Christmas Plush is Now Shipping!

Pillow Chums are Shipping

Plush Toys bring Comfort to Those in Need

In the aftermath of devastating tragedies such as the Japan earthquake and recent Missouri tornadoes it is imperative to get necessary supplies to those in need. As an employee of a wholesale plush toy distributor, I have worked with charity organizations to ship stuffed toys to these areas. It was not until I received word back from a woman who raised money for Haiti that I realized how much comfort and joy the recipients derived from a simple plush toy. She mentioned that there was a mad rush for the toys and how excited they were. I also worked with a missionary church who distributed plush toys to a small village in Honduras last summer. I received the same feedback and how they wish they had brought more for they had run out. This year the same group is taking plush toys to a Thailand orphanage. The pictures we have received say it all! Hooray for the old fashioned Teddy Bear!

$0.85 Beanie Blow-Out

As prices continue to rise, The Toy Barn is diligent about bring value to it's customers. Mix these cute beanies in with your regular mix to lower the average cost to $0.99. Huge Variety of styles in one single mix!

Easter Plush Now Shipping!!

Order early for the best variety!! Plush toys available in Beanie, Small & Jumbo sizes.

Call Toll Free 1.877.TOY.BARN (869.2276) and/or visit www.ToyBarn.com

COMMISSIONS AND YOUR COST OF SALES

We’ve heard all types of term to quote commission percentages to prospective customers.  We’ll name a few we’ve encountered most often:

Gross Balance = Percent remaining after the cost of sales is deducted (the pure cost of the toys).

Gross after Tax = Percent remaining after the sales tax is deducted from the plush used (many operators quote customers a percentage off the gross take yet neglect to tell them they will be deducting sales tax before the commissions are paid).

Net = Typically used to refer to the percentage remaining after the cost of sales is deducted (same as gross balance).  Not the same as net profit.

Gross = Straight percentage of the total gross without anything taken out beforehand.

                                                           

When competing for locations, the prospective customer usually only remembers the percentage they’ve been quoted and not the particulars.  It’s also very important you decide which method you are going to use in your sales effort and stick to that.  We like to quote a straight percentage off the gross; this way the customer knows exactly what percentage they’re receiving and doesn’t have to worry about the potential for adjustment by the operator down the line.  Be sure you understand the different ways operators can quote commissions so you’re playing on a level playing field.  A video game operator who brings machines into a location typically gives the location owners around 50% of the net, they just need to understand the sales cost associated with the crane machines and how the numbers work.

In general, your commission percentage to the location owner may be between 25-35% of the gross.  This percentage is typical for the West Coast but may vary across the nation.  Your cost of sales on the other hand may range between 25-35%.  If you run too tight a cost of sales you won’t have anybody winning prizes, you also won’t have any sales and may even hurt your chances of future business, as your machine(s) becomes known as poor playing.  Generally speaking, we’ve found the optimal cost of sales to be between 28-38%.  Although this number varies over 10% range, your particular circumstances may enable you to vend more products and generate much higher gross revenues.  Those higher revenues may offset the increase in your cost of sales.

The most important aspect of the skill crane business is that your players win toys.  Your business will only succeed if merchandise moves out of your machines.  Come up with your own formula using these general guidelines and you’ll do just fine.

NEXT MONTH ----------> Your Equipment

Loading Your Machines

Loading machines can make or break you.  Once your equipment is set up according to the type of mix you are running, you need to monitor and regulate your cost of sales via your loading technique.  The most important thing to remember when loading is that players must be able to win prizes.  You won’t last very long if merchandise isn’t flowing out of your machines.  On the flip side, you won’t last very long if you’re giving away the store.  Be aware of how each item plays and load accordingly, always keeping your cost of sales in mind.  Frequently checking the sales cost in each machine also helps you determine whether you may have a problem with the machine, the loading or possible vandalism.

In most locations, 80% of players are repeat players. Therefore, it is suggested you concentrate on changing your entire toy presentation every time you reload your machines.  Use new, previously unseen items, rotate items out from the bottom of your load and reposition items to give your presentation a fresh look.  Keep a careful eye on color as well by mixing different colors evenly throughout your presentation.  Avoid placing items of like color together.  Also, be sure that you place items in the direction that customers view and play the machine.  For example, most of your pieces will naturally be facing forward, however, you may have your machine placed in a location that provides customers with a good view through the side glass on one or both sides of the machine.  You can capitalize on these “view areas” (the front and sides where customers first view your machine) by placing some items facing in that direction.  The goal being that your crane should look good from all sides not just the front.  Treat your “view areas” like a storefront display.  Avoid smashing down your base or simply piling toys one atop another so that the “view area” ends up looking like pressed grapes.  Your entire machine should look fluffed and playable, form the top to the bottom.  Overall, you want to develop a stadium affect with your product presentation by pulling items in the back higher than in the front.

It’s also important to utilize what toy mixes you have available in the most efficient manner.  If you’re working with a small selection of items, stagger the new pieces over days rather than all at once.  Remember, your repeat customers, who are usually adults, won’t play for items they may already have won or are bored with because they’ve seen it before.  Adults perceive quality and value and won’t be playing your machines if both aren’t present.  Attracting the first time customer is easy, keeping repeat customers is a whole different ball game.  

Next Post------>Commissions and your Cost of Sales 

Need Variety, Size and Value in your plush toys to stimulate more plays??..That's what we Do!!! 

Visit www.ToyBarn.com or call Toll Free 1.877.TOY.BARN (869.2276)