re: Why are toys so expensive?

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It's not so much the toy itself. Rather, it's the licensing and intellectual property that the toy represents. Kids want Star Wars toys and GI Joe toys. They pay for the brand.

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The toy industry has also evolved into having to be safety tested almost as badly as the pharma industry. Safety testing, trials, more testing, publishing studies on swallowing, breakage, small parts, sharp edges, pointy things, color, coloring agents, dyes, chemistry.....the list goes on and on.

Add 40-50 testers onto the payroll to make any product and throw in a handful of govt. agencies to oversee and regulate and see what happens to the price of the product.