Inflation, the curse of our pocketbooks and the Federal Reserve, has hit almost every good in the U.S. But the price of a beloved toy has managed to hover around $1 — for more than 50 years.
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Zahn is the editor-in-chief of The Toy Book, a trade publication that has covered the toy industry in North America since 1984. …
Bruce Pascal
“It is exceptionally rare to find a toy that maintains its price for a few years, let alone more than five decades,” Zahn said. “Hot Wheels are an anomaly in that the continued sales volume and razor-sharp production pipeline manage to keep costs just low enough to maintain that sweet $1 price point.”
A brief history of Hot Wheels
Hot Wheels are the brainchild of Elliot Handler, a co-founder of Mattel, who was eager to create toy cars that reflected “the radical versions altered by custom-car shops — like vehicles he often saw on California’s highways,” New York’s Museum of Play states on its website. …
Hot Wheels
Hot Wheels
These initial models sold for 69 to 89 cents each (which is about $6 to $7.60 today, accounting for inflation), said Bruce Pascal, an avid Hot Wheels collector and author of Hot Wheels Prototypes which includes the narrative history of the toy.
Those prices, combined with promotions at gas stations, were crucial in the early success of Hot Wheels, Pascal said.
“There were a lot of gas stations in the 1970s where if you filled your car up with 8 gallons of gas, you got either a free Hot Wheels or you got one for 69 cents, but most of them gave it to you for free,” Pascal said. “Mostly Shell gas stations, but also private gas stations wanted to get in the game.”
Turning a children’s toy into a serious business
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A glimpse at Mattel’s Hot Wheels store reveals a smorgasbord of collaborations (Nintendo, DC Universe), race track accessories, and toys completely devoid of wheels. The brand has also extended its reach into pop culture through categories like gaming, apparel, film, and NFTs. Then there’s Mattel Creations, which features limited Hot Wheels releases like the RLC Exclusive Nissan Skyline GT-R which retailed for $25 and included a full metal base and Spectraflame paint.
…Investment in high-tech manufacturing capabilities and the introduction of cutting-edge technology have also helped keep costs down, Wu added.
Hot Wheels
While Hot Wheels has fully embraced the nostalgic adult demographic, the production of high-quality, $1 cars, remains at the heart of the company’s mission, Wu said.
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“You’re gonna buy a Hot Wheel for what, $1.29 today, or whatever the average number is? It’s pocket change,” Pascal said. “One of the reasons why I think Mattel is so successful is, you know, there are 330 million Americans, probably every adult, every kid that you know, has played with the Hot Wheel at one time, because they’re so affordable.”
-Alfonso, F. (2022, December 16). Why Hot Wheels are one of the most inflation-proof toys in American history. NPR. https://www.npr.org/2022/12/16/1143282569/why-hot-wheels-are-one-of-the-most-inflation-proof-toys-in-american-history
It’s impressive that Mattel can continue to keep Hot Wheels affordable despite ongoing inflation. The Hot Wheels car is so affordable that people will never stop buying them, which is a genius business strategy on Mattel’s part, as they have other brands that have higher priced toys. The real money comes from accessories for the cars, like tracks on which to race them, as well as collaborations with brands and collector cars. I also found it interesting that they were first advertised at gas stations and given away to customers who filled a significant portion of their tank. This is a great way to have people associate their own car with the Hot Wheels car while advertising them. Hot Wheels is a great example of car culture through toys, and how from a young age people are taught to appreciate the speed and artistry of cars. I could use this element of nostalgia and childlike wonder in my own design, or even acknowledge collectors of cars and/or Hot Wheels by building something for collectors.
