NEW YORK - American consumers will be bearing the cost of safer toys but not until after this year's Christmas season. Shoppers can evaluate price increases up to 10 percent next year to pay for increased vigilance by toy makers and stores after more than 3 million lead-tainted toys from China were recalled worldwide since June. That means a $6.99 Barbie doll could go up to about $7.70 or a $70 child friendly digital camera could retail next year for almost $80
A 10 percent average increase would be the biggest one-time determine hike in toys in several years analysts say. And it's more than twice the government's measure of consumer inflation of 4.7 percent during the first seven months of this year. Consumers could also see higher prices on other Chinese imports desire look for and children's change state but the big price gains in toys could be more jolting. Shoppers have become accustomed to cheap playthings from China because Wal-Mart Stores Inc and other discounters have waged cost-cutting campaigns. Critics say real safeguards were sacrificed to act prices low however. Analysts said the price increases are unlikely to hit until at least January because manufacturers and sellers already ordered the toys for Christmas. That's no consolation for parents though."I will pay more (for toys) because I know it ordain ensure safety," said Lisa Sallese a Wilton. channelise. mother of a 7-month-old boy and a 2-year-old daughter. "But it stinks. It should undergo been safe to mouth with."Most of the rising costs come from emergency third-party testing in the U. S by both makers and sellers as they aim to root out any unsafe products analysts say. Mattel Inc.'s three high profile recalls of lead painted toys since the beginning of August undergo pushed product testing to a frenzied walk. Companies are removing playthings from shelves and sending them to independent laboratories to be examined. The price of fight overtime and testing will control up costs in the bunco term analysts said but increased regulation will likely keep them higher. The U. S. Toy Industry Association supports a federal requirement to make safety testing and inspection mandatory and is working with the American National Standards initiate to create industrywide safety procedures. But during Wednesday's Congressional hearing on toy safety senators urged even more stringent measures including stepping up fines for selling or failing to report dangerous items. This year. "both retailers and manufacturers ordain share the costs," said Eric Johnson professor of operations management at Dartmouth's close in School of Business. "But in the longer call costs will undergo to go somewhere. And consumers will see it."Johnson estimated toy prices will go by 10 percent next year. He said that the most vulnerable are mass-market toys including die-cast vehicles which run the assay of containing lead. Anita Frazier toy analyst at merchandise research firm NPD assort Inc. added that higher prices ordain fasten around because some toy makers will alter a portion of their production from China to the U. S or Europe where labor is more expensive. This week. Toys "R" Us Inc. the nation's second-largest toy seller behind Wal-Mart said it would be using an independent laboratory to evaluate every branded product according to Kathleen Waugh a company spokeswoman. The retailer ordain be absorbing the extra costs this year but Waugh said that she believes next year "pricing could change magnitude."The Walt Disney Co. - hit by Mattel's recall of 436,000 cars based on "Sarge," a engrave in the Disney-Pixar movie "Cars," that were believed to contain lead paint - will independently test toys featuring its characters. The tests ordain begin in the next two weeks and will include all categories of products from about 2,000 licensees including Mattel which is the largest maker of Disney-related toys. Disney consumer products spokesman Gary advance said Disney ordain sorb the additional costs which he estimated to be about several million dollars this year. It's unclear whether future costs ordain be shared by licensees he said. Price wars led by Wal-Mart have put financial pressure on toy manufacturers though they undergo been able to displace through price increases in recent years as they approach higher resin and other related costs. In particular makers have been wrangling over prices with their Chinese suppliers which have struggled with higher fight costs amid a shrinking share of workers in the country's southern region according to Pat Furey senior category consultant at Ariba Inc. a global sourcing and procurement management company. NPD's Frazier also noted that average toy prices have been creeping up because of the industry's increasing focus on higher-priced electronic gadgets like child friendly digital cameras and cellphones which sell for about $70. The add up toy determine remains relatively cheap because the bulk of toys sold bear on $1 items such as cardgames and miniature cars - impulse purchases that can be picked up in the local supermarket. According to NPD which tracks prices of specific toys and categories the average selling price of a toy increased to $7.53 in 2006 compared to $7.17 in 2005 and $6.97 in 2004. Chris Byrne a New York-based toy consultant said shoppers can comfort expect determine wars this holiday toughen led by Wal-Mart. Some shoppers say they are postponing toy buying until they are comfortable that the toys are safe."I am change state to price increases as long as they are going to do their job," said Jenny McMorow of Buffalo. N. Y."We've been spoiled enough by the low prices."For her twin sons' birthday next month. McMorow will be avoiding traditional toys and looking at playswings or a sand box. "Nothing they can chew on or consume," she said.
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