers to propose early promotional prices, which may not be needed.
Work together to find creative solutions
Derr noted that the early rollout was a way to balance the game venue, citing the success of Melissa & Doug and Sky Castle Toys last year. The task is greater, but hopeful, for major suppliers who deal with retailers of all sizes and channels.
“The evolving retail landscape presents a real challenge, which we take seriously,” said Cynthia Williams, CEO of Funko. “Price volatility, deep discounts and accelerated clearance cycles create complexity for retailers and manufacturers. To address this issue, we work more closely with manufacturing and retail partners than ever to develop a planned model that effectively balances supply and demand. Strategic inventory forecasts help minimize price cuts, while exclusive products from specialty retailers create differentiation in the market. A balanced channel strategy – ensuring that specialty retailers can use unique SKUs or early issuances – helps mitigate pricing conflicts and improves customer value quality. Ultimately, a healthier retail ecosystem benefits everyone and we are committed to bringing long-term successful solutions to all partners.”
Versions of this feature were originally published in the 2025 Big Toy Book. Click here to read the full question! Want to receive a printed toy book? Click here to get the subscription options!
