Lubbock Business Owner Explains Why Toy Prices Rise Before The Holidays | KLBK | KAMC
LUBBOCK, Texas – Supply chain shortages have driven up prices for many industries, including the toy industry, according to a Lubbock business owner on Monday.
Paul Cimino, owner of Building Blocks Toy Store, said he saw supply chain problems start around the same time last year, but he didn’t expect the problem to be as bad as it was. ‘he is now.
Although the problem has affected his business, he said it could be worse. He started buying holiday stock in May, which is early for the toy store. In the past, he would order holiday supplies in early October.
“[I] I practically threw caution to the wind and started overbidding knowing that I would get a certain percentage of those orders, ”Cimino said. “So far, it’s settled. He’s just on time.
His business is doing well and last Friday Building Blocks Toy Store had its largest inventory in over two years. Cimino said that because he started buying his Christmas inventory earlier, people were able to shop earlier.
Cimino saw people buying toys earlier this year than in previous years.
“Last Saturday [felt] looks more like the first Saturday in December than the first Saturday in November. My October numbers were comparable to November numbers, ”Cimino explained.
He said that with supply chain costs having skyrocketed over the past year, he has always had to increase toy prices.
Cimino said shipping containers from China to Houston last year cost between $ 10,000 and $ 12,000, and now cost between $ 50,000 and $ 60,000.
“Once we get these containers to a US port, we still have 30-50% fuel costs, maybe even more, to transport it from the port to the distribution point,” he explained.
Cimino said even the supply chain for products made in the United States has slowed down, possibly due to higher demand and labor shortages.
“The Breyer horses are a good example. They are one of our main suppliers and being based in New Jersey, they haven’t performed as well as we expected in recent years, ”the toy store owner told KLBK News.
Cimino said people are “just doing what they can” to survive.
“It makes me work a lot harder and take more risk in an economy where taking risks can be deadly,” he added, “but keep swinging.”
Cimino said it’s about putting one foot in front of the other every day and adapting to change.