Monday Morning Optimism 12/18/2023
Falling Toy Prices
This post is sponsored by Suited, a digital marketing firm that recently redesigned the Sage Policy Group website (check it out, it’s gorgeous) and has been helping our small business with marketing and branding. Suited, much like Sage, works with clients in all segments but is especially experienced in the construction industry. If you’re in the market for a new website or need help with marketing, branding, IT, or anything else digital, we strongly urge you to reach out to them.
Despite the worst inflation in over two decades, toy prices have fallen 3.1% since the start of the pandemic, while average hourly earnings are up more than 19%.
This is part of a much, much longer-term trend: toy prices actually peaked in August 1997 and have since fallen more than 77%. Several factors are at play here, like globalization and more efficient manufacturing, but we think the biggest driver is kids playing with the internet instead of physical toys; in 1997, just 14% of households had internet access. As of 2022, that had risen above 90%.
If you’re not optimistic about the internet replacing toys, well, fair enough. The good news is you can buy real toys for the kids in your life at a cheaper price point than ever this year.